A trading system often cannot work universally across all trading varieties.
Recently popular coin Chuanmu, which went from 90,000 to 1 million in 10 days, and the oscillating Liangxi, I have analyzed many of their publicly available trading ideas and discovered an interesting pattern.
In the cryptocurrency world, some coins can be longed, some can be shorted, and there are also some that can only be focused on shorting, which are very likely to have a high win rate.
Can long and can short:
BTC and ETH, especially BTC, have a long-short probability close to 50%. Find the right trend, strictly adhere to the trading strategy, and have precise take-profit and stop-loss levels. Both long and short can have a relatively high win rate and a good profit-loss ratio.
Only short:
Coins below ETH can be shorted one by one.
Of course, there are a few principles:
Determining that the market is in a downtrend
Market cap above 200 million and below ETH
Stablecoins and RWA projects can also be eliminated
Altcoins, one by one, may rise wildly or fall drastically. Others may rise, but during a market downturn, they are likely to plummet. Choose coins with a market cap above 200 million; on one hand, ensure they have liquidity, and on the other hand, they are not easily manipulated. During a period of dual explosions, one spike in either direction can lead to liquidation.
This strategy has several key points:
The coins to short must be many; when the market trend is downward, there will be some coins that rise, but the ratio will be very, very small. If you short 20, even if 2 surge, you can still ensure a very good win rate and make a significant profit.
Coins that cannot be longed or shorted:
Coins with a market cap below 200 million
On the cusp of the storm, such as coins that are inexplicably shouted out by Elon Musk and Trump
I have explained the 200 million market cap above; the second category of coins is most likely to encounter black swan events. To ensure a relatively certain win rate, eliminate these types of targets that can easily become volatile.
Please take another good look at the candlestick chart. Are there countless charts cascading down like waterfalls that make you regret and beat your chest?
Come, let's become the big short in the cryptocurrency world.
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