The stop a cascade jumps

The equity track met the overnight halving - price teleporting through a gap no stop could span. Crypto has the same failure, and worse: it happens on a live, never-closed market, so there is no 'overnight' to blame, only the cascade, which can come at any hour.

Why the stop is not the risk bound

A stop becomes a market order, and in a cascade that order meets a book emptying faster than it fills: the triggering move is a wave of liquidations, each forcing sales that push the price and trigger the next, so the stop's fill can land far below its level. The distance is unpredictable - a plausible bad cascade in a liquid coin can be several times the stop's intended loss, and in a thin coin or a weekend book, more. The stop bounds where the trader tried to exit; the cascade decides where they actually did.

Sizing for the jump

• Size to a plausible cascade distance, not the stop: the equity gap-sizing lesson, applied to crypto's teleport - if a plausible cascade is three times the stop, the honest risk is three times the stop's, and the position sizes to that.
• The result is smaller still: crypto's already-wide stops, tripled for the cascade, produce genuinely small coin positions - which is the volatility being respected, per lesson 1, not timidity.
• The always-on caveat: there is no session to stand aside for - the cascade can come at 4am Sunday, so the sizing must assume the jump is always possible, not scheduled; crypto removes even the equity trader's option to be flat overnight.

What survives the cascade

Only the sized position. No stop placement survives a teleport - the platform has taught this five times - and crypto's teleport is the least scheduled and most frequent of all. The defence is entirely upstream: a position sized so that a plausible cascade beyond the stop is still a survivable loss, held in a market where the cascade needs no appointment. Module 1's leverage layer, which the spot holder cannot trade, sets the fill on the stop the spot holder can - and sizing for that, not for the stop, is the lesson the volatility demands.