River recent daily chart shows pin bar formation with obvious resistance above. Here's a trading approach: open a 10x leveraged short at 22.56 using 10% position size to test the waters, once it breaks the previous high resistance, stop loss 50% of position. If it surges to around 30 again showing pin bar formation later, add 10% position size. Is this staged layout approach feasible? The key concern is whether risk control can keep up with such high leverage?
**Analysis:**
**Risks with 10x leverage:** - 10% position loss = 100% account loss at 10x - Pin bar could be false signal, sudden acceleration breaks stop loss quickly - Liquidation risk is extremely high with such leverage ratio
**Issues with the strategy:** - Staged entry at 10% helps, but doesn't solve leverage risk - Adding at 30 means averaging down into resistance - high contradiction - Stop loss at "previous high" is vague, needs precise coordinates - Daily timeframe + 10x leverage = extreme volatility exposure mismatch
**Recommendations:** - Reduce to 2-3x maximum leverage for risk control - Use 1-2% position sizing per trade, not 10% - Define exact stop loss levels before entering - Consider using limit orders instead of market entries at resistance - If you must use high leverage, reduce position size proportionally (e.g., 1-2% at 10x)
**Verdict:** Not feasible as structured. Too much leverage + too much position size = high liquidation probability regardless of strategy quality.
River recent daily chart shows pin bar formation with obvious resistance above. Here's a trading approach: open a 10x leveraged short at 22.56 using 10% position size to test the waters, once it breaks the previous high resistance, stop loss 50% of position. If it surges to around 30 again showing pin bar formation later, add 10% position size. Is this staged layout approach feasible? The key concern is whether risk control can keep up with such high leverage?
**Analysis:**
**Risks with 10x leverage:**
- 10% position loss = 100% account loss at 10x
- Pin bar could be false signal, sudden acceleration breaks stop loss quickly
- Liquidation risk is extremely high with such leverage ratio
**Issues with the strategy:**
- Staged entry at 10% helps, but doesn't solve leverage risk
- Adding at 30 means averaging down into resistance - high contradiction
- Stop loss at "previous high" is vague, needs precise coordinates
- Daily timeframe + 10x leverage = extreme volatility exposure mismatch
**Recommendations:**
- Reduce to 2-3x maximum leverage for risk control
- Use 1-2% position sizing per trade, not 10%
- Define exact stop loss levels before entering
- Consider using limit orders instead of market entries at resistance
- If you must use high leverage, reduce position size proportionally (e.g., 1-2% at 10x)
**Verdict:** Not feasible as structured. Too much leverage + too much position size = high liquidation probability regardless of strategy quality.