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

Three Major Truths that Overturn Perceptions

Leverage ≠ Risk: Position Size is the Lifeline

With 100x leverage using 1% position, the actual risk is only equivalent to #Bitcoin of a full spot position. A student used 20x leverage to trade ETH, investing only 2% of principal each time, with three years without liquidation. Core Formula: Real Risk = Leverage Multiplier × Position Ratio.

Stop Loss ≠ Loss: The Ultimate Insurance for Your Account

During the 312 crash in 2024, a common characteristic of 78% of liquidated accounts: losses exceeded 5% without setting stop loss. Professional traders' iron rule: single losses must not exceed 2% of principal, equivalent to setting an 'electrical fuse' for the account.

Rolling Positions ≠ All-In: The Right Way to Compound Interest

Ladder Positioning Model: First position 10% for trial, use 10% of profit to increase position. With a 50,000 principal, the first position is 5,000 (10x leverage), adding 500 for every 10% profit. When BTC rises from 75,000 to 82,500, total position only increases by 10%, but safety margin increases by 30%.

Institutional-Level Risk Control Model

Dynamic Position Formula

Total Position Size ≤ (Principal × 2%) / (Stop Loss Width × Leverage Multiplier)

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

Three-Step Take Profit Method

① Close 1/3 at 20% profit ② Close another 1/3 at 50% profit ③ Move stop loss for remaining position (exit if it breaks the 5-day line)

In the 2024 halving market, this strategy increased a 50,000 principal to a million during two trends, yielding over 1900%.

Hedging Insurance Mechanism

Using 1% of principal to buy Put options while holding positions can hedge against 80% of extreme risks. During the black swan event in April 2024, this strategy successfully salvaged 23% of account net value.

Deadly Trap Data Empirical Evidence

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

High-Frequency Trading: Average 500 Trades per Month Consumes 24% of Principal

Profit Greed: Not timely taking profit resulted in 83% account profit retracement.

Fourth, Mathematical Expression of the Essence of Trading

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

When setting a 2% stop loss and a 20% take profit, only a 34% win rate is needed to achieve positive returns. Professional traders achieve over 400% annualized returns through strict stop losses (average loss of 1.5%) and trend capturing (average profit of 15%).

Ultimate Rule:

Single Loss ≤ 2%

Annual Trades ≤ 20

Profit and Loss Ratio ≥ 3:1

70% of the Time in Cash Waiting

Remember: Control your losses, and profits will run. Establish a mechanical trading system to let discipline replace emotional decision-making, which is the ultimate answer to sustained profitability.#目标财富自由