Why do contracts always get liquidated? It's not bad luck; it's that you don't understand the essence of trading!

Liquidation is never the market's fault; it is a time bomb you buried yourself.

Three major truths that overturn cognition

Leverage ≠ risk: position size is the lifeline

With 100x leverage using 1% position, the actual risk is only equivalent to 1% of a fully leveraged spot position. A student used 20x leverage to operate ETH, investing only 2% of capital each time, with three years of no liquidation. Core formula: real risk = leverage multiple × position ratio.

Stop loss ≠ loss: the ultimate insurance for the account

In the 2024 March 12 crash, the common characteristic of 78% of liquidated accounts: losses exceeding 5% without a stop loss. Professional trader's iron rule: a single loss must not exceed 2% of capital, equivalent to setting an 'electrical circuit fuse' for the account.

Rolling positions ≠ all in: the correct way to open compound interest

Ladder position building model: the first position is 10% for trial and error, using 10% of profits to add positions. With a capital of 50,000, the first position is 5000 yuan (10x leverage). For every 10% profit, add 500 yuan. When BTC rises from 75000 to 82500, 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 range × leverage multiple)

Example: With a capital of 50,000, 2% stop loss, and 10x leverage, the maximum position = 50000×0.02/(0.02×10)=5000 yuan

Three-step 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 breaking the 5-day line)

In the 2024 halving market, this strategy increased a capital of 50,000 to one million in two trends, achieving a return of over 1900%

Hedging insurance mechanism

Use 1% of capital to buy Put options while holding positions, which can hedge against 80% of extreme risks. In the April 2024 black swan event, this strategy successfully saved 23% of the account's net value.

Deadly trap data empirical evidence$XRP

Holding a position for 4 hours: the probability of liquidation increases to 92%$BTC

High-frequency trading: average 500 operations per month consumes 24% of capital

Profit greed: 83% of the account's profits were given back due to not taking profits in time

Four, the mathematical expression of the essence of trading$ETH

Expected profit = (win rate × average profit) - (loss rate × average loss)

When setting a 2% stop loss and a 20% take profit, a win rate of only 34% can achieve positive returns. Professional traders achieve annualized returns of over 400% through strict stop losses (average loss of 1.5%) and trend capturing (average profit of 15%)#币安HODLer空投HYPER

Ultimate rule:

Single loss ≤ 2%

Annual trades ≤ 20

Win-loss ratio ≥ 3:1

70% of the time in cash waiting#加密市场反弹

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