Do you often go all in and end up with a blown mindset? Perhaps what you lack is not skill, but an effective position management strategy! Today, I will share 4 very practical position management methods in cryptocurrency contract trading, especially suitable for beginners and investors with fluctuating mindsets. Remember to like ❤️ and bookmark ⭐, and learn repeatedly!

📊 Fixed Proportion Method—suitable for beginners

Core Principle: Allocate margin in fixed proportions, always avoid full positions, and reserve funds for emergencies.

For example, use the "Half Position Rule": only use half of the margin to open a position, leaving half as backup.

Practical Case: If the account has 10,000 USDT, only use a maximum of 5,000 USDT to open a position. This way, there are funds to add to the position during a downturn, and even if liquidation occurs, it won't lead to a total loss.

📈 Pyramid Positioning Method—Capture Trend Markets

Core Principle: Only add to the position when profitable, with decreasing amounts, forming a "large base, small peak" pyramid structure.

Correct Operation: Open the first position at 50%, add 30% after a 10% price increase, then add 20% after another 10% increase, ensuring that the holding cost is always below the market price.

Prohibition of Inverted Pyramid: Start with a small position to test; increasing the position after a loss—this is a major reason many traders face liquidation!

⚖️ Martingale Strategy (use with caution!)—High risk, high reward

Core Logic: Double the position after each loss, and as long as you have one profit, you can recover all previous losses.

Important Reminder: This strategy is highly prone to liquidation in a one-sided market! It is only suitable for a sideways market and must strictly set stop-losses.

Improvement Plan: Limit the maximum number of consecutive positions (e.g., a maximum of 5 times doubling) and set a total capital stop-loss line.

🧮 Kelly Criterion—Scientific Calculation of Position Size

Core Logic: Calculate the optimal position for each trade based on the win rate and odds, pursuing long-term compound growth.

Formula: f = (bp - q) / b

(f: position ratio, b: odds, p: win rate, q=1-p: loss rate)

Example: If the win rate is 60% and the odds are 1.5:1, then f=(1.5*0.6-0.4)/1.5=33.3%—this position can use a maximum of 33% of the capital.

🔐 Essential Risk Control Principles for Cryptocurrency Contracts:

1. Individual losses should not exceed 2% of total capital.

2. Never leverage fully—leverage is a double-edged sword; it can amplify profits if used well, but can lead to total loss if misused.

3. A stop-loss must be set! A stop-loss must be set! A stop-loss must be set!

4. Regularly withdraw funds—only the money withdrawn to your wallet is truly earned money.

💡 Summary:

Position management is the bulletproof vest of a trader.

In this high-risk cryptocurrency market, surviving is more important than how much money you make!

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