Recently, I have been working on a trading system with a 20-30 times leverage and stop-loss. At first, I was lucky and made 60% of my total capital, with the highest point actually doubling, but according to the trading system, that wasn't the exit point, so I ended up walking away with a 60% profit.
Then, during the Asian trading hours, I encountered three consecutive days of sideways movement, and three days of continuous stop-losses made me feel nauseous.
To summarize the problems I encountered:
If the first trade has a capital of 1000 USDT and opens a contract with a nominal value of 20000 USDT at 20 times leverage, and it hits the stop-loss at 10%,
For the second trade, I can only open a contract worth 18000 USDT at 20 times leverage, and if luck is not on my side and it hits the stop-loss again at 10%,
For the third trade, I can only open a contract worth 16000 USDT. And if I want to recover all the losses from the first two leveraged trades on the third trade, I would need to earn a 25% profit.
Continuous stop-losses with leverage are simply a nightmare.