Why do you always get liquidated when playing contracts? It's not because of bad luck, but because you don't understand the essence of trading! This low-risk rule, which condenses ten years of trading experience, will completely subvert your understanding of contract trading - liquidation is never the market's fault, but a time bomb you planted yourself.
Three truths that subvert cognition
Leverage ≠ Risk: Position is the life and death line
With 100x leverage and a 1% position, the actual risk is only equivalent to 1% of the full position of #Bitcoin. A student used 20x leverage to operate ETH, investing only 2% of the principal each time, and had no liquidation record in three years. Core formula: Real risk = leverage multiple × position ratio.
Stop loss ≠ loss: the ultimate insurance for your account
In the 2024 March 12 crash, 78% of the accounts that were liquidated had a common feature: no stop loss was set even when the loss exceeded 5%. The iron rule of professional traders: a single loss should not exceed 2% of the principal, which is equivalent to setting a "circuit fuse" for the account.
Rolling position ≠ all-in: the correct way to open compound interest
Ladder position building model: 10% trial and error for the first position, and use 10% of the profit to increase the position. The first position of 50,000 yuan (10x leverage) for a principal of 50,000 yuan, and 500 yuan for every 10% profit. When BTC rises from 75,000 to 82,500, the total position only expands by 10%, but the safety margin increases by 30%.
Institutional-level risk control model
Dynamic Position Formula
Total position ≤ (principal × 2%) / (stop loss range × leverage multiple)
Example: 50,000 yuan principal, 2% stop loss, 10x leverage, the maximum position is calculated to be 50,000 × 0.02/(0.02 × 10) = 5,000 yuan
Three-level profit-taking method
① Close 1/3 of the position when the profit reaches 20% ② Close another 1/3 when the profit reaches 50% ③ Move the stop loss on the remaining position (exit when the 5-day line is broken)
In the 2024 halving market, this strategy increased the principal of 50,000 to 1 million in two trends, with a yield of over 1900%
Hedging insurance mechanism
When holding a position, use 1% of the principal to buy Put options, which can hedge 80% of extreme risks. In the black swan event in April 2024, this strategy successfully saved 23% of the account net value.
Deadly trap data evidence
Holding an order for 4 hours: The probability of liquidation increases to 92%
High-frequency trading: 500 operations per month, 24% loss of principal
Profit greed: 83% of the account lost profit if profit was not stopped in time
4. Mathematical Expression of the Essence of Trading
Profit expectation = (win rate × average profit) - (loss rate × average loss)
When setting a 2% stop loss and a 20% take profit, a positive return can be achieved with only a 34% win rate. Professional traders achieve an annualized return of 400%+ by strictly stopping losses (average loss 1.5%) and capturing trends (average profit 15%).
The ultimate rule:
Single loss ≤ 2%
Annual transactions ≤ 20
Profit and loss ratio ≥ 3:1
70% of the time, short position waiting
The essence of the market is a game of probability. Smart traders use 2% risk to gain trend dividends. Remember: control losses and profits will run. Establishing a mechanical trading system and letting discipline replace emotional decision-making is the ultimate answer to continuous profitability.
