《Core Rules of Low-Risk Contract Trading》

1. Three Major Cognitive Disruptions

1. The Truth of Leverage: Risk = Leverage × Position

• 100x leverage + 1% position = 1% risk in spot trading

• Example: 20x leverage + 2% position, three years without liquidation

2. The Essence of Stop Loss: Single loss ≤ 2% of principal

• During the 312 crash, 78% of liquidated traders lost over 5% without stopping loss

3. Rolling Position Strategy:

Initial position 10% → Profit 10% increases position by 10%

Example: 50,000 principal, 10x leverage, BTC 75000 → 82500

Position only increases by 10%, safety margin increases by 30%

2. Simplified Risk Control Formula

1. Dynamic Position:

Maximum Position = (Principal × 2%) / (Stop Loss Range × Leverage)

Example: 50,000 / 2% stop loss / 10x leverage = 5,000 yuan

2. Three-Stage Take Profit:

① 20% close 1/3 ② 50% close 1/3 ③ Remaining position exits below the 5-day line

3. Fatal Trap Data

• Holding a position for 4 hours → 92% liquidation rate

• Average of 500 trades per month → 24% capital loss

• Not taking profit → 83% profit retracement

4. Ultimate Trading Formula

Profit Expectation = (Win Rate × Average Gain) - (Loss Rate × Average Loss)

Execution Standards:

• Single loss ≤ 2%

• Annual trades ≤ 20

• Profit-loss ratio ≥ 3:1

• 70% of the time in cash