Years ago, I personally experienced the painful lesson of being liquidated within just five days, losing more than 6 million. As someone who has been through it, I sincerely advise all newcomers to the crypto world, for those lacking practical experience, it is wise to be cautious and even temporarily refrain from trading to prevent significant losses. Understanding your own limits and acting within your means is crucial.

Since February of this year, I have achieved a remarkable leap from 50,000 to over 20 million in just nine months with a single account. Today, I am willing to selflessly share my trading strategies and insights with every partner who loves the crypto world.

As the saying goes, standing on the shoulders of giants can help you reach the shores of success faster. I hope my experience can be a valuable support on your journey.

Additionally, at the end of the article, I will reveal a crucial profit system, which is the essence I have gained from years of experience in the crypto world. If you are fortunate enough to read this far and eager to enhance your skills in trading cryptocurrencies, please savor it carefully, study it in depth, and consider saving it for future reference.

What is leverage? Can we not let it kill me?
Leverage, as the name suggests, amplifies your capital leverage. Just like you can use a small lever to lift a big stone, leverage allows you to trade larger amounts with very little money. For example, the 5 times leverage mentioned in the diagram means that with 1 USDT, you can control a Bitcoin trade worth 5 USDT.
Doesn't that sound great? But be careful! Leverage can amplify profits, but it can also amplify losses. If the market moves slightly against you, you might lose even more money. Therefore, when choosing leverage, be sure to consider carefully and do not select too high a multiple; after all, most people do not joke when they say 'if you play contracts well, your family will have two houses.'

What does full position and single position mean? Will it affect my profits?
In the Binance trading interface, you will see two options: full position and single position (also called isolated position).


Full position mode: As the name suggests, all the money in the account is counted. When losing, everyone bears it together. If you open several positions and one of them loses heavily, the platform will automatically withdraw money from other places in your account to support you until all your money is lost. In this mode, the risk is shared.
Full position is suitable for those who are bold and meticulous. They believe that using all of their account funds to withstand temporary fluctuations can still get through. But if there isn’t much money in the account, the risk of liquidation is very high.

Single position mode (isolated position mode): On the contrary, isolated positions are like having a small 'independent vault'. You can allocate fixed margin for each position, and if you lose, you will only lose that portion of money without dragging the entire account down. This mode is more suitable for conservative players, so even if one position is liquidated, the others can remain intact.
For example: you have 1000 USDT, in full position mode, if one position loses, the platform will automatically use this 1000 USDT to support you; while in isolated position mode, you can allocate 500 USDT to each position. If one position loses completely, it will not touch the money of another position.

Take profit/stop loss? How should I set it to avoid dying too badly?
Take profit and stop loss, as the names suggest, help you set expectations for profits or losses in advance, allowing the trading platform to automatically close positions when these prices are reached. This is to prevent the market from suddenly changing its face, causing you to incur huge losses without the time to react.

Take profit: When the price reaches the high point you set, the system will automatically sell for you, locking in profits.
Stop loss: When the price drops to your set bottom line, the system will help you stop loss in time to avoid further losses.
However, the setting of take profit and stop loss does not only look at the latest price, but also considers the 'marked price'.

What is the difference between marked price and latest price?

Latest price: This is easy to understand; it is the most recent transaction price in the market, changing every second. If you focus more on the market's real-time fluctuations, you can usually use the latest price to set take profit/stop loss. In this case, as long as the latest transaction price reaches your set point, the system will automatically close the position for you.

Marked price: The marked price is a bit more complex; it is a smoother and more stable reference price calculated by the platform based on market prices, funding rates, and other factors. Its existence is to prevent your position from being unnecessarily liquidated due to extreme short-term price fluctuations.
You can think of the marked price as the platform's 'psychological price,' which is generally more stable than the latest price. If you do not want to be 'mis-killed' by short-term market fluctuations, you can refer to the marked price to set take profit and stop loss.
For example: you set a stop loss order to sell when Bitcoin drops to 63200 USDT. If you set it using the latest price, when the latest price hits 63200 USDT, the system will immediately sell for you. But if the market suddenly experiences a large fluctuation, you might be closed out even before that price. If you set the stop loss using the marked price, it can be more stable during large fluctuations, avoiding being washed out by 'false drops.'

Opening positions, closing positions, going long, going short—confused?
These are all terms in trading. It's actually quite simple; let's break it down:

Opening a position: This means setting up a new position, deciding to buy or sell.
Going long: You expect the price to rise, so you buy an asset (like Bitcoin) and sell it later when it goes up; this is going long.
Going short: You are bearish and believe the price will fall, so you borrow an asset to sell, and then buy it back later to return it; this is going short.
Closing a position: Simply put, this means ending the position you have already opened; closing long means selling what you bought, and closing short means buying back what you borrowed and sold.
Funding rate/countdown, what does it mean?
The funding rate is a unique mechanism of perpetual contracts, where every 8 hours, longs and shorts pay each other a fee. If the rate is positive, it means longs pay shorts; if it is negative, it means shorts pay longs. This is actually a way for the platform to adjust market supply and demand to prevent one-sided markets.
The countdown refers to the time until the next funding rate settlement. When the countdown ends, if you hold a position, you will either pay or receive fees, depending on whether you are long or short.

After listening to me ramble on so much, you may have gained some new understanding of contract trading. Although it seems appealing, the risks are equally huge. Leverage gives you the opportunity to bet small for big returns, but it can also lead to losses that strip you down to nothing.
Therefore, cautious trading and proper risk control are the key.

A thousand times contract may seem fraught with risks at first glance, but in fact, it is the investment type that has brought me the richest profits and the highest win rate. Initially, I was quite confused about it, but later I gradually understood that this was mainly due to my unintentional adherence to a set of clear trading rules:

Total position setting: The funds I use for contract trading are always fixed, for example, the funds of an account are always 300U. This means my maximum loss is 300U, and when market trends are favorable, I have the opportunity to gain tens of thousands of U.
Initial amount: The trading amount I start with is always very low, based on the philosophy of stock trader Livermore. He believed that if you are correct from the start, it is best to start making money right away. Therefore, my initial test amount is always very small, even if the total position is 300U, the initial amount is often just in the single or double digits, ensuring that I am in a profitable state from the beginning.
Position increasing strategy: I only increase my position when there is profit and the trend is clear. This strategy allows me to further amplify profits when market trends are favorable while avoiding increasing risks in an adverse market environment.
Stop-loss setting: I adjust the stop-loss position in a timely manner according to market conditions to ensure that I do not lose my principal. This is an important principle I adhere to in trading, helping me maintain calm during market fluctuations and avoid emotional trading decisions.
These four rules have invisibly made me strictly adhere to trading discipline, and the logic behind them is also applicable to ordinary low-leverage contracts because the reasoning is universal. Of course, before starting, I still want to remind novice players:

Contract trading is not a game, especially for those who think there are certain contract skills or masters who can predict prices. Do not blindly believe that just by following them, you can make a lot of money; this idea must not exist. I do not have that kind of secret that can make you rich just by listening. Moreover, contract trading tests human nature very much. Unless you can stick to using only a very small amount of money, like 100U, 300U, etc., which fits the strategy of 'small bets for big returns' rather than 'big bets for small returns.' I share methods in hopes of providing some references for contract players, that's all.

As for the main techniques:

First, transfer USDT to the contract account of the exchange, but the total amount will not exceed 300U. This amount is set based on my personal trading capital ratio. Generally speaking, you can also use 1% of your total capital as a principle to determine the trading amount, but each transaction should not exceed 300U (this limit only applies to thousand times contracts).

Additionally, I actually do not recommend trading methods like hundred times contracts because the risks are too high and the cost-effectiveness is low. You should either choose low-leverage contracts below 5X and hold a large position or choose high-leverage contracts from 500-1000X and trade with very small positions. It is best to only choose the latter method because contract trading inevitably encounters liquidation, even low-leverage contracts are no exception. A thousand times contract will either liquidate at 300U or yield huge profits; overall, the win-loss ratio is extremely large.

Therefore, if you master the correct methods, you are very likely to make money with contracts. However, if there is no ADL liquidation mechanism at the exchange, you are likely to be wiped out. Previously, my friends and I took advantage of A Web's thousand times contracts until they were taken offline...

I want to emphasize: the essence of contract trading is to bet small for big returns, not to bet big for small returns.

Moreover, due to the extremely high multiples of thousand times contracts, fees and funding costs have become relatively minor; the most important thing is whether you can open the right position. Additionally, the fees for thousand times contracts are much cheaper than other contracts at the same rate. From another perspective, contract trading is essentially borrowing money to open positions, and the borrowed money only needs to pay interest. If you get liquidated, you don’t have to pay back the money, which is actually a very good investment target.

Of course, if you do not trade according to my rules, then the speed of losses will also be very fast.

2. Initial Position Techniques

Assuming BTC is at 16500U now, fluctuating for a long time, I still see it as bearish and expect a big market. It is recommended to start with 4U at 500X. Note, this is 2U out of the 300U.

After opening, just leave it alone regardless of the ups and downs unless you get liquidated. Just watch the show and stay calm — it’s like choosing a direction before opening; you should have more than 70% confidence in the short term, and it is best to expect a big market to appear.

A big market generally appears after the K-line flattens out, as shown in the figure below:

Market after 312

As shown in the figure above, in the market after 312, every time there is a fluctuation, the K-line becomes smoother and eventually a big market will appear either upwards or downwards. At this time, finding opportunities to get involved will be more helpful. As for how to find opportunities, you can refer to some tutorials, observe the appearance of specific K-line patterns, such as the 2B structure, etc.

In many cases, when opening a position, if you feel that the current position is not ideal for various reasons, you can reduce your initial position size, such as starting with 1U. Conversely, if you are particularly confident about a certain position, you can slightly increase it.

However, you need to calculate that with 300U, if you open with 10U at 500X, the total position is 5000U, while your capital is 300U, which is more than 10 times, which is quite risky and not recommended!

Because the key to our initial position is to survive amidst fluctuations, do not be greedy!

3. Position Increasing Techniques

For example, if the market indeed drops below 16000 and there is a huge negative news, and you observe that the trading volume, MACD, etc., all suggest a great opportunity for a big drop, then you need to consider increasing your position, and this is done using profits. This is commonly known as rolling positions, which is the key for small funds to gamble big, but at the same time, rolling positions is a technical skill, and most people get liquidated here. Let's talk about the methods below:

At this time, the market is falling, and my position has already made a profit, with 300U turning into 400U (for example, I did not calculate how much exactly), so I will increase the position at this time.

Before increasing the position, I observed that my profit has reached 100U, so after I increase the position, I suggest setting a stop loss, which is a loss of 100U, leaving a final capital position of 300U.

Because at this point we have already made money, and the direction is very likely correct, there is no reason to risk more capital.

At this point, you need to pay attention that setting a stop loss of 100U actually means that your original position was a capital of 300U, and now it is a profit of 100U. If you increase the position, you could be stopped out at any time.

Because at this time, you can actually take it step by step. First, set a stop loss of 100U, do not rush to increase, wait until the profit expands and then increase a little, little by little, it is best to endure the fluctuations yourself.

The secret here is not to be greedy. If you are not sure, do not increase at all. A 500x contract can be really fierce in profits, and similarly in losses.

There is also a particularly important timing issue when increasing positions. It is best to add positions during a small rebound in a downtrend, or during a small pullback in an uptrend — the 2B structure is particularly useful in this regard and is worth studying.

It is best to increase positions only two or three times, then just watch the market run — the more you add, the more dangerous it becomes during a pullback.

In the figure above, at that time this position finally made a profit of 25000U, and in the end, A Web closed my position under the guise of maintenance... otherwise, I would definitely have made it big in the bull market. My capital was 46U, and the 7U shown in the figure is because some funds were deducted as fees.

The reason A Web closed many profitable positions of mine and my friends was that they did not have the ADL liquidation mechanism, which means the exchange acted as the player's counterparty. Once I figured out this method, A Web started to lose money easily and had to play dirty. On the other hand, Bkex Exchange does not have this problem. Like Binance, it has introduced the ADL liquidation mechanism, making it a competition between users, which does not affect the exchange.

4. Other Supplements

High-leverage short-term trading is the correct way to play contracts, high risk but higher returns — I must emphasize again, I am not telling you to play high leverage, especially for beginners, you shouldn't even touch it because you won't understand. I am just sharing my thoughts and methods.

1. Form your own system.

In a trading system, there is no Holy Grail.

We can see that short-term experts like Lam Williams, CIS, etc., have very good long-term practical results. The former's book has sold a lot, but I haven't seen a second Williams, because everyone's mentality and system change slightly, and the trading results can vary greatly.

Therefore, to wear the crown, one must bear its weight. Form your own trading system, enjoy its benefits, accept its shortcomings, continuously summarize market rules, and keep improving to succeed.

2. Understand the win-loss ratio.

In a trading system, the win-loss ratio is the most important content. The real profit formula is: profit - loss - fees > 0.

There are three basic models in trading, the first two are:

First is high win-loss ratio + low win rate + low frequency. Trend following, medium to long term. For example, Ouyang Zhuai Bai opened long at more than 3000 and held until being forcibly closed by OKEX for nearly half a year. Fat宅 Bitcoin used a capital of 100,000 to achieve a small goal during the 2021 bull market, which is also a trend trader.

Second, low win-loss ratio + high win rate + high frequency. Short-term expert mode, the win-loss ratio is often 1:1, which is very poor. Only some legendary figures might achieve this, and I feel I can't do it. There is also a type of person in this industry who seems to eat the exchange's fee spreads through quantitative high-frequency trading, which is quite advanced, and generally, they won't teach others. Once an exchange discovers one, they will ban the account. Ordinary users do not need to understand this.

Third, terrifying win-loss ratio + medium win rate + extremely low frequency. What I refer to as a thousand times can be categorized as my own classification, let's call it the third category, which is also a unique tool in the crypto space:

With an opening position of 300U, my maximum acceptable loss is 300U. According to my opening method above, I can open many times, but as long as I hit any once, my win-loss ratio will be very terrifying. For example, that 46U position went all the way to 25000U. If the website didn’t cause trouble, it could have reached 50000U later, which is nearly 1000 times. Under such a win-loss ratio, plus only opening positions at critical points, a win rate below 10% is fine — do you think it's easy to have a win rate below 10%? Even with your eyes closed, it's impossible to only have a 10% win rate.

Big data shows that the win rate for retail investors is around 33%.

From a strategic and tactical perspective, both high win rate low win-loss ratio systems and low win rate high win-loss ratio systems, as well as my system, can succeed.

Therefore, there is no need to dogmatically think that there is only one path, that the win-loss ratio must reach above 3:1. A win rate of 10% or 90% can both create successful trading systems.

Since both high win rates and low win rates can succeed, there is no need to get tangled up in whether to do long or short trades; you can even mix both. The important thing is to find a trading method that suits you under the condition of having good strategic and tactical matching.



This is the trading experience that Liang Ge shared with everyone today. Many times, you lose many profitable opportunities due to your doubts. If you do not dare to boldly try, to get in touch, to understand, how can you know the pros and cons? You only know what to do next after taking the first step. A cup of warm tea, a piece of advice, I am both a teacher and your good friend.

Meeting is fate, and knowing each other is a bond. Liang Ge firmly believes that fate will bring us together from thousands of miles apart, while parting ways is destiny. The journey of investment is very long; a moment's gain or loss is just the tip of the iceberg. Remember that even the wisest can make mistakes, and even the foolish can have their gains. Regardless of how your emotions fluctuate, time will not stop for you. Pick up your worries, stand up, and move forward again.#NFT板块领涨 #稳定币监管风暴 $BTC $ETH