One strategy you can use—based on simple math—to reduce liquidation risk when trading $RAVE or similar low-cap tokens:
Let’s say you want to open a short position on $RAVE with $1000.
Instead of going all-in on one side, use hedge mode:
Open a long position with $1000
At the same price, open a short position with $1200
This creates a slightly heavier bias toward the short side while still protecting you from sudden upward spikes
Why this works:
Your liquidation price becomes safer due to the hedge
• If the price pumps, your long helps absorb losses
• If the price eventually drops (which often happens with tokens like $STO, $COAI, $ARIA), your extra $200 short position becomes profit
In the long run, this kind of balanced setup can help you survive volatility and avoid getting wiped out by sudden spikes. It’s a lower-risk, lower-profit approach but more sustainable over time compared to one-sided trades that can get liquidated quickly.
Also, use a 2× upper target (TP) on your long position.
For example:
• Set a high TP on the long (e.g., +$30 or a strong resistance level)
• This target is unlikely to hit, but it acts as a safety layer
How it plays out:
• If the price somehow pumps hard and hits that TP, your overall loss stays limited (around ~20%)
• If the price drops hard (which is more likely in these tokens), your heavier short position can return around ~20% profit
So mathematically, the probability favors you:
• Lower chance of hitting the long TP
• Higher chance of downside move → higher probability of profit
This makes it a probability-based strategy focused on survival and consistency rather than chasing big wins.
