The Science of Contract Leverage: Go Hard or Go Home

Last night, a brother asked me if 50x leverage is reasonable. I told him directly: "Leverage is like parachuting; either bring a backup parachute (100x) or don't go up on the roof (1x)." This may sound rough, but it makes sense.

The most dangerous aspect of perpetual contracts is that they create the illusion of being able to hold forever. But remember, as long as you don't get liquidated, your position can stay alive indefinitely—this is a sweet trap.

Regarding leverage multiples, my practical experience is:

100x is the way to go.

The margin must be enough to withstand three extreme fluctuations.

Stop-loss must be more decisive than a clingy dog breaking off contact.

Take profits at 5% and exit in batches; don’t be like the leeks waiting to break even.

The secret to making $50-$100 daily with a $5000 capital:

Always use isolated margin mode.

Control each stop-loss within $100 (2% principle).

Take half of your principal back when you reach 3% profit.

Let the remaining profits run (but not exceeding 5%).

Remember: High leverage is not for gambling; it is for precise targeting. It's like using a sniper rifle to shoot sparrows; you have to calculate wind speed and distance for a one-shot kill. Those who say 10x is stable are essentially using a cannon to shoot mosquitoes, wasting ammunition and easily hurting themselves.