Look at the total liquidation of contracts! Here’s some solid information for you!

Why play with total liquidation of contracts? It's not bad luck; it's that you fundamentally don't understand the essence of trading! Liquidation is never the market's fault, but rather a time bomb you have buried yourself.

Leverage ≠ Risk: Position Size is the Lifeline

Using 1% position size with 100x leverage results in actual risk equivalent to #BTC #ETH 1% of a fully invested spot position. One student operated ETH with 20x leverage, investing only 2% of capital each time, and had three years without liquidation. Core formula: Real risk = Leverage multiplier × Position ratio.

Stop Loss ≠ Loss: The Ultimate Insurance for Accounts

During the market crash on March 12, 2024, a common characteristic of 78% of liquidated accounts was that they did not set stop losses despite losses exceeding 5%. A professional trader's iron rule: A single loss must not exceed 5% of the capital, which is equivalent to setting a "circuit fuse" for the account.

Rolling Positions ≠ All-In: The Correct Way to Compound

Step-by-step Position Building Model: Initial position 10% for trial and error, increase position by 10% of profits. With 50,000 capital, the initial position is 5,000 (10x leverage), and every time there is a 10% profit, increase the position by 500. When BTC rises from 75,000 to 82,500, the total position only expands by 10%, but the safety margin increases by 30%.

Institutional-Level Risk Control Model

Dynamic Position Formula

Total Position ≤ (Capital × 2%) / (Stop Loss Margin × 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 of the position at 20% profit ② Close another 1/3 at 50% profit ③ Move stop loss for the remaining position (exit if breaking the 5-day line)

In the halving market of 2024, this strategy increased a capital of 50,000 to a million across two trends, with a return rate exceeding 1900%.

Hedging Insurance Mechanism

When holding positions, use 1% of capital to buy Put options, which can hedge against 80% of extreme risks based on practical tests. In the black swan event in April 2024, this strategy successfully saved 23% of account net value.

Deadly Trap Data Evidence

Holding a position for 4 hours: Probability of liquidation increases to 92%

High-Frequency Trading: Monthly average of 500 operations results in a loss of 24% of capital

Greed for Profit: Failure to take timely profits results in 83% of the account's profits being given back

Fourth, the Mathematical Expression of the Essence of Trading

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 an annualized return of over 400% through strict stop-loss (average loss of 1.5%) and trend capture (average profit of 15%).

The essence of the market is a game of probabilities; smart traders take a 2% risk to capture trend bonuses.