A hundredfold leverage is like dancing on the edge of a cliff—one misstep and you'll fall into an abyss. This isn't just a vivid metaphor; the statistics are there—traders using leverage over 10x on average don't survive more than 3 months. Want to last longer in this game? You need to upgrade risk control from "intuition" to "mathematics."

Let's start with the core logic of opening positions. The Kelly formula isn't new, but very few people actually use it correctly. The fundamental principle is simple: never risk more than 2% of your total capital on a single trade. Suppose you have $10,000 in your account, and your stop-loss is set at 5%. Then your maximum position size should be 200 divided by (5%×leverage). This way, even if you make a wrong call, you won't burn through your principal.

You need to be proactive with stop-losses. Initially, place your stop outside key support or resistance levels. When your unrealized gains reach, say, over 50%, activate a trailing stop to lock in some profits. Also, pay attention to volatility—use the ATR indicator. If volatility suddenly jumps more than 20%, immediately cut your leverage to one-third of its current level. The market won't give you a warning, but the data will.

Timing is the easiest trap to fall into. Federal Reserve meetings, major policy releases, exchange system maintenance—these time windows account for over 60% of liquidation events. Liquidity can suddenly dry up, slippage can spike, and prices can gap—these all happen during such periods. The smart move is to avoid trading during these times; no profit is worth risking that much.

Psychological constraints are equally critical. Set a daily maximum loss limit, such as 5% of your total account. Once hit, close all positions and stay offline for 24 hours to force yourself to cool down. Discipline is also necessary weekly—withdraw 30% of profits to build a "profit buffer." These seemingly mechanical rules are precisely what keep your decision-making rational and protected.

High-leverage trading is essentially a game of probability on the accelerator. Those who survive are the ones who embed risk management into their very bones and strictly follow mathematical discipline. Others will mostly end up as casualties of short-term volatility.