#数字资产生态回暖 The Truth About Contract Liquidation: Words from a Decade-Long Trader🔍

To be honest, liquidation has never been the market tricking you; it’s the trap you set for yourself.

**Leverage Is Not Evil by Itself**
100x leverage can still be sustainable; it depends on how you use it. What truly determines life or death is not how big the leverage number is, but how much principal you use.
The formula is simple: Actual risk = leverage × position size ratio. A 1% position with 100x leverage equals full exposure in spot trading. Understand? The line between life and death always lies in position management, not leverage!

**Stop Loss Is the Safety Valve of Your Account**
Don’t view stop loss as failure; see it as the fuse of your account. Limit each trade to a maximum loss of 2% of your principal. Sticking to this rule can keep you safe and active for ten years.

**Rolling Positions and Going All-In Are Two Different Things**
True position rolling means: using profits to add to your position, not risking all your capital at once. For example, starting with 50,000 principal, initially risking 10%, then after a 10% profit, add another 10%. This increases your marginal safety by 30%, without doubling the risk.

**How Institutions Survive Bear Markets**
Total position ≤ (Principal × 2%) / (Stop Loss Range × Leverage).
This formula isn’t made up; it’s standard risk control for institutions. For example: with 50,000 principal, a 2% stop loss, and 10x leverage, you can only open a position of at most 5,000. Feel that restraint.

**Profit-Taking Has Its Tricks**
Close one-third of your position at 20% profit; another third at 50%; set a trailing stop on the remaining position, and exit decisively if it breaks the 5-day moving average.
This way, you lock in most profits while still enjoying potential upside.

**Math Will Reveal the Truth**
Expected value = (Win Rate × Average Profit) - (Loss Rate × Average Loss).
As long as your stop loss is 2% and take profit is 20%, you can make money even with a win rate of just 34%.
Professional traders with annual returns of 4x rely on this discipline.

**The Final Rules — Memorize Them:**
📌 Single loss should not exceed 2%
📌 Do not make more than 20 trades per year
📌 Maintain a risk-reward ratio above 3:1
📌 Keep 70% of the time in cash, waiting for that 10% opportunity