"My Risk Management System: How to Never Liquidate Again"

I dare to say responsibly:

As long as your risk control is not written randomly, you will never liquidate again in your life.

The vast majority of people lose money in the crypto world, not because their direction is wrong, not because their skills are poor,

but because—

there is no risk control.

Or rather, there is risk control, but it is never executed.

And I went from consecutive 7 liquidations to now 3 years and 0 liquidations,

Relying on a complete, mechanically executed risk management system.

Today I will fully break down this system for you.

As long as you follow along after watching, your account will go from 'can explode → hard to explode → will not explode'.

1. My core principle of risk control: If you can avoid losses, do so; if you can minimize losses, do so.

Risk control is not for making money.

Risk control is for survival.

Those who survive will naturally earn.

How can those who are dead earn?

So, my core risk control can be summed up in one sentence:

Do not let any single order have the possibility to take me down.

As long as you establish this awareness, your life begins to have value.

2. My position system: Always divided into 5 parts, only moving 1 part.

In the past, I faced liquidation because of:

One order would go up 50%, 70%, or even fully invested.

Now my approach is:

✔ Always divide the capital into 5 parts.

For example, if you have 1000U, then each portion is 200U.

✔ Each trade only uses 1 part (20%).

No matter how accurate the opportunity, I absolutely will not increase to 2 parts.

✔ This means: If one order goes wrong, you will lose at most 2-4% of your total capital.

You cannot explode because of one order.

One order cannot kill me; it is my core bottom line.

With this rule, I directly bid farewell to liquidation.

3. My stop-loss system: Write it down before entering the market, rather than thinking about it after losing.

Why don't retail investors execute stop losses?

Because the situation only starts to be evaluated after the position is opened.

But I have an ironclad rule:

✔ Do not write stop-loss points, do not enter the market.

Stop-losses are decided before opening positions.

It is not about considering whether to stop-loss after losing.

✔ Stop-loss range: single loss not exceeding 1%-3%.

For example, an account of 1000U.

I allow a single loss of only 10 – 30U.

You might say:

"Isn't that too little?"

But true experts never rely on making 100,000 U in one go; rather, they rely on countless small losses + big gains.

I lose less to win when the big market comes —

Dare to strike hard.

4. I never allow two consecutive losses.

You must know:

Losses do not come from wrong direction, but from emotions.

When you have two consecutive losses, your state must be:

Want to recover losses.

Want to bet on the next order.

Want to quickly recover.

Nervous mindset.

Unstable decision-making.

And I have a rule:

✔ Continuous losses of 2 orders, directly enforced rest, no trading for the day.

No matter how good the opportunity is, how tempting the K-line is, or how beautiful the order book is,

I ignore all of it.

This is one of the most difficult risk controls for me in my life,

but it is also the watershed that turned me from a 'loser' to a 'stable profit maker.'

Stop losses are not about fleeing, but about professionalism.

5. I only place orders in 'controllable risk areas,' not chasing orders.

Those who face liquidation all have one common characteristic:

Cannot control oneself and like to chase orders.

But chasing orders is

the weakest, most dangerous, and most foolish behavior in all risk control systems.

Currently, my trading has only two methods:

① Key support for long positions / resistance area for short positions.

Always ambush in advance, do not chase after the main force's tail.

② Only act at points where 'low risk, low cost, and clear stop-loss' exist.

I force myself to only take positions where 'even if I wanted to lose, I couldn't lose too much.'

The more outrageous the price, the less I act.

That's why I can hardly suffer large losses now.

6. I break down the maximum liquidation risk into 'fragments' instead of betting in one go.

Many people trade as if they are risking their lives:

Increase positions when the price rises, add positions when it falls, double down against the trend, and take one more gamble.

But I am like this now:

✔ Profit addition only increases by '40% of profits.'

It is not about adding principal, but adding profits.

✔ Increasing positions must follow the trend, not go against it.

Do not bottom-fish, do not bet on rebounds.

✔ Only roll over when the trend is stable.

Do not treat rolling positions as gambling, but as compound interest.

With this system, my account rises like a staircase.

7. I have 'loss boundaries' and 'maximum drawdown limits.'

This rule is the key to my stable profitability.

I define for myself:

✔ Daily maximum loss cannot exceed 5%.

Reach 5% → Stop trading.

Reach 8% → Stop for 2 days.

✔ Maximum weekly drawdown not exceeding 12%.

More than → Pause all trading for a week.

Do you know what this means?

It means my account

will never fall off a cliff.

Others are 'liquidated once and it's all gone.'

I am 'at most losing a little, continue to trade the next week.'

Who do you think can go further?

8. The most important thing: I treat the market as a storm and myself as the captain.

Most people enter the market with the expectation of 'must make money.'

But I am different:

My mindset is —

I did not come to take risks, but to execute the system.

Do you know what this sentence changed for me?

Changed my:

Emotions.

Impulsiveness.

Luck.

Fear.

Greed.

I no longer gamble my life with the market, nor do I gamble against myself.

I only do one thing:

Execution system.

Leave the rest to probability and time.

The more stable the execution, the further away from liquidation, and the closer to profit.

Conclusion: You do not need to become an expert; you just need to become an 'ordinary person with risk control.'

You may feel that this system is complex,

but the true core can be summed up in one sentence:

You will never die because of one wrong order, nor will you ruin everything because of one impulse.

By doing this, you have already outperformed 95% of people in the crypto space.