Why do contract trades always get liquidated? It's not that the market is ruthless, but you have ignored these fatal rules
Liquidation is never an accidental event, but an inevitable result of cognitive defects in trading.
Three major trading truths you must recognize
Leverage is not a monster: position management is the core
100x leverage paired with 1% position, the actual risk is lower than being fully invested in spot. A professional trader uses 50x leverage to trade BTC, with each position only occupying 0.5% of the capital, maintaining a zero liquidation record for five years. Key formula: actual risk = leverage × position ratio.
Stop loss is not giving up: it is survival wisdom
The 2023 LUNA crash event shows that 83% of liquidated accounts have the bad habit of 'holding positions'. Wall Street's trading iron rule: single loss must be controlled within 1.5% of total capital, this is the account's 'emergency braking system'.
Adding positions is not gambling: it is a scientific profit amplification technique
Pyramid building model: first position 5% for exploration, add 3% after profit. 100,000 capital, first position 5,000 yuan (20x leverage), add 3,000 yuan for every 15% profit. When ETH rises from 3000 to 3450, total position only increases by 8%, but the safety cushion thickens by 40%.
Professional-level risk control system
Intelligent position calculation formula
Maximum position = (capital × 1.5%) / (stop loss space × leverage)
Example: 100,000 capital, 1.5% stop loss, 20x leverage, maximum position calculated as 100000×0.015/(0.015×20)=5000 yuan
Multi-stage profit-taking strategy
① Reduce position by 1/4 after 15% profit ② Reduce by another 1/3 after 30% profit ③ Use dynamic profit-taking for remaining position (exit if it drops below the 10-day moving average)
In the 2023 bull market cycle, this plan turned 30,000 capital into over a million during three trends, achieving a return rate of 3200%
Compound hedging plan
While holding a position, use 0.8% of the funds to buy reverse options, data shows it can offset 75% of extreme market losses. In the black swan event in September 2023, this strategy successfully preserved 18% of account value.
Trading trap big data
ADA
Holding a position for more than 2 hours: liquidation probability skyrockets to 85% BTC
Overtrading: 300 trades per month erodes 18% of the principal
Fear of losing profits: 76% of accounts that fail to lock in profits on time experience significant drawdowns
Quantitative expression of the essence of trading
SOL
Expected return = (winning probability × average profit) - (losing probability × average loss)
When setting a 1.5% stop loss and 18% profit target, only a 36% win rate is needed to achieve stable profits. Professional traders achieve 300% annual returns through precise stop-losses (average loss of 1.2%) and trend capturing (average gain of 12%) #Binance Contract Championship
Golden trading rules:
Single loss ≤ 1.5%
Annual operations ≤ 15 times
Return risk ratio ≥ 4:1
Maintain a vacant position 80% of the time to observe#加密市场回暖
I am Az Financial, specializing in medium-short term contract trading, regularly sharing investment tips and detailed strategy teaching points @阿泽财经 ㅤ Come!
