$TURBO Low-Risk Core Principles of 6-Year Contract Trading

Three Major Truths that Disrupt Conventional Thinking

1. Leverage ≠ Risk, Position Size is Key

- 100x leverage + 1% position size ≈ 1% risk of spot trading

- Formula: Real Risk = Leverage × Position Size

2. Stop Loss ≠ Loss, but Insurance

- In the 312 crash, 78% of liquidated traders lost more than 5% yet did not stop loss

- Iron Rule: Single loss ≤ 2% of principal

3. Rolling Positions ≠ All-In, Compounding Must Be Scientific

- Laddering: Initial position 10%, gradually increase after profit

- Example: 50,000 principal, initial position 5,000 (10x leverage), add 500 for every 10% profit

Institutional-Level Risk Control Strategies

✅ Dynamic Position Formula

- Maximum Position = (Principal × 2%) / (Stop Loss Margin × Leverage)

✅ Three-Stage Take-Profit Method

- ① Take 1/3 profit at 20%

- ② Take another 1/3 profit at 50%

- ③ Move stop loss for remaining position (exit below 5-day line)

✅ Hedge Insurance

- Buy Put options with 1% of principal while holding positions, can hedge 80% of extreme risk

Deadly Traps (Data Evidence)

❌ Holding a Position for 4 Hours → 92% liquidation probability

❌ High-Frequency Trading (500 trades a month) → 24% principal loss

❌ Greed Without Taking Profit → 83% of profits given back

Essence of Trading: A Mathematical Game

📊 Profit Formula

- Expected Value = (Win Rate × Average Profit) - (Loss Rate × Average Loss)

- Example: 2% stop loss + 20% take profit, only need a 34% win rate to be profitable

Ultimate Rules

🔹 Single Loss ≤ 2%

🔹 Annual Trades ≤ 20

🔹 Profit-Loss Ratio ≥ 3:1

🔹 70% of the Time in Cash Waiting

The market is a probability game; replace emotion with discipline, and profits will naturally grow! 🚀