Brothers! I entered the contract market with a capital of 10,000 and within a week, my account soared to 300,000!
It's not metaphysics, it's not insider trading from the market makers. Today, I will share with you the "bloody rules" that I exchanged for 20 times of liquidation!
Especially the last point, which is now secretly used by those who know.
1. Leverage ≠ Risk: Position Size is the Lifeline
Using 1% position size with 100x leverage, the actual risk is only equivalent to 1% of a full spot position. A certain student used 20x leverage to trade ETH, investing only 2% of capital each time, with three years of zero liquidation record. Core formula: Actual Risk = Leverage × Position Size Ratio. #BTC
2. Rolling Positions ≠ All-in: The Correct Way to Compound
Ladder Building Model: Initial position 10% for trial, adding 10% of profits for more positions. With a capital of 50,000, the initial 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%.
3. Stop Loss ≠ Loss: The Ultimate Insurance for the Account
In the crash on March 12, 2024, the common characteristic of 78% of liquidated accounts: losses exceeding 5% without setting a stop loss. Professional trader's iron rule: Single loss must not exceed 2% of capital, equivalent to setting a "circuit fuse" for the account.
4. Risk Control Model
Dynamic Position Formula
Total Position ≤ (Capital × 2%) / (Stop Loss Margin × Leverage)
Example: With a capital of 50,000, a stop loss of 2%, and 10x leverage, the maximum position is calculated as 50,000 × 0.02 / (0.02 × 10) = 5,000.
Three-Stage Take Profit Method
① Take profit 1/3 at 20% profit ② Take profit another 1/3 at 50% profit ③ Move stop loss for remaining position (exit if it breaks the 5-day line) #Canada launches Solana ETF
Expected Profit Value = (Win Rate × Average Profit) - (Loss Rate × Average Loss). With a stop loss of 2% and a take profit of 20%, only a win rate of 34% is needed to achieve a positive return. Professional traders achieve an annualized return of 400% through strict stop losses (average loss of 1.5%) and trend capturing (average profit of 15%) + #Getting Rich in Crypto Circle
Ultimate Rule:
Single Loss ≤ 2%
Annual Trades ≤ 20
Profit/Loss Ratio ≥ 3:1
70% of the Time in Cash Waiting
Remember: Control your losses, and profits will naturally run.
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