Why Do Contracts Always Liquidate? It’s Not Bad Luck, It’s That You Don’t Understand the Essence of Trading! This article condenses ten years of trading experience into low-risk rules that will completely overturn your understanding of contract trading — liquidation is never the market's fault, but a time bomb you planted yourself.

Three Major Truths That Disrupt Understanding

Leverage ≠ Risk: Position is the Lifeline

At 100x Leverage with 1% Position, Actual Risk is Only Equivalent to 1% of Spot Full Position. One student used 20x leverage on ETH, investing only 2% of principal each time, with three years without liquidation. Core Formula: Real Risk = Leverage Multiple × Position Ratio.

Stop Loss ≠ Loss: The Ultimate Insurance for the Account

In the March 2024 Crash, 78% of Liquidated Accounts Had the Common Characteristic: Losses Exceeding 5% Without Setting Stop Loss. Professional Trader's Iron Rule: Single Loss Must Not Exceed 2% of Principal, Equivalent to Setting an 'Electrical Fuse' for the Account.

Rolling Positions ≠ All-in: The Correct Way to Open Compound Interest

Ladder Positioning Model: Initial Position 10% for trial and error, increase position by 10% of profits. Initial position of 5000 yuan (10x leverage) with 50,000 principal, increase position by 500 yuan every 10% profit. When BTC rises from 75,000 to 82,500, the total position only increases by 10%, but the safety margin increases by 30%.

Institutional-Level Risk Control Model

Dynamic Position Formula

Total Position ≤ (Principal × 2%) / (Stop Loss Margin × Leverage Multiple)

Example: 50,000 principal, 2% stop loss, 10x leverage, maximum position = 50000×0.02/(0.02×10)=5000 yuan

Three-step Take Profit Method

① Take Profit 1/3 at 20% Profit ② Take Profit Another 1/3 at 50% Profit ③ Move Stop Loss for Remaining Position (Exit if Breaking 5-day Line)

In the 2024 Halving Market, this strategy increased 50,000 principal to 1 million during two trends, yielding over 1900%

Hedging Insurance Mechanism

Using 1% of the principal to buy Put options while holding positions can hedge 80% of extreme risks. In the April 2024 Black Swan event, this strategy successfully salvaged 23% of account net worth.

Empirical Data of Deadly Traps

Holding a Position for 4 Hours: Probability of Liquidation Increases to 92%

High-Frequency Trading: Monthly Average of 500 Trades with 24% Principal Loss

Profit Greed: Failing to take profits in time leads to 83% account profit retracement

IV. Mathematical Expression of the Nature of Trading

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

When Setting 2% Stop Loss and 20% Take Profit, a 34% Win Rate is Sufficient for Positive Returns. Professional traders achieve over 400% annual returns through strict stop losses (average loss of 1.5%) and trend capturing (average profit of 15%).

Ultimate Rule:

Single Loss ≤ 2%

Annual Trades ≤ 20

Profit and Loss Ratio ≥ 3:1

70% Time in Cash Waiting

The Nature of the Market is a Probabilistic Game; Smart Traders Risk 2% to Capture Trend Bonuses. Remember: Control Losses, and Profits Will Run. Establish a Mechanical Trading System, Replacing Emotional Decisions with Discipline is the Ultimate Answer for Sustained Profitability.#币安Alpha上新 #Strategy增持比特币 $ETH