Mathematical discipline is the true protective talisman in the crypto world.
I remember the year I first started, watching a big brother use 100 times leverage to triple his money in a bull market in just one day. That kind of madness made me mistakenly think this was the norm in trading. As a result, less than a month later, he disappeared from all the major trading groups—liquidated and out.
Eight years have passed, and I have seen too many similar plots replayed. The truth is: the market never actively targets you; most tragedies are self-inflicted.
Today, these 6 survival rules may protect your account better than any technical analysis.
01 Leverage: I won't take the blame!
Many people feel that '100x leverage' is a death wish. But have you thought about it? The real killer is not the leverage itself, but the size of your position.
I have a simple formula: risk = leverage × position.
For example: 1% position with 100x leverage, the actual risk is equivalent to being fully invested in spot. And what about a 100% position with 10x leverage? That means if the price reverses by 10%, you may face forced liquidation.
Position management is your lifeline. My own iron rule is: the initial position of any single trade should not exceed 10% of total funds. This is not conservatism, but a way to live longer.
02 Stop loss: It's not about giving up, it's about staying alive!
I call the stop loss the 'fuse' of the account. When a circuit shorts, the fuse blowing is not meant to make things difficult for you, but to prevent the whole house from burning down.
In August 2024, when Bitcoin fell below $50,000, 210,000 people were liquidated, with a liquidation amount reaching $820 million. Those 'tough guys' who refused to stop loss were ultimately forced to close their positions by the market—leaving them with nothing.
My stop loss strategy is very simple: a single loss must not exceed 2% of the principal. This means that even if I lose 10 times in a row, I still retain 80% of my fighting capital. This is not just a rule; it is a trader's life-saving card.
03 Rolling positions: Use profits as fuel, don't burn your principal!
Using principal to gamble is for gamblers; using profits to increase positions is for players.
My approach is: start with a principal of 50,000, only open 10% for the first position. When this trade profits 10%, I use the money earned to add another 10% to the position. This way, the margin of safety increases by 30%, but the risk decreases.
Look at those investors who were liquidated when Bitcoin first broke through $100,000—despite the price soaring, 210,000 people were still liquidated because they blindly chased the price at high levels and ignored the risks. Don't let the fear of missing out (FOMO) dictate your decisions.
04 Risk Control Code: Just copy it and use it
The risk control of institutional traders is not mysticism, but simple mathematics:
Total position ≤ (principal × 2%) / (stop loss margin × leverage).
For example: with a principal of 50,000, a 2% stop loss margin, and 10x leverage, calculate that you can only open a position of up to 5,000. This formula has helped me avoid countless crashes, including the severe volatility of Bitcoin after the Federal Reserve cut interest rates in September 2024.
Leverage trading amplifies profits, but also amplifies risks. Many investors tend to use leverage to gain greater returns when they are bullish or bearish, but once the market fluctuates in the opposite direction, the risk of liquidation increases significantly.
05 Take profit in three steps, say goodbye to roller coasters
Take profit and stop loss are equally important. My three-step take profit method:
Close 1/3 of the position when profits reach 20%, to first get the principal back into your pocket.
Close 1/3 of the position when profits reach 50% to lock in most of the profits.
Set a trailing stop for the remaining position; leave the market when it breaks below the 5-day moving average, allowing profits to run.
This strategy is especially important in the highly volatile cryptocurrency market. For example, when Bitcoin hit a historical high of $124,000 in August 2025, although the price broke the previous high, over 100,000 people were still liquidated within 24 hours, with a liquidation amount of $474 million. This indicates that even in a bull market, not knowing when to take profits can lead to huge risks.
06 Trading Core: Don’t rely on feelings, rely on numbers!
The expected value formula tells you the secret to long-term profitability: expected value = (win rate × average profit) - (loss rate × average loss).
As long as you adhere to the principle of 'stop loss 2%, take profit 20%', even if the win rate is only 34%, you will still be a winner in the long run. The secret of professional traders is not accurate predictions, but strictly executing mathematical discipline.
My survival rule (recommended to screenshot and save)
Single loss ≤ 2% (this is the red line, must not be broken)
Annual trades ≤ 20 (less is more, quality over quantity)
Risk-reward ratio ≥ 3:1 (small losses, big profits, to achieve long-term gains)
70% of the time in cash (waiting is the best strategy)
The volatility of the cryptocurrency market is much higher than that of traditional assets. Investors should conduct sufficient knowledge preparation and risk assessment before participating, to avoid making emotional investment decisions due to short-term market fluctuations.
The market is always full of opportunities, but lacks players who survive to the end. Remember, controlling risk is more important than pursuing profits. This requires discipline and patience. Follow Ake to learn more first-hand information and insights about the cryptocurrency world, becoming your guide in the crypto space; learning is your greatest wealth!#巨鲸动向 #ETH走势分析 $ETH
