Don't let 'holding orders' ruin you: From 900,000 liquidation to a multi-million account, a 10-year journey in the crypto world, the most painful part was the 900,000 loss - continuously holding orders for 12 hours, the account went from floating profit to liquidation.
1. Three major truths that overturn perceptions: Survival logic understood only after losing 800,000 - Leverage ≠ Risk: Position size is the lifeline, risk does not lie in leverage multiples, but in position control. Using 100x leverage with 1% position, the risk is only equivalent to a full spot position of 1%. Some students used 20x leverage to trade ETH, investing 2% of their principal each time, 4 years without liquidation, annualized returns 3 times higher than spot. Core formula: Real risk = Leverage multiple × Position ratio. If I had understood this back then, the 800,000 loss would have been at least halved.
Stop loss ≠ Loss: The ultimate insurance for the account
During the 312 crash in 2024, 78% of liquidated accounts did not stop loss due to losses exceeding 5%. My 800,000 loss was also due to the fantasy of 'it will bounce back', dragging a floating loss of 3% to 20% before being forcibly liquidated. Now I set a 'fuse': a single loss does not exceed 2% of the principal, like an overloaded circuit that automatically cuts off power, this trick helped me avoid the 4 black swans in April 2024, preserving 3 million of my principal.
Rolling positions ≠ All-in: The correct way to use compound interest
In the early years, I would go all-in when profitable, with profits coming and going quickly. Later I adopted a laddering approach: first position 10% for trial and error, only using 10% of profits to add.
Laddering: First position 10% for trial and error, only using 10% of profits to add positions. With a principal of 50,000, the first position is 5,000 (10x leverage), every 10% profit I would add 500. In 2024, when BTC rose from 75,000 to 82,500, the total position expanded by 10%, the safety margin increased by 30%, and profits exceeded those of a full position.
2. Institutional-level risk control model: From 'passive liquidation' to 'active control'
Dynamic position formula: Calculate clearly before placing an order: Total position ≤ (Principal × 2%) / (Stop loss margin × Leverage multiple). For example, with a principal of 50,000, 2% stop loss, 10x leverage, the maximum position is 50,000 × 0.02 / (0.02 × 10) = 5,000. In the 2024 halving market, 50,000 leveraged this to reach a million, with a return rate exceeding 1900%.
3. Take profit method: Let profits be secure
Close 1/3 when profits reach 20%, secure profits; close another 1/3 at 50%, reduce costs; the remaining use trailing stop loss - exit when breaking the 5-day line. Last year, for a certain cryptocurrency, I preserved 80% of the profits, while friends who held on ended up with almost nothing.
Still the same saying:
One tree cannot make a boat, a lonely sail cannot go far, recognize the right people, and walk the right path! On the road to recovery and flipping, I have always been here!!
