Total liquidation of contracts? Don't blame luck, it's about not doing risk control well

Experiencing total liquidation of contracts is really not about bad luck; the core issue is not grasping the key to trading — risk control! This low-risk strategy summarized from ten years of trading experience helps you see clearly: liquidation is never the market's fault, but rather your failure to avoid risk zones.

1. Correcting 3 misconceptions

1. Leverage is not dangerous; position size is key: Real risk = leverage × position size. With 100 times leverage and 1% position size, the risk is only equivalent to holding 1% in spot trading. Some students used 20 times leverage on ETH, investing 2% of their principal each time, and didn't face liquidation in three years; controlling the position is the core.

2. Stop-loss is not a loss; it's an account "safety valve": During the crash on March 12, 2024, 78% of liquidated accounts had losses exceeding 5% but still held on. Professional traders have a strict rule: a single loss should never exceed 2% of the principal; maintaining this point will prevent total loss in one go.

3. Rolling positions ≠ all-in, use profits to increase positions: With a principal of 50,000, the first position can be 5,000 (10 times leverage), and for every 10% profit, use 500 in profit to increase the position. For example, if BTC rises from 75,000 to 82,500, the total position only increases by 10%, but the safety margin increases by 30%.

2. 3 institutional-level risk control models

1. Dynamic position formula: Total position ≤ (Principal × 2%) / (Stop-loss percentage × Leverage). With a principal of 50,000, 2% stop-loss, and 10 times leverage, the maximum position = 50000 × 0.02 / (0.02 × 10) = 5000, which does not exceed the limit.

2. Three-stage profit-taking method: Take profit of 1/3 at 20% gain, another 1/3 at 50% gain, and exit if the remaining drops below the 5-day moving average. During the 2024 halving market, some turned a principal of 50,000 into a million using this method, achieving a return rate of over 1900%.

3. Avoiding 3 traps: Holding a position for 4 hours has a 92% liquidation probability; trading 500 times a month consumes 24% of the principal; being greedy for profits leads to 83% of accounts giving back profits.

3. The essence of trading: calculating winning probabilities

Expected profit = (Win rate × Average profit) - (Loss rate × Average loss). With a 2% stop-loss and 20% take profit, a win rate of 34% can lead to profits. Professional traders rely on strict stop-loss (average loss of 1.5%) and trend capture (average profit of 15%) to achieve an annualized return of over 400%.

4. The ultimate 4 iron rules

• Single loss ≤ 2%

• Annual trades ≤ 20

• Profit-loss ratio ≥ 3:1

• 70% of the time stay in cash waiting for opportunities

The market is a probability game; smart traders never bet on big risks but use 2% risk to earn trend profits.

#ETH走势分析 $WLFI #比特币远古巨鲸持续出清