Why do contracts always get liquidated? It's not bad luck; you simply don't understand the essence of trading! This article, encapsulating ten years of trading experience, presents low-risk rules that will completely change your understanding of contract trading — liquidation is never the market's fault, but a time bomb you planted yourself.

Leverage ≠ Risk: Position size is the lifeline

Core formula: Real risk = Leverage × Position ratio.

Stop-loss ≠ Loss: The ultimate insurance for your account

In the 312 crash of 2024, 78% of liquidated accounts shared a common characteristic: losses exceeded 5% without setting stop-loss. A professional trader's rule: a single loss should not exceed 2% of the principal, which is equivalent to setting a "circuit fuse" for your account.

Rolling positions ≠ All in: The correct way to compound

Laddered position building model: Initial position 10% for trial, add 10% of profits to position. Starting with 50,000 principal, initial position 5,000 (10x leverage), add 500 when profit increases by 10%. When BTC rises from 75,000 to 82,500, total position only expands by 10%, but safety margin increases by 30%.

Dynamic position formula

Total position ≤ (Principal × 2%) / (Stop-loss range × Leverage)

Example: 50,000 principal, 2% stop-loss, 10x leverage, maximum position calculated as = 50000 × 0.02 / (0.02 × 10) = 5000

Three-step profit-taking method

① Close 1/3 at 20% profit ② Close another 1/3 at 50% profit ③ Move stop-loss on remaining position (exit below 5-day line)

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

Deadly trap empirical data

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

High-frequency trading: Average of 500 trades per month results in a 24% loss of principal

Greed in profit: Failure to take timely profits leads to an 83% account profit drawdown

Four, Expression of the Essence of Trading

Expected profit = (Win rate × Average profit) - (Loss rate × Average loss)

When setting a 2% stop-loss and 20% take-profit, only a 34% win rate is needed to achieve positive returns. Professional traders achieve annualized returns of over 400% by strictly enforcing stop-loss (average loss of 1.5%) and trend capture (average profit of 15%).

Ultimate rules:

Single loss ≤ 2%

Annual trades ≤ 20

Win-loss ratio ≥ 3:1

70% of the time in cash waiting

The essence of the market is a probability game; smart traders use 2% risk to capture trend dividends. Remember: Control your losses, and profits will run. Establish a mechanical trading system, letting discipline replace emotional decision-making, which is the ultimate answer for sustained profitability.