Position Management Techniques from 2000U to 50,000U: 5 Major Rules to Avoid Liquidation Traps

In 2024, through structured position management, the initial capital of 2000U will be operated to 52,000U, with the maximum drawdown controlled within 28%.

The core of this system lies in balancing risk layering and opportunity capture, sharing five practical rules:

1. Four-Dimensional Position Distribution System

Divide the principal into 4 equal parts, using 1-2 parts for each operation. If stop-loss is triggered twice in a row, the remaining 65% of the principal can effectively suppress emotional trading.

The initial position ratio is strictly controlled within 25%, and stop-loss is executed immediately upon loss.

2. Asymmetric Risk-Reward Ratio

Set a floating stop-loss of 6%-10%, with a profit target of at least 2.5 times the risk.

Example: Open a position in BTC with 3000U, set the stop-loss line at 180U (6%), when profit reaches 450U (15%), start taking profits in batches. Even with a win rate of only 45%, a positive expected value can still be achieved in the long run.

3. Profit Reinvestment Strategy

After each profit, reinvest only 40% of the profit. For example, if you earn 800U from 3000U, the next investment will be 3200U (initial capital 3000U + profit 200U).

This method prevents a single drawdown from consuming all gains; a real case achieved 3.8 times net growth in value through this strategy during the PEPE trend.

4. Trading Frequency Control

85% of account losses come from over-trading; only intervene at key price breakouts or market sentiment lows.

For example, before the Ethereum Shanghai upgrade in April 2024, monitor whale address movements to position long near 2100U.

5. Trend Forecasting System

Combine the movements of on-chain whale addresses with abnormal fluctuations in the derivatives market to proactively position potential coins. In June 2024, by observing a sharp drop in the funding rate of BNM perpetual contracts, accurately capture the main upward wave of SOL from 380U to 620U.

Core Discipline:

Mandatory break after 3 consecutive days of loss, with a maximum single-day loss not exceeding 8% of total principal, and monthly review of trading distribution to optimize entry points.

Rules for Survival in the Crypto World: It is more important to survive longer than to earn quickly. When you can reflexively cut positions, adhere to stop-loss discipline, and manage emotions, steady expansion of small capital will no longer be a game of luck.

Remember, true opportunities for sudden wealth are always reserved for those who remain rational while others panic.