#Strategy加码BTC配置 The truth about contract liquidation? Actually, it’s just eight words: poor risk management.

I’ve been trading contracts for eight years and have seen too many accounts go from tens of thousands to zero in an instant. But honestly, it’s not bad luck — it’s not thinking clearly about how to place orders. I’ve tried these methods, many others have verified them, and I’m sharing them with you.

**Leverage does not equal risk**

100x leverage sounds terrifying, but if you trade with 1% of your capital, the actual risk is even lower than going all-in on spot. Just remember this formula: Actual risk = leverage multiple × your position size ratio. In other words, leverage itself isn’t scary; what’s scary is throwing too much money into it all at once.

**Stop-loss is like buying insurance for your account**

During the big market drop in 2024, 78% of liquidations involved people losing 5% and still holding on stubbornly. The strictest stop-loss rule I’ve seen is this: never lose more than 2% of your total principal on any trade. 2% — remember this number.

**Position size must be calculated in advance**

Here’s a simple formula: maximum investment = (principal × 2%) ÷ (stop-loss percentage × leverage).

For example: you have 50,000 yuan, can tolerate a 2% loss (which is 1,000 yuan), and use 10x leverage. Then, the maximum amount you can invest in this trade is 5,000 yuan. Sounds conservative? But the benefit is that you can survive long enough to wait for the next high-probability opportunity.

**Partial take-profit, don’t be greedy**

Sell 1/3 when you gain 20%, sell another 1/3 at 50%, and if the remaining position drops below the 5-day moving average, close all. This strategy sounds simple, but in 2024, someone used this method to grow from 50,000 to 1 million — not by getting rich overnight, but through steady compound growth.

**Buy small options as insurance**

When holding a position, use 1% of your account to buy put options, which acts as insurance for your position. This small expense can block 80% of risks during sudden market moves. During the unexpected crash in 2024, this tactic protected 23% of the principal.

**Math will tell you if you can make money**

Break it down: (win rate × average profit per win) minus (loss rate × average loss per loss). As long as you lose at most 2% per trade and take 20% profit when you win, even with only a 34% success rate, you’ll make money in the long run. This is not motivational talk — it’s math.

**Four iron rules, one must not break**

· Single-loss limit: 2% of principal
· Trading frequency: no more than 20 times a year
· Profit-to-loss ratio: profits must be at least 3 times losses
· Operation rhythm: avoid trading 70% of the time, wait for opportunities

Don’t rely on intuition; rely on rules. That’s the only way to sustain profits.