Do you think getting liquidated is due to sudden market changes? Wrong! It’s because you pressed the "self-destruct button". After reading this, you will realize that all your past operations were actively seeking death.

1. Leverage is not the killer, the position is.
Fatal Misunderstanding: "100x Leverage = High Risk"
Truth: 100x leverage + 1% position = actual risk = 1x leverage full position
Example: A professional trader uses 50x leverage, but the position size is ≤0.5%. For three consecutive years, there is no Get Liquidated, and the annualized return exceeds 300%.
2. Stop-loss is not giving up, but a 'resurrection armor'.
In the 2024 May 19 crash, the common point of 83% of the Get Liquidated accounts: holding on despite losses exceeding 10%.
Single loss ≤ 1% of principal (institutional level standard), equivalent to equipping the account with a "liquidation shield"
3. Profit without increasing position = working hard for nothing
Wrong operation: ran away after making a profit, resulting in missing out on a 10x market.
Correct Strategy:
First Warehouse 5% (Trial and Error)
Every time you make a profit of 10%, use 20% of the profit to increase your position (compound interest snowball).
Case: In 2024, the SOL market, starting with a capital of 50,000 and rolling it to 500,000, took only 2 months.
Institutional-level risk control model (internal outflow of private equity)
1. Dynamic Position Calculation Formula
Max Position = (Principal × 1%) / (Stop Loss Margin × Leverage Multiplier)
Example: 100,000 principal, 1% stop loss, 20x leverage → Maximum position = 1,000 yuan
2. Three-level Take Profit Method (Maximize Profits)
① Profit 15% → Close Position 30% (Lock in Profit)
② Profit 30% → Rebalance 30% (reduce risk)
③ Remaining position → Move stop profit (exit when breaking the 4-hour EMA)
3. Hedging insurance strategies
Use 0.5% of the principal to buy Put options when holding positions (can recover 50% of losses in extreme market conditions)
In April 2024, the black swan event allowed a certain large holder to avoid a liquidation of 2 million.
The 3 Behaviors with the Highest Probability of Getting Liquidated (Have You Been Affected?)
"Carry a little longer" type → Carry the order for 4 hours, and the probability of liquidation soars by 92%
"Frequent Trading" type → Monthly average of 100 trades, fees eat up 20% of the principal
"Wanting to earn more" type → 83% of accounts incur losses due to greed and profit retracement.
The essence of trading: a math game, not gambling
Profit Formula:
Expected Value = (Win Rate × Average Profit) - (Loss Rate × Average Loss)
If you can do it:
Stop loss 1%, take profit 10%
A win rate of only 25% can achieve stable profits.
Professional Trader Secrets:
Single loss ≤1%
Annual trades ≤ 15 times (waiting for big opportunities)
Profit and Loss Ratio ≥ 5:1
Ultimate Survival Rule
Each loss ≤ 1% (absolute red line)
70% time in cash (patiently waiting for opportunities)
Only trade with a high profit-loss ratio (missing out is not a pity)
The market does not reward hard-working people, but rather those who know how to wait. Establish a mechanical trading system, allowing rules to replace emotions, so you can truly break free from the Get Liquidated curse.