In an uncertain market, the only certainty is stop loss, stop loss is the only thing, and take profit is random.

Risk control can keep you alive. Surviving with a broken arm is painful, but as long as you are alive, there is hope.

1: Fund management

Small funds rely on stud, large funds do asset management

Trading is a speed-changing race. When you encounter good opportunities, you must dare to open and hold positions to achieve leapfrog growth in account funds.

None of the famous speculators in the market made their fortune by relying on compound interest. They all achieved exponential growth of funds through one or several battles.

There are two methods of fund management. The first is to use the percentage of total positions as fund management.

The second method is to manage your funds based on the amount of loss you can accept.

Use the percentage of total positions as fund management:

First of all, you need to manage your own funds. You can divide your funds into 50 parts, that is, use 2% of the position as a stop loss each time.

Fund management must be strictly implemented for partners with large funds. There are no fixed requirements based on their own financial situation.

Partners with smaller funds can increase the stop loss percentage for each time, such as 5% or 10%.

Ant Small Capital recommends direct stud)

Use the amount of loss you can accept as your fund management:

This is actually very simple. It means how much loss you can accept on a single order, which can be painful without affecting the status of subsequent transactions.

For example, if I lose 200u per order, I feel pain, but the amount of 200u is still acceptable for my remaining funds.

Then use the amount of 200u as the single stop loss amount.

2: Circuit breaker mechanism

There are two types of circuit breaker mechanisms. The first one uses the amount of funds as the circuit breaker, and the second one uses the time period as the circuit breaker, daily circuit breaker, weekly circuit breaker, and monthly circuit breaker.

for example:

Use the amount of funds as a circuit breaker

When the loss reaches 20% of the total position, no matter what the situation is, you must immediately stop placing orders and take a rest.

There is not only currency speculation in life, but also life, gathering with friends, spending time with family, relaxing, adjusting your state before continuing to place orders. .

Use time period as fuse

If there are two stop losses in a row today, no matter what the situation is, you must stop placing orders immediately and take a rest that day.

There have been two daily circuit breakers this week. No matter what the situation is, you must immediately stop placing orders and take a rest this week.

Weekly circuit breakers have occurred twice in a row this month. No matter what the situation is, you must immediately stop placing orders and take a rest this month.

3: Loss-based quantification (core risk exposure)

Many partners like to open high leverage when opening orders, which leads to liquidation because you have not learned the scientific way of opening orders <Loss Quantitative>.

When you learn how to limit your losses, you will know that it doesn’t matter how many times your leverage is used to open an order.

Because the risk exposure of using loss-limited orders is constant.

How to quantify losses with the following examples:

Formula: Leverage times X initial margin = position amount

As for the leverage multiple and the initial margin, you can flexibly combine them, as long as the multiplication is equal to the position.

For example, when we open an order, we use 200u as the stop loss, and the stop loss point on the chart is 2%.

200÷2%=10000 (this 10000 is our position)

10X1000=10000 (We can open 10 times leverage and use 1000u margin to open orders)

20X500=10000 (We can open an order with a leverage of 20 times and use a margin of 500u)

Some friends will ask me if I want to open 100 times leverage?

Yes, you just need to calculate it according to the formula

100X100=10000 (We can open an order with 100 times leverage and use 100u margin)