Why did Bitcoin rise sharply today? Three reasons:
1️⃣ Japanese listed company Metaplanet has bought another 330 Bitcoins, spending 28 million dollars, and institutions are still stocking up!
2️⃣ The S&P 500 in the US stock market rose before the market opened, driving the coin circle to celebrate together.
3️⃣ Bitcoin ETF saw a net inflow of 106 million dollars yesterday, with new funds entering the market.
In simple terms: institutions are buying, the US stock market sets the pace, and ETF funds are flowing back, all three waves are boosting Bitcoin to take off!
Did you think that liquidation is due to sudden market changes? Wrong! It is you who 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, position is.
Fatal misconception: "100x leverage = high risk"
Truth: 100x leverage + 1% position = actual risk = 1x leverage full position
Case study: A professional trader uses 50x leverage, but the position size is ≤0.5%. He has not faced a liquidation for 3 consecutive years, achieving an annualized return of over 300%.
2. Stop-loss is not giving up, but rather a 'revival armor'.
In the 2024 519 big drop, the common point of 83% of the liquidated accounts: a loss of over 10% but still holding on.
Single loss ≤ 1% of principal (institutional level standard), equivalent to equipping the account with a "blast shield".
3. Profit without increasing position = working hard for nothing
Wrong operation: ran away after making a profit, resulting in missing a 10x market.
Correct strategy:
First position 5% (trial and error)
Every time you profit by 10%, use 20% of the profit to increase your position (compound interest snowball)
Case: In the SOL market in 2024, the principal of 50,000 will be rolled over to 500,000 in only 2 months
Institutional-level risk control model (internal outflow of private equity)
1. Dynamic Position Calculation Formula
Maximum position = (Principal × 1%) / (Stop loss range × Leverage multiple)
Example: 100,000 principal, 1% stop loss, 20x leverage → Maximum position = 1,000 yuan
2. Three-step profit-taking method (maximize profits)
① Profit 15% → Close position 30% (Lock in profits)
② Profit 30% → Rebalance 30% (reduce risk)
③ Remaining position → Move stop profit (exit when breaking the 4-hour EMA)
3. Hedging Insurance Strategy
Use 0.5% of the principal to buy Put options when holding positions (extreme market conditions can recover 50% of losses)
In April 2024, a black swan event allowed a certain large holder to avoid a liquidation of 2 million.
The 3 behaviors with the highest probability of liquidation (Have you fallen for it?)
"Hold on a bit longer" type → Hold position for 4 hours, liquidation probability skyrockets to 92%
"Frequent trading" type → Monthly average of 100 trades, transaction fees consume 20% of the principal
"Want to earn more" type → 83% of accounts incur losses due to greed, profits are given back.
The essence of trading: a mathematical 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%
Trade ≤ 15 times a year (waiting for a big opportunity)
Profit and loss ratio ≥ 5:1
Ultimate Survival Rule
Every loss ≤ 1% (absolute red line)
70% time in cash (patiently wait for opportunities)
Only engage in trades with a high risk-reward ratio (missing out is not a pity)

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