Why do contracts always blow up? It's not bad luck; you fundamentally don't understand the essence of trading! This article, condensing ten years of trading experience, presents low-risk principles that will completely overturn your understanding of contract trading — blowing up is never the market's fault, but a time bomb you buried yourself.
Three major truths that overturn understanding
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 certain student used 20x leverage to operate ETH, investing only 2% of capital each time, with three years of no blow-ups. Core formula: Real risk = Leverage multiplier × Position ratio.
Stop-loss ≠ Loss: The ultimate insurance for your account
During the 312 crash in 2024, 78% of blown accounts shared a common characteristic: a loss exceeding 5% but no stop-loss set. Professional traders' iron rule: A single loss should not exceed 2% of capital, equivalent to setting an 'electrical fuse' for the account.
Rolling positions ≠ All-in: The correct way to compound returns
Laddered position building model: Start with 10% for trial, use 10% of profits to add positions. With a capital of 50,000, the first position is 5,000 (10x leverage), and for every 10% profit, add 500. When BTC rises from 75,000 to 82,500, the total position only expands by 10%, but the safety margin increases by 30%.
Institution-level risk control model
Dynamic position formula
Total position ≤ (Capital × 2%) / (Stop-loss range × Leverage multiplier)
Example: With 50,000 capital, 2% stop-loss, and 10x leverage, the maximum position calculated is = 50000 × 0.02 / (0.02 × 10) = 5000
Three-stage take-profit method
① Close 1/3 at 20% profit ② Close another 1/3 at 50% profit ③ Move the remaining position's stop-loss (exit when breaking the 5-day line)
In the 2024 halving market, this strategy grew 50,000 capital to one million across two trends, with a return rate exceeding 1900%
Hedging insurance mechanism
Use 1% of capital to buy Put options while holding positions, practically hedging 80% of extreme risks. In the April 2024 black swan event, this strategy successfully salvaged 23% of account net value.
Empirical data on fatal traps
Holding positions for 4 hours: The probability of blowing up increases to 92%
High-frequency trading: Average 500 operations per month consumes 24% of capital
Greed in profit: Failure to take profit in time leads to 83% of account profit being given back
Four, the 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 annualized returns of over 400% by strict stop-loss (average loss of 1.5%) and trend capture (average profit of 15%).
Ultimate rule:
Single loss ≤ 2%
Annual trades ≤ 20
Profit-loss ratio ≥ 3:1
70% of the time, stay in cash and wait
The essence of the market is a probability game; smart traders use 2% risk to seize trend rewards. Remember: Control your losses, and profits will run. Establish a mechanical trading system that lets discipline replace emotional decision-making, which is the ultimate answer for continuous profit.
Why do contracts always blow up? It's not bad luck; you fundamentally don't understand the essence of trading! This article, condensing ten years of trading experience, presents low-risk principles that will completely overturn your understanding of contract trading — blowing up is never the market's fault, but a time bomb you buried yourself.
Three major truths that overturn understanding
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 certain student used 20x leverage to operate ETH, investing only 2% of capital each time, with three years of no blow-ups. Core formula: Real risk = Leverage multiplier × Position ratio.
Stop-loss ≠ Loss: The ultimate insurance for your account
During the 312 crash in 2024, 78% of blown accounts shared a common characteristic: a loss exceeding 5% but no stop-loss set. Professional traders' iron rule: A single loss should not exceed 2% of capital, equivalent to setting an 'electrical fuse' for the account.
Rolling positions ≠ All-in: The correct way to compound returns
Laddered position building model: Start with 10% for trial, use 10% of profits to add positions. With a capital of 50,000, the first position is 5,000 (10x leverage), and for every 10% profit, add 500. When BTC rises from 75,000 to 82,500, the total position only expands by 10%, but the safety margin increases by 30%.
Institution-level risk control model
Dynamic position formula
Total position ≤ (Capital × 2%) / (Stop-loss range × Leverage multiplier)
Example: With 50,000 capital, 2% stop-loss, and 10x leverage, the maximum position calculated is = 50000 × 0.02 / (0.02 × 10) = 5000
Three-stage take-profit method
① Close 1/3 at 20% profit ② Close another 1/3 at 50% profit ③ Move the remaining position's stop-loss (exit when breaking the 5-day line)
In the 2024 halving market, this strategy grew 50,000 capital to one million across two trends, with a return rate exceeding 1900%
Hedging insurance mechanism
Use 1% of capital to buy Put options while holding positions, practically hedging 80% of extreme risks. In the April 2024 black swan event, this strategy successfully salvaged 23% of account net value.
Empirical data on fatal traps
Holding positions for 4 hours: The probability of blowing up increases to 92%
High-frequency trading: Average 500 operations per month consumes 24% of capital
Greed in profit: Failure to take profit in time leads to 83% of account profit being given back
Four, the 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 annualized returns of over 400% by strict stop-loss (average loss of 1.5%) and trend capture (average profit of 15%).
Ultimate rule:
Single loss ≤ 2%
Annual trades ≤ 20
Profit-loss ratio ≥ 3:1
70% of the time, stay in cash and wait
The essence of the market is a probability game; smart traders use 2% risk to seize trend rewards. Remember: Control your losses, and profits will run. Establish a mechanical trading system that lets discipline replace emotional decision-making, which is the ultimate answer for continuous profit.

#山寨季何时到来？ #Strategy增持比特币 #加密市场回调 $ETH