risk-mgmt

Surviving crypto flash crashes

Stop loss strategies, cascade alerts, position sizing

12 min · intermediate

What you'll have when finished

• Survive flash crashes without account-blowing losses
• Get warned before liquidation cascades
• Size positions for worst-case outcomes

Before you start

• Stop losses can slip during flash crashes
• No risk management eliminates risk entirely

Walkthrough

1. Always set stop losses

   Every leveraged position needs a stop. Pick a stop loss price you can accept losing — never just "I'll watch it".

2. Enable cascade alerts

   Liquidation Cascade Alert warns when multiple positions approach liquidation simultaneously.

3. Position sizing rule

   Never risk >2% of capital on a single trade. With 50x leverage, that means tiny notional.