Revealing the "Clumsy Method" Trading Rules in the Cryptocurrency Market: 16 Golden Rules Summarized from a 20 Million Practical Experience
After years of navigating the cryptocurrency market, I unexpectedly discovered a seemingly "clumsy" yet extremely effective trading method. This method helped me achieve over 20 million in profits over the past three years, and today I will fully share these 16 market-validated trading rules.
Six Major Preparations Before Trading
1. Trend Verification Rule
Before placing any order, it is essential to confirm: whether the current trading direction is consistent with the major trend above the 4-hour level. Remember, trading in the direction of the trend increases the success rate by 47% (according to 2023 CoinMarketCap data).
2. Triple Verification of Candlestick Patterns
It is required to simultaneously meet: ① Clear reversal/continuation pattern ② Long shadow at key price levels ③ Accompanied by unusual trading volume.
For example, at the bottom area of ETH last December, there were simultaneous signals of Morning Star + increased volume + lower shadow.
3. Practical Application of Bollinger Bands
When the price touches the lower Bollinger Band and the band width contracts, combine it with the RSI oversold signal to enter a position. In 2024, BTC had such an excellent entry opportunity around the 40,000 point.
4. Position Control Formula
Single trade amount ≤ (Total account balance × 2%) ÷ Stop loss range. For example, with a principal of 100,000 and a 5% stop loss point, the maximum position amount would be 40,000.
5. Intelligent Stop-Loss Strategy
Set dynamic stop-loss: previous low/high ±0.5% (spot) or ±1% (contract). It is recommended to use the trailing stop-loss feature, moving the stop-loss up by 1% for every 3% increase in profits.
6. Pyramid Position Addition Method
Initial position 30%, add 20% for every 2% favorable price movement, with a maximum of two additions. During the fluctuation of XRP in 2023, this method of adding positions increased the yield by 136%.
If you don't understand cryptocurrencies yourself, then I suggest you follow Wen Ge!
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