Halved in a Week, Then Quadrupled
Lobster is a Memecoin on BNB Chain, named after China's "raising lobster" frenzy surrounding the open-source AI Agent project OpenClaw. Binance Futures listed the USDT perpetual contract for this token starting March 11, 2026.
From September 7 to 10, Lobster lost approximately half its value in Binance Futures daily candles. Over the next two days, the price surged about 4 times, reaching a new all-time high for the perpetual contract on September 13. The daily candles do not show intraday wicks, whereas Memecoins often exhibit very long wicks within a day.
Both Long and Short Positions Can Suffer Heavy Losses
If a $1,000 long position was opened on September 7 and held without a stop-loss, the paper loss by September 10 could be around $500. If a $1,000 short position was opened on September 10, with the price quadrupling two days later, the short seller's loss could reach approximately $3,000.
This series of swings does not indicate which direction is definitively correct. For a token that can halve in value and then quadruple within a week, the impact of stop-loss and position sizing on trading outcomes might be greater than the entry direction.
The Wider the Stop-Loss, the Smaller the Position Must Be
Take a $6,000 account risking $60 per trade as an example. Position size equals the risk amount divided by the stop-loss distance. With a 5% stop-loss, the position size is $1,200; with a 15% stop-loss, it drops to $400. In both scenarios, hitting the stop-loss results in a $60 loss, but a wider stop-loss requires a smaller position.
On an asset that quadruples in two days, a 5% stop-loss can easily be triggered by a single wick. Lobster exhibits the typical high volatility of Memecoins, where one swift price movement could exhaust the entire day's allowed loss limit.
