Don't let "hold a losing position" ruin you: From 800k Get Liquidated to a 10 million account in a decade in the crypto world.

The most painful thing is an 800k loss - holding a losing position for 4 hours, the account went from floating profit to Get Liquidated. Three major truths that overturn cognition: Only after losing 800k do you understand the logic of survival - Leverage ≠ Risk: Position size is the lifeline. Risk does not lie in the leverage multiple, but in position control. Using 100x leverage with a 1% position, the risk is only equivalent to 1% in spot trading. Some students used 20x leverage to trade ETH, investing 2% of their principal each time, with no Get Liquidated in three years, and an annualized return three times higher than spot trading. Core formula: Real risk = leverage multiple × position ratio. Understanding this back then would have at least halved the 800k loss - Stop loss ≠ Loss: The ultimate insurance for the account. During the crash on March 12, 2024, 78% of Get Liquidated accounts did not stop loss due to losses exceeding 5%. My 800k loss was also due to the fantasy of "it will always rebound," dragging a floating loss of 3% to 20% before being forcibly liquidated. Now set an "insurance fuse": single loss not exceeding 2% of the principal, like a circuit breaker that automatically cuts off power in case of overload. This strategy helped me avoid the black swan in April 2024 and preserve 3 million in principal - Rolling position ≠ All-in: The correct way to open up compounding. Early on, I went all-in and added positions, with profits coming and going quickly. Later, I used a step-by-step method: the first position 10% for trial and error, only using 10% of profits to add positions. With a principal of 50k, the first position was 5000 yuan (10x leverage), adding 500 yuan each time I made a 10% profit. During the surge from 75000 to 82500 in BTC in 2024, the total position expanded by 10%, safety margin increased by 30%, and profits were even greater than full positions. - Institutional-level risk control models: From "passive liquidation" to "active control" - Dynamic position formula: Calculate before placing an order. Total position ≤ (Principal × 2%) / (Stop loss percentage × Leverage multiple). For example, with a principal of 50k, 2% stop loss, and 10x leverage, the maximum position is 50000 × 0.02 / (0.02 × 10) = 5000 yuan. In the 2024 halving market, I turned 50k into a million with this method, yielding over 1900% - Three-stage profit-taking method: Lock in profits. Close 1/3 at 20% profit, lock in; close another 1/3 at 50%, reducing costs; use a trailing stop for the remaining - exit below the 5-day line. Last year, for a certain coin, I preserved 80% of my profits, while friends who held on only had a fraction left - Hedging insurance mechanism: Give positions a "bulletproof vest". When holding positions, use 1% of the principal to buy Put options, hedging against 80% of extreme risks. In April 2024, during the black swan event, the market fell by 30%, and I only lost 5%. Black swans in the crypto world are inevitable, so don't go out without a "bulletproof vest". - Deadly trap empirical data: A guide to avoiding pitfalls bought with an 800k loss - Holding a losing position for 4 hours, the probability of liquidation surged from 15% to 92%. Cut positions immediately if losses exceed 2%; the principal is more important than the opportunity. - Monthly average of 500 operations, transaction fees consumed 24% of the principal. Now, limit annual operations to no more than 20 for more stability. - Accounts that do not take profits have not taken profits. Once expectations are met, exit in batches to lock in profits. - The mathematical expression of the essence of trading: Use probability to defeat the market. Expected profit formula: (Win rate × Average profit) - (Loss rate × Average loss). With a 2% stop loss and 20% take profit, a win rate of 34% can still make money in the long run. I rely on strict stop losses (average loss of 1.5%) and trend capturing (average gain of 15%), with annualized returns exceeding 400%. Ultimate rule: Single loss ≤ 2% (life-saving); Annual trades ≤ 20 (fewer mistakes); Profit-loss ratio ≥ 3:1 (earn more); 70% of the time in cash (waiting for opportunities).