Break cognitive biases, reshape trading logic
Leverage is a tool, position is a reins: A hundred-fold leverage is not scary; what’s scary is losing control of the position. Using 1% of funds with a hundred-fold leverage poses risks comparable to spot investment. Remember the key formula: Actual risk = Leverage × Position. A small position with high leverage can still operate steadily.
Stop loss is not admitting defeat; it's about survival: Holding onto losses beyond 5% is the main cause of liquidation! The iron rule of seasoned traders is: a single loss must never exceed 2% of the principal. A stop loss is like severing an arm to survive; preserving the principal allows for a comeback possibility.
Positioning must be steady, compound interest must be gradual: rolling positions are not a gamble but the correct way to compound interest. Use 10% of floating profits to cautiously add to positions (for example, the first position occupies 10%, and after profit, take a small part from the profits to add), which can both increase returns and maintain a safety margin. Steady progress is essential to go far.
Institution-level risk control techniques, strengthening the capital defense line
Calculate the position death line: Maximum position ≤ (Principal × 2%) ÷ (Stop loss amplitude × Leverage). For example, with a principal of 50,000, setting a 2% stop loss and using 10x leverage, the maximum position can only be 5,000 yuan—this is an absolute life line that must not be breached!
Three-stage profit-taking, securing profits: ① When profits reach 20%, recover 1/3 of the position; ② When profits reach 50%, recover another 1/3; ③ Set a trailing stop for the remaining position (for example, if it drops below the 5-day moving average). Let part of the profits continue to grow while some are secured in time for a more balanced attack and defense.
Hedging against black swans: while holding a position, buying Put options with 1% of the principal can insure against extreme market conditions.
The liquidation traps revealed by data must be approached with caution
Holding a position for more than 4 hours increases the risk of liquidation to 92%;
Operating over 500 times a month, fees and other losses will consume 24% of the principal;
Failing to take profits in a timely manner after gains will lead to an 83% profit drawdown.
The essence of trading: the game of probability and discipline
Profit expectation = (win rate × average profit) - (loss rate × average loss). As long as you strictly adhere to a 2% stop loss and aim for 20% profit, even a win rate of only 34% can achieve profitability. Top traders rely on strict stop losses (average loss ≤ 1.5%) and capturing trends (average profit 15%) to stand out in the end.
Survival rules that must be followed
Single loss ≤ 2% of principal;
Operate no more than 20 times a year;
Win-loss ratio ≥ 3:1;
Stay in cash 70% of the time and wait.
The essence of the market is a probability game. Smart people take a 2% risk to gain the benefits of trends. Those good at defense are like hiding in the unfathomable underground; those good at offense are like moving in the unattainable sky. Locking in losses will naturally lead to continuous profits. Building a mechanical trading system, letting discipline win over emotions, is the ultimate way to be invincible. Remember, wealth does not enter through urgent doors; slow is often faster.
Want to delve deep into the crypto world but can't find direction? Want to quickly get started and master information gaps? Click on my profile to follow me! I share first-hand information and in-depth analysis in real-time, with precise buy and sell points and immediate updates on crypto dynamics! #Liquidation Data #币安HODLer空投 #币圈 
