Why do contracts always get liquidated? It's not bad luck; you simply don't understand the essence of trading! This article, which condenses ten years of trading experience into low-risk principles, will completely overturn your understanding of contract trading—liquidation is never the market's fault, but a time bomb you've planted yourself. #美国稳定币法案

Three Major Truths That Challenge Conventional Understanding

Leverage ≠ Risk: Position is the Lifeline

Using 1% position at 100x leverage, the actual risk is only equivalent to 1% of a full position in spot trading. A student operated ETH with 20x leverage, investing only 2% of the principal each time, with three years of zero liquidations. Core Formula: Actual Risk = Leverage Factor × Position Ratio

Stop Loss ≠ Loss: The Ultimate Insurance for Your Account

During the 312 crash in 2024, 78% of liquidated accounts shared a common feature: losses exceeded 5% without setting a stop loss. The professional trader's iron rule: single losses must not exceed 2% of the principal, equivalent to setting a 'circuit fuse' for the account.

Rolling Position ≠ All In: The Correct Way to Compound

Stepwise Positioning Model: Initial position 10% for trial, increase position by 10% of profits. For a 50,000 principal, the initial position is 5,000 (10x leverage), increase by 500 for every 10% profit.

Institutional-Level Risk Control Model

Dynamic Position Formula

Total Position ≤ (Principal × 2%) / (Stop Loss Margin × Leverage Factor)

Example: For a 50,000 principal, 2% stop loss, 10x leverage, the maximum position is 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 for remaining position (exit below the 5-day moving average)

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

Hedging Insurance Mechanism

When holding positions, use 1% of the principal to buy Put options, which can hedge 80% of extreme risks. During the April 2024 Black Swan event, this strategy successfully saved 23% of account net value.

Data Evidence of Fatal Traps

Holding a Position for 4 Hours: Probability of Liquidation Increased to 92%

High-Frequency Trading: Average 500 trades per month resulting in a 24% loss of principal

Mathematical Expression of Trading Essence

Expected Profit = (Win Rate × Average Profit) - (Loss Rate × Average Loss)

When setting a 2% stop loss and 20% profit target, a win rate of just 34% can achieve positive returns. Professional traders achieve an annualized return of over 400% by strictly adhering to stop losses (average loss of 1.5%) and capturing trends (average profit of 15%).

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