Don't let 'holding the position' ruin you! From 700,000 to a million-dollar account, I spent 10 years to understand the 3 survival truths.
The most painful time — holding the position for 12 hours straight, from floating profit to liquidation, 700,000 vanished into thin air!
1. Three truths that overturn cognition
1. Leverage ≠ risk, position size is the lifeline
Risk is not in the multiplier, but in the position size.
100x leverage, using 1% position size, risk = 1% full position.
Some students use 20x leverage to trade ETH, each time only investing 2% of the principal, 4 years without liquidation, annualized returns 3 times higher than spot trading!
Core formula:
Real risk = Leverage multiplier × Position ratio
If I had understood this formula back then, my 800,000 loss could have been at least halved!
2. Stop-loss ≠ loss, stop-loss is the fuse of the account
During the March 12, 2024 crash, 78% of liquidated accounts died because they 'lost over 5% and didn't stop-loss.'
That time I lost 800,000, also from a floating loss of 3%, dragged until 20% and got forcibly liquidated!
Now I set 'fuses' — single trade loss not exceeding 2% of principal, once it hits, I 'cut the power.'
This tactic helped me preserve my 3 million principal during the black swan event in April 2024.
3. Rolling positions ≠ all-in, compounding is the way
In the past, I would go all-in whenever I made a profit, resulting in profits coming and going quickly.
Now I only use a laddered position-building method:
Initial position 10% to test
When profit reaches 10%, increase position by 10% of profits
During the BTC surge from 75,000 to 82,500 in 2024, I only expanded my total position by 10%, yet my safety margin increased by 30%, and profits were still greater than a full position!
2. Institutional-level risk control formula
Before opening a position, first calculate:
Total position ≤ (Principal × 2%) ÷ (Stop-loss margin × Leverage multiplier)
For example, with a 50,000 principal, stop-loss at 2%, and 10x leverage:
Maximum position = 50,000 × 0.02 ÷ (0.02 × 10) = 5,000 yuan
In the 2024 halving market, I used this formula to grow 50,000 to 1 million, with a return rate of over 1900%!
3. Take-profit method: Let profits safely pocketed
Profit of 20% → sell 1/3
Profit of 50% → sell another 1/3, reduce cost
For the remaining amount, use a trailing stop-loss (exit if it breaks the 5-day line)
Last year, for a certain cryptocurrency, I preserved 80% of the profits, while friends who held on ended up with just a small fraction.
Remember one thing:
A single tree cannot make a forest, a lone sail cannot travel far, find the right people, and walk the right path.
I’ve always been here, ready to turn losses into profits and fight against the market makers!