Recently, some trainees have been talking to me about contracts. I told them that the ultimate form of contracts is high leverage—go all in with heavy positions and trade aggressively! Low win rate, but a high risk-reward ratio!

They were all surprised and asked, “Aijiao, didn’t you say we can’t do contracts, and we also can’t go all in with heavy positions or trade frequently?”

Yes, that’s for beginners and newbies. Once you reach the top, the ultimate form is exactly like that. I found that the ultimate form and the original form are actually the same. This is what philosophy talks about—an upward spiral, moving forward through twists and turns. For example, back then, I survived on a salary of 20,000 yuan for a month. Later, I got rich overnight, and then I was wiped out overnight again. After experiencing all the romance and the day-to-day warmth and coldness of human relationships, after seeing the prosperity of the world and also witnessing betrayal of trust, intrigue, and scheming—later, when I traded, I could steadily earn tens of thousands of yuan in a month. My income was about the same as when I was working a job before, and the output was the same too. But my level, my cognition, and my mindset were completely different. What other people see is the result; what we gain is the process. This is the same principle: the ultimate form of contracts is the same as the beginner form—the only difference is the process in between.

I remember that when I first started trading contracts, I was using high leverage. I took one look and thought, “So much money!” Then I traded—and in the end, I got wiped out! Now I’m also using high leverage. You definitely can’t guess how many times of leverage I’m opening.

If you start doing contracts from scratch and you lose 1.5wu—that’s what it’s for, to lose it. After practicing all scenarios for a 1,000 per contract size, I have an advantage with altcoins: depth of cognition. But even I can’t fully control the altcoin’s trend. Conclusion: only BTC can achieve stable profitability!

Coming back to the ultimate form of contracts, you need to go through the following process: use 1x leverage, keep a small position. Through continuous practice, increase leverage and increase your position size, so your entry price points become more and more precise. If anyone tells me their win rate is 90% or even 99%, then I know they’re not far from getting wiped out. That 1% will make them go to zero. A real expert’s win rate won’t exceed 50%. At the beginning, when trading spot, I could roughly estimate price points with an error of about 1000 points. Through practice, I brought it down to 500–200 points. A friend told me that someone can be precise to 50–10 points; I said I can’t do that. Recently, I’ve been gradually practicing using lab operations, and then practicing with BTC. Now I can also get to about that level of precision.

There’s a logic here: low win rate, high risk-reward ratio. You must make your stop-loss small enough. For BTC, it’s best to be as tight as 10 and 1 (of course the probability is small). That way, when you lose, you lose little; when you’re right, you earn a lot. But there’s a problem: you’ll keep getting stopped out, so you need to survive a few tries before you can finally get on the right trade. That’s why the win rate is low. Once you get on the trade, you take a big profit. With precise and tightly controlled stop-loss ranges, your risk-reward ratio can be big enough. For example, if your stop-loss is 10 oil, then once you’re right, you need to earn 100 oil. With that kind of risk-reward ratio, even if your win rate is only 20%, you can still make money by continuing to do it. Earning 100 once lets you take 10 stop-outs. With a 20% win rate: if you do 5 trades, you lose 4; if you do 10 trades, you lose 8! Reaching this stage is the highest level—the ultimate form!

Overall, doing contracts is about low win rate, high risk-reward ratio, high leverage, and going all in with heavy positions. The low win rate is because you’re constantly trying and testing. The high risk-reward ratio is because precise execution reduces the stop-loss point range. Don’t do contracts without high leverage—contracts are inherently about using small moves to win big. Opening at 1x or 2x is meaningless. Once you’ve made it clear and you understand, you have to go all in with heavy positions to make money. Being able to read correctly isn’t enough—if you don’t go all in with heavy positions, how can you make money? Just analyzing without trading is nonsense—wasting your own energy! This isn’t blind confidence; it’s confidence that comes from repeatedly trading under a trading system that delivers stable profits. Blind confidence is the best way to send yourself on your way.
$BTC