There is a very foolish method of trading cryptocurrencies that has nearly 100% profit.
Only trade high and low with BTC/ETH, and do not engage in any altcoins!
10x leverage, with 2-3 layers of positions is best; more than 30% already starts to have risks, and anything larger cannot withstand any round of sharp declines, leaving very little room for error. This is a summary of years of experience from Cold Wind, so please take it seriously.
If you increase leverage, you can simultaneously reduce your position size, and if you reduce your position size, you can increase your leverage. This ensures that you remain close to Cold Wind's strategy.
For a single cryptocurrency, the maximum total of three positions should not exceed 30%; at most hold 3-5 cryptocurrencies, with their total not exceeding 30% of the entire position (normal position size).
For a single cryptocurrency, the maximum total of three positions should not exceed 20%; at most hold 3-5 cryptocurrencies, with their total not exceeding 20% of the entire position (conservative position size).
When you are about to buy one, first, you need to have a concept of how much USD you plan to invest. For example, if I want to buy BTC, I need to buy a total of 1000 USD, if buying ETH, a total of 2000 USD, and if buying ORDI, a total of 500 USD.
Next, you need to have a rule for the buying process, which is generally a three-position system, either 4.3.3 or 3.4.3.
If the price starts to rise during your buying process, do not add to your position.
If all three positions have been entered and the price still drops, do not add to your position anymore.
1. Set a stop loss. This is essential, not optional.
2. If you have averaged down but the price is still falling, it indicates your judgment was incorrect; consider actively reducing your position. Wait for it to turn around before adding to your position again.
3. Averaging down upon a turnaround. Averaging down should not mean buying more as the price drops, as this can lead to an increasingly heavy position. Instead, wait for it to turn around before averaging down.
Try not to place night orders, and avoid opening night orders; if you do open them, try to hedge!
