Risk management is literally the difference between surviving and getting liquidated in 3 months.
Here's the framework:
2-5% per position. That's it. With 50x leverage, a 2% move against you = position wiped. If you're aping 100% of your capital, one spike and you're done. Game over.
Cross margin setup: Only allocate 2-5% to the trade. The other 95-98% sits as margin, keeping your liquidation price far from entry. Example: $1000 wallet → max $20-50 per 10x trade.
Trailing stops > manual stops. Set a percentage distance. Price pumps, stop follows. Price dumps, stop stays fixed and closes you out. Captures late-stage pumps toward TP4/TP5 without you babysitting the chart.
Liquidation management in cross: Every time you hit TP and realize profit, that cash gets added to your wallet balance. This pushes your liq price further away automatically. After TP1 and TP2, you've got breathing room if the market corrects hard.
TP1 = risk-free trade. Close 25% of your position at TP1 with 10x leverage. You've locked profit and reduced exposure to violent reversals.
Funding rates will eat you alive on multi-day holds. If funding is sky-high positive and everyone's long, you're paying shorts every 8 hours. Hit TP3 with high funding? Close most of it before TP4/TP5 or the fees will kill your profit.
Stop loss placement: Don't put it exactly at entry. Price spikes, hits your stop, then rips to TP5 without you. Move it slightly above entry (long) or below (short) to cover fees. Or place a stop-in-profit just under TP1 if you want to stay in the game.
Bottom line: You own your risk. No one else is managing your positions. Trade like your capital matters because it does.
Here's the framework:
2-5% per position. That's it. With 50x leverage, a 2% move against you = position wiped. If you're aping 100% of your capital, one spike and you're done. Game over.
Cross margin setup: Only allocate 2-5% to the trade. The other 95-98% sits as margin, keeping your liquidation price far from entry. Example: $1000 wallet → max $20-50 per 10x trade.
Trailing stops > manual stops. Set a percentage distance. Price pumps, stop follows. Price dumps, stop stays fixed and closes you out. Captures late-stage pumps toward TP4/TP5 without you babysitting the chart.
Liquidation management in cross: Every time you hit TP and realize profit, that cash gets added to your wallet balance. This pushes your liq price further away automatically. After TP1 and TP2, you've got breathing room if the market corrects hard.
TP1 = risk-free trade. Close 25% of your position at TP1 with 10x leverage. You've locked profit and reduced exposure to violent reversals.
Funding rates will eat you alive on multi-day holds. If funding is sky-high positive and everyone's long, you're paying shorts every 8 hours. Hit TP3 with high funding? Close most of it before TP4/TP5 or the fees will kill your profit.
Stop loss placement: Don't put it exactly at entry. Price spikes, hits your stop, then rips to TP5 without you. Move it slightly above entry (long) or below (short) to cover fees. Or place a stop-in-profit just under TP1 if you want to stay in the game.
Bottom line: You own your risk. No one else is managing your positions. Trade like your capital matters because it does.
