How I Avoid Liquidations - And How You Can Too, Regardless Of Account Size This is the exact risk framework I use in my trading. It’s worked for me across various market conditions, and it scales up or down. You could quite literally use this method even if you only have $50 in margin. This is the reason I don’t have liquidations. This may not be right for all traders. This is just what I’ve found to be right for me. I use cross margin and keep only one open trade per subaccount. This ensures I can see the actual liquidation price with no confusion from overlapping positions at play. I never open a position with full size. I start small to medium sized based on my conviction of my entry point and keep most of my capital in reserve. Since timing the top or bottom perfectly is a very tough ask of even the best of traders I always assume that I’ll be able to DCA. If/when the trade moves against me, I want to DCA from a position of strength, not desperation. I don’t use stop losses if I still believe in the macro thesis. If the broader trend remains intact, I’m not interested in getting shaken out by short-term volatility. (For example: are we still in a bull market? Great - go long) Before entering any trade, I model a 15% black swan drop from the current price (or whatever percentage the past has shown us a particular asset tends to drop during a black swan even, the % varies per asset) . If my liquidation price isn’t below that level, I either reduce size or wait for a better entry. No exceptions. For example: Let’s say I’m long XRP at $3 and only have $50 to work with. I want to build a position that survives a 15% drop (to $2.55) and still leaves me room to scale in if price pulls back. I start by allocating $25 as margin at 5x leverage, giving me a $125 position - about 41.67 XRP - with a liquidation price of $2.40, safely below that 15% threshold. I keep the other $25 in reserve, ready to DCA if the setup improves. If price drops to $2.80, I deploy the second $25 using the same 5x leverage. That adds approx 44.64 more XRP, bringing my total to approx 86.31 XRP and increasing my total position size to $250. My average entry drops to $2.90, and my liquidation level falls even further to $2.32 - giving me an even deeper buffer than before. This setup gives me size, safety, and flexibility - exactly how I stay in control when the market tries to shake me out. If I can’t survive a 15% (or whatever the proper black swan amount is for the asset in question) move against me, I’ve either sized too aggressively or entered too early. This is how I manage risk. It’s not about being right every time. It’s about staying in the fight long enough to let the broader thesis play out. For those of you copying trading others, you often have very little control over a lot of these factors. However you can and should allocate only a small portion of your copy trade balance to the lead traders trades so you can ensure your position survives with a big price move as well. 🫡 From the depths — The White Whale 🐋

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