Attention all about total liquidation of contracts! Ten years of trading experience summarized
👇
Liquidation is not a market issue, but a 'time bomb' you have buried yourself.
1. Leverage ≠ Risk
100x leverage can be safe as long as you control your position.
Actual risk = Leverage × Position Ratio
1% position + 100x leverage = the risk of being fully invested in spot.
👉
The line of life and death is never in leverage, but in position!
2. Stop-loss ≠ Loss
A stop-loss is the fuse of your account.
Single loss ≤ 2% of capital, this iron rule can keep you from liquidation for ten years.
3. Rolling position ≠ All-in
Using profit to increase your position is called rolling position.
Example: 50,000 capital, initial position 10%, profit 10% to increase position by 10%.
This safely increases the margin by 30%, rather than doubling the risk.
4. Institutional-level risk control formula
Total position ≤ (Capital × 2%) / (Stop-loss range × Leverage)
📌
Example: 50,000 capital, 2% stop-loss, 10x leverage → Maximum position can only be 5,000!
5. Three steps to take profit
① Take profit 20% close 1/3
② Take profit 50% close another 1/3
③ Move stop-loss for remaining position (exit if it breaks the 5-day line)
6. Core trading logic
Expected value = (Win rate × Profit) - (Loss rate × Loss)
As long as stop-loss is 2% and take profit is 20%, a win rate of 34% can earn money!
Professional players rely on this mathematical discipline for an annual return of 400%.
Ultimate rules:
• Single loss ≤ 2%
• Annual trades ≤ 20
• Profit-loss ratio ≥ 3:1
