Position management in the crypto world is the core insight for controlling risk:

1. Strict control of single position ratio
Never fully open a position, and a single trade should not exceed 5%-10% of the total capital (reduce to 2%-3% for highly volatile coins). For example, with a principal of 100,000, a single trade should be within 5,000, leaving room for additional purchases.

2. Leverage multiple matches volatility
Leverage recommendations for mainstream coins like BTC/ETH are 5-10 times, while for altcoins it should not exceed 3 times. High leverage requires stricter stop losses; for example, when using 20 times leverage, the stop loss point should be reduced to within 1%.

3. Dynamic Take Profit and Stop Loss
Use mobile stop profit: When floating profit exceeds 5%, move the stop loss line to the cost price, and raise the stop profit by 1.5% for every 3% increase. Immediately stop loss when falling below key support levels (such as 4-hour EMA30).

4. Pyramid Scaling Strategy
After making a 5% profit on the initial position, increase the position size, with each subsequent addition decreasing in amount (for example, the initial position is 50,000, the second addition is 30,000). The total position should not exceed 20% of the principal to avoid turning profits into a liquidation.

5. Black Swan Contingency Plan
Reserve 30% USDT to cope with extreme market conditions. When the total liquidation amount across the network reaches three times the weekly average, actively close 50% of the position to hedge. Regularly withdraw profits, managing principal and profits separately.

Core logic: Use position size to dilute leverage risk, better to miss than to make a mistake. After 3 consecutive stop losses, a forced halt for 1 day to avoid emotional trading.