Attention to Total Liquidation of Contracts! Here’s some solid information!
Why do contracts always liquidate? It's not bad luck; it's that you fundamentally don't understand the essence of trading! This article, which condenses ten years of trading experience into low-risk principles, 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 Overturn Cognition
Leverage ≠ Risk: Position Size is the Lifeline
Using 1% position with 100x leverage, the actual risk is only equivalent to 1% of a full spot position in #Bitcoin. A student used 20x leverage to trade ETH, investing only 2% of the principal each time, with three years of no liquidation. Core Formula: Real Risk = Leverage Multiplier × Position Ratio.
Stop Loss ≠ Loss: The Ultimate Insurance for the Account
During the 312 crash in 2024, the common characteristic of 78% of liquidated accounts: losses exceeded 5% without setting stop losses. Professional traders' iron rule: single loss must not exceed 2% of the principal, equivalent to setting a "circuit fuse" for the account.
Rolling Positions ≠ All-In: The Correct Way to Compound
Staircase Positioning Model: Initial position 10% for trial, add 10% of profits to increase position. With a principal of 50,000, the first position is 5,000 (10x leverage), and when profit reaches 10%, add 500 to the position. When BTC rises from 75,000 to 82,500, the total position only increases by 10%, but the safety margin improves by 30%.
Institution-Level Risk Control Model
Dynamic Position Formula
Total Position ≤ (Principal × 2%) / (Stop Loss Margin × Leverage Multiplier)
Example: With a principal of 50,000, 2% stop loss, and 10x leverage, the maximum position is calculated as 50000 × 0.02 / (0.02 × 10) = 5,000.
Three-Stage 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 the remaining position (exit when breaking the 5-day line)
In the 2024 halving market, this strategy increased a principal of 50,000 to a million during two trends, with a return rate exceeding 1900%.
Hedging Insurance Mechanism
Use 1% of the principal to buy Put options while holding positions, which has been tested to hedge 80% of extreme risks. During the Black Swan event in April 2024, this strategy successfully saved 23% of the account's net value.
Empirical Evidence of Fatal Traps
Holding a position for 4 hours: the probability of liquidation increases to 92%
High-Frequency Trading: An average of 500 operations per month results in a 24% loss of principal
Profit Greed: Failing to take profits in time leads to an 83% drawdown of the account
IV. Mathematical Expression of Trading Essence
Expected Profit = (Win Rate × Average Profit) - (Loss Rate × Average Loss)
When setting a 2% stop loss and a 20% take profit, only a 34% win rate is needed to achieve positive returns. Professional traders achieve an annualized return of over 400% through strict stop-loss (average loss 1.5%) and trend capture (average profit 15%).
Ultimate Rule:
Single Loss ≤ 2%
Annual Trades ≤ 20
Profit and Loss Ratio ≥ 3:1
70% Time in Cash Waiting
The essence of the market is a probability game, and smart traders risk 2% to seize trend dividends. Remember: Control losses, and profits will run. Establish a mechanical trading system to let discipline replace emotional decisions; this is the ultimate answer for sustained profits.
#币安HODLer空投SPK #ALT #IO