A lot of people think I’m bound to lose money sooner or later, and that my current profits are just luck. Actually, I used to trade futures on other platforms too, and I’ve always preferred using small positions.
I know very well that my biggest weakness is my mindset. Especially when my position is large, I’m easily affected by my emotions, which makes me more likely to lose money. So these days I mainly trade spot, and only put a little money into futures for fun. I’m perfectly happy if I make enough for a meal in a day.
I’m not trying to argue. I just think that when discussing risk, we shouldn’t look only at leverage and returns; we should also consider how much capital was actually invested and how much risk was taken on.
For example, if I put just 10 U into a futures trade as isolated margin, then even if I get liquidated, my maximum loss is just that 10 U (not counting additional fees or other risks). You see that I made 291 U in profit, which is actually about 29 times my initial 10 U investment. But conversely, even if I lost that entire 10 U, the drawdown on my overall account would still be less than 2%.
Of course, I also know that consecutive losses can keep adding up, and how many times I’ve made my money in the past doesn’t mean I’ll keep making a profit in the future. I just want to say that high leverage doesn’t necessarily mean high risk to your account. What really matters is position sizing, risk exposure, and whether you can stick to your rules.
I choose to use small positions not because I think I can win all the time, but because I know that heavy positions aren’t right for me.
I’ve also been studying quantitative trading recently. I backtested a year’s worth of data and got an annualized return of around 6%. If it works well, I may make it available to my followers later.
I know very well that my biggest weakness is my mindset. Especially when my position is large, I’m easily affected by my emotions, which makes me more likely to lose money. So these days I mainly trade spot, and only put a little money into futures for fun. I’m perfectly happy if I make enough for a meal in a day.
I’m not trying to argue. I just think that when discussing risk, we shouldn’t look only at leverage and returns; we should also consider how much capital was actually invested and how much risk was taken on.
For example, if I put just 10 U into a futures trade as isolated margin, then even if I get liquidated, my maximum loss is just that 10 U (not counting additional fees or other risks). You see that I made 291 U in profit, which is actually about 29 times my initial 10 U investment. But conversely, even if I lost that entire 10 U, the drawdown on my overall account would still be less than 2%.
Of course, I also know that consecutive losses can keep adding up, and how many times I’ve made my money in the past doesn’t mean I’ll keep making a profit in the future. I just want to say that high leverage doesn’t necessarily mean high risk to your account. What really matters is position sizing, risk exposure, and whether you can stick to your rules.
I choose to use small positions not because I think I can win all the time, but because I know that heavy positions aren’t right for me.
I’ve also been studying quantitative trading recently. I backtested a year’s worth of data and got an annualized return of around 6%. If it works well, I may make it available to my followers later.
