Trading Strategy - Select Leverage

The Governor and The Ghost: A Doctrine on Leverage and the AI in the Machine

In this section, in its most summarized form, you select the leverage you want to use for the automatic trade.

The strategy that takes an account from $1,000 to $100,000 will utterly destroy you on the path from $1 million to $10 million. We have spoken before of the Siren's Song of 100x leverage. We have unmasked it as the market’s most effective weapon for your psychological and financial ruin. Now, we will show you how we disarm it.

First, we must reiterate the foundational truth that the professional understands and the amateur ignores: the "x" number is an illusion. The only thing that matters is your notional exposure. If you have a $1,000 account and you open a position using $50 of your capital at 20x leverage, you are not a "20x trader." You are controlling a $1,000 position ($50 * 20). You have effectively placed 1x your entire account value on a single bet, but with a liquidation fuse so short that a mere 5% move against you will detonate your position. The market does not care about your margin; it only sees the size of your bet and the proximity of your liquidation point—a bright, flashing target for its predators.

Because we understand this, the MEFAI system has a non-negotiable, hard-coded line of defense. We have placed a Governor on the engine. You will never be allowed to open a position with more than 20x leverage. Ever. Within this protected range of 1x to 20x, you are free to manually select the level of risk you believe a trade warrants. This is your first layer of control—a walled garden where the most suicidal forms of leverage simply cannot reach you.

But we have also built a second path. A smarter path. We call it the Ghost.

This is our AI-driven leverage protocol, and we have done something that few, if any, platforms would dare to do: we have published its core logic on GitHub for the world to see. It is an act of radical transparency. We have, of course, firewalled our proprietary data sources and APIs—the Ghost’s eyes and ears on the market—and replaced them with mock data in the public code. The recipe is there for you to inspect, but the rare ingredients are ours alone.

The Ghost is a digital hunter, constantly stalking the assets in our curated arena. It doesn’t just look at price; it analyzes a dozen hidden parameters—order flow velocity, liquidity depth, volatility acceleration, and more—and distills this complex reality into a single number: a Conviction Score, on a scale of 1 to 20. (We are sorry, the maximum is still 20x).

And here is its most elegant feature. The AI’s score is a measure of bullish conviction. If the MEFAI signal is LONG and the Ghost’s Conviction Score is, for example, 14, your position will automatically open with 14x leverage. The AI is confident in the upward momentum. However, if the MEFAI signal is SHORT, this is an act of defiance against the AI's calculated momentum. Therefore, the Ghost will assign a cautious, defensive leverage: the inverse of its conviction. That is, 20 minus 14, resulting in a 6x short position. Should the Ghost ever lose its connection to the data streams due to a system error, it will not gamble blindly. It will default to a state of neutral caution: 10x leverage, the golden mean of our system.

You are free to choose your path: the manual control of the Governor or the intelligent guidance of the Ghost. But you must never forget the cardinal rule of professional trading: as your capital grows, your risk must shrink. The strategy that takes an account from $1,000 to $100,000 will utterly destroy you on the path from $1 million to $10 million. As your account size increases, your leverage—especially on the volatile battlegrounds of altcoins—must decrease. This is a non-negotiable law of capital preservation.

Ensure you have read our doctrine on Asset Selection. Then, choose your leverage wisely.