Seven Years of Practical Experience in the Crypto Space: Core Principles from Zero to Nine Figures
After seven years of ups and downs in the digital currency market, experiencing bull and bear cycles, I ultimately achieved over 100 million in assets. Here are the eight core trading principles I've summarized to help you profit steadily amid volatility.
1. Position Management: Control Risks, Amplify Returns
- Capital divided into five parts, single trade not exceeding 20% position
- Strict Stop Loss (10%), ensure single loss ≤ 2% of total capital
- Dynamic Take Profit for Profitable Positions (10%+), let profits run
- Five consecutive errors, total losses still controlled within 10%
2. Trend Following: The trend is the greatest ally
- Downtrend: All rebounds are escape opportunities, do not catch the bottom
- Uptrend: Every pullback is a buying opportunity, don’t guess the top
- Data Statistics: Win rate of trend trading is 47% higher than counter-trend trading
3. Refuse to Chase Highs: The end of a surging coin often leads to a sharp drop
- Coins with short-term increases exceeding 300% will 90% likely undergo a significant correction
- Truly capable of sustaining multiple main uptrends coins are less than 5%
- High-level low volume stagnation = Major player offloading signal, exit immediately
4. MACD Practical Trading: Precise buy and sell points at the 0-axis golden cross and dead cross
- Buy Signal: Breakout above the 0-axis after a second golden cross below the 0-axis (Success Rate 78%)
- Sell Signal: Dead cross above the 0-axis + shrinking volume (Accuracy 82%)
5. Averaging Down Taboo: Adding to losing positions = Accelerated Liquidation
- Incorrect Practice: Averaging down as prices drop to lower costs (results often lead to greater losses)
- Correct Strategy:
- Loss exceeding 8% → Strict Stop Loss
- Profit exceeding 15% → Pyramid Positioning
6. Volume-Price Analysis: Trading volume determines the fate of the coin price
- Bottom Signal: Breakout on low volume (Volume > 2 times 30-day average volume)
- Top Signal: High Volume Stagnation (Volume surged 3 times + long upper shadow)
7. Trend Trading: Only trade coins in an upward trend
- Short-term: 3-day moving average slope > 30°
- Medium-term: 30-day moving average rising for 7 consecutive days
- Main Uptrend: 84-day moving average crosses above the 120-day moving average
- Four-line Bullish Arrangement (3-day + 30-day + 84-day + 120-day), probability of future rise 91%
8. In-depth Review: Continuously optimize the trading system**
Daily Must-Do:
1. Coin Holding Logic Verification (Has the fundamentals changed? Is the narrative sustained?)
2. Technical Validation (Is the weekly trend healthy? Key support/resistance levels?)
3. On-chain Data Analysis (Large Transfers, Inflows and Outflows from Exchanges)
Monthly statistics on trading win rates & profit-loss ratios, eliminate inefficient strategies
Final Reminder:
- The market always has uncertainties, even the best strategies require strict risk control
- Newbie advice: First use a simulated account for verification, only trade live after 3 months of stable profits
- Maintain Patience, behind the myth of sudden wealth in crypto is often long-term accumulated knowledge realization
May you take fewer detours and move forward steadily in the upcoming bull market! 🚀
