From my personal experience, the end of trading cryptocurrencies is not bankruptcy, but wealth.
It is not about being keen on trading coins, but rather on making money, and on striving to improve the living standards of oneself and one's family. The ways to make money in the world are just a few:
1. Starting a company leads to overcapacity, the pandemic looms, and fierce competition ensues; starting a business these days is almost equivalent to seeking death.
2. Individual buying and selling entrepreneurship like opening a small food stall is possible, but finding a good location for the storefront is difficult, while a bad location means no business. Street vendors may be an option, but are you sure you can endure the life of eating and sleeping outside, covered in oil smoke?
3. The self-media entrepreneurship is fiercely competitive, with more self-media vying for traffic than traffic itself. It seems that those influencers shine brightly, but the struggles behind them are known only to themselves. For example, I sincerely answer questions, yet I hardly get a few perfunctory likes.
4. Working is certainly not an issue, which is equivalent to having a crisis-high individual (boss) supporting you. However, working can only provide you with a salary; can it create wealth? It cannot. Of course, if you are a technical expert, highly educated, or a sales champion, then it can.
However, 99% of the world's population is not.
Six years ago, Su Ge gave up a high-paying job in the eyes of friends and family to trade cryptocurrencies full-time, simply because I had a sudden insight into its mysteries!
At this moment, with the aim of helping others and helping oneself, I am sharing the trading techniques I have distilled, each one built from valuable insights acquired through real investment. Understand them, and you can avoid four years of setbacks!
Lecture One - The Past and Present of the W Bottom!
Why does the so-called 'W' bottom appear in trends?
This is because when the coin price drops to the previous concentrated area of chips or has a certain depth, trading volume begins to shrink, and the selling pressure from bears is insufficient, thus indicating signs of a price stop. Subsequently, with the push of bulls, the price rebounds and the trading volume also increases.
When the price rebounds to a small range of resistance, selling pressure also emerges, and the price encounters a second drop. When it falls to the previous low, it stabilizes again, and trading volume shrinks to less than the volume during the previous decline. This indicates that the coin price begins to rebound again, with the trading volume larger than during the last rebound, and the price breaks through the high point of the first rebound. Once these conditions are met, it marks the formation of a standard 'W' bottom!
1. The technical characteristics of a double bottom:
(1) Appears in a downtrend or at the end of a mid-term adjustment.
(2) The two low points are at the same price level, or the right low point is slightly higher. Only a very few double bottoms have the right low point lower than the left one.
(3) Most of the right low points of double bottoms have trading volumes smaller than the left ones, but during the second rise, the trading volume is generally greater than that during the first rebound.
(4) The neckline of the double bottom generally is the horizontal line through the first rebound peak. Sometimes, due to the shape, it may be slightly inclined.
2. The technical meaning of a double bottom:
A double bottom is a technical pattern indicating that the coin price has bottomed out and is rebounding, serving as a buy signal.
Practical logic: A decrease in trading volume indicates that traders holding positions are unwilling to sell their chips, and the supply of chips is gradually decreasing. Meanwhile, outside traders, due to the drop in coin prices, want to enter the market for purchases, pushing the price back up, and trading volume also increases accordingly. When the coin price rises to a previous small consolidation platform, traders who entered at the bottom begin to take profits, and some trapped positions also sell at high points, causing the coin price to drop again. When the price falls back to the last low point, traders optimistic about the market again buy in, and trading volume clearly increases compared to the previous rise.
As more and more buy orders continue to enter, the coin price rises and breaks through the previous high point of recovery, completing the double bottom pattern, the coin price shifts from a downward trend to an upward trend.
One insight leads to a threefold increase in a year.
Digital currency fund quantification mainly involves two types of operations: risk-free arbitrage and trend arbitrage, among which
Risk-free arbitrage mainly includes:
1. Arbitrage based on price differences of Bitcoin across different exchanges
2. Triangle arbitrage of tokens with relatively good liquidity.
3. The market price gap is large, and active market arbitrage is involved.
4. Futures hedging arbitrage. Trend arbitrage mainly includes
5. Leverage strategy trading
Next, I will explain how to execute this specifically, involving trade secrets; I will only discuss operational logic, without detailing the specific algorithms.
The 1st strategy: Arbitrage trading.
As Bitcoin is a global currency, multiple exchanges in different countries are trading it. Currently, the Indian Rupee (INR) has the highest price for buying Bitcoin (BTC/INR trading can be done on Koinex), followed by the Korean Won, and the US Dollar has the most stable price. There exists an arbitrage opportunity among the different units of currency for the same BTC across various exchanges.
Therefore, the following prerequisites must be met:
1. Open accounts on Bitcoin exchanges in India, South Korea, the United States, etc., and hold corresponding fiat currency, BTC, and USDT.
2. The trading platform's activity level is high, supporting deposits and withdrawals at any time. When there is a price divergence for BTC across different exchanges, as long as the profit margin exceeds the transaction fees, the following cycle can be performed:
Automatically determine through machines while executing the first, second, and third steps.
The 2nd strategy: Triangle arbitrage.
Generally, select tokens with good liquidity for triangle trading, completing a triangle cycle without changing the amount of coins, increasing cash on hand.
The following prerequisites must be met:
1. The liquidity of the tokens must be good enough.
2. Calculate the total amount from buy one to buy ten and control the amount of circulating positions. When a triangle cycle completes and the profit margin exceeds the transaction fees, you can proceed as follows.
The 3rd strategy: Market price arbitrage.
Due to the numerous ICO projects on the market, and since most projects have private placement rounds, the investors in the private placement hope to realize profits quickly, while those who did not participate in the private placement who are optimistic about the coin will actively buy it. Thus, some want to sell while others want to buy. By holding a certain bottom warehouse and automatically maintaining machine trading at the buy and sell prices, the middle profit can be captured, as long as it exceeds the transaction fees, the machine will trade automatically. This model is effective when there are significant price fluctuations at the opening and coin prices, while its effectiveness is weaker when trading is sluggish and fluctuations are smaller.
The following prerequisites must be met.
1. There are significant differences in opinions about a coin; some are strongly bullish while others are strongly bearish.
2. Liquidity must be sufficiently large; it is best to select tokens listed on multiple exchanges, which can then realize market price arbitrage across different exchanges.
The 4th strategy: Hedging arbitrage
Mainly through purchasing corresponding futures of the currencies you hold, or the opposite logic currency. For example, if you hold Bitcoin, you should purchase futures that short Bitcoin to hedge risks. If you hold Bitcoin, you should buy Bitcoin Cash (BCH) to hedge risks. Since this is merely a strategy to lock in profits, there are no actual operational steps.
The 5th strategy: Trend Arbitrage
This model requires judging the price trend from one minute to one day ahead, using a margin system for leveraged trading. This part of the strategy is the most difficult and tests the programmer's algorithm capabilities.
The previous four parts are all risk-free arbitrage. As long as the API connects to the exchange, and the algorithms and strategies are fast enough, with server nodes sufficiently close, arbitrage can be achieved. However, leverage strategy trading requires machines to independently judge future trading trends and make corresponding long or short strategies.
Currently, many teams make judgments through human means, by listening to news and using intuition to perceive market trading data, leading to manual long or short positions. Due to the significant volatility in digital currency, leverage strategy trading can easily lead to liquidation due to making opposite judgments. Hence, this part of human operations has a large net value drawdown and floating profit, with highly volatile returns.
A professional digital currency quantitative trading team needs to consist of members from traditional financial markets such as stocks, securities, and funds. The research strategies must be capable of handling billions in capital and applying them, all with systematic machine judgment to broadly narrow profit fluctuations and avoid human emotional and news interference.
Recently, the topic 'McDonald's commemorative coins are being snatched up' topped the trending searches, and Starbucks refuting rumors of not accepting cryptocurrency payments also sparked media discussions. Terms like 'Bitcoin' and 'digital currency' seem to be in the spotlight at any time. What opportunities and risks lie behind the heat of digital currency? As we enter a bear market, is there still investment value in digital currency?
The psychology of getting rich quickly has corrupted the cryptocurrency ecosystem.
If we consider digital currency as a game, various players have different roles, including project parties, exchanges, miners, and countless investors. Everyone follows a certain consensus mechanism and 'plays their part' within the game ecosystem.
Using 10,000 USDT to earn 10 million within a year can only be achieved through this method: rolling positions + hoarding large altcoins!
Position management suggestions for everyone now:
1. For example, if you take out 30,000 USDT to trade contracts, my suggestion is to split it into three parts, each with 10,000 USDT.
2. Use one part of the total to open a position each time, with a fixed amount of 10,000 USDT; Bitcoin does not exceed 10 times leverage, and altcoins do not exceed 5 times.
3. If you lose money, for example, 1,000 USDT, you should compensate with 1,000 USDT from outside. If you make 1,000 USDT, you should withdraw that amount.
4. Ensure that in the recent period, every time you open a position, you can guarantee a fixed position of 10,000 USDT.
5. Until you earn 60,000 USDT from 30,000 USDT using this method, increase each of your positions to 20,000 USDT.
The benefits are: First, splitting positions + low leverage to avoid losing all funds due to exchange spikes.
The second point is to avoid questions like this from bothering you. If one day you lose control and lose everything, at most you will blow up 1/3; the remaining amount still gives you a buffer opportunity.
The third point is to maintain a fixed position. Whether you are losing or making a profit, you can keep a relatively calm mindset, which helps stabilize your mentality.
The martial arts secrets have been given to you; whether you can become famous in the world depends on yourself.
Three maxims for the relationship between volume and price: enter when volume increases and price rises, exit when volume is stable and price falls!
1. The best strategy at high volume is to sell.
High positions usually refer to coin prices being near historical highs or at high positions having 3-4 large cycles. If there is a surge in volume at this point, it indicates that the main force is dumping shares and distributing chips to retail investors. At this time, it is best to exit and observe; if there is not a relatively large volume at this position, do not exit easily.
2. Low volume at the bottom is the best strategy.
Low volume at the bottom is because the main force may still be distributing; it has not reached the stage of accumulating. As long as there is no accumulation, it is not the right time for a real rally. Only when there is an increase in volume can we confirm that the main force is acting. Therefore, you should be bold in following up on bottom volume; even if you are wrong, it is worth it. The waiting time may be longer, but it will not result in losses.
3. Entering when volume increases and price rises is not to be feared.
As trading volume increases, prices keep soaring, indicating that the market has this driving force. According to trend principles, there will be subsequent actions and it will not just be a single wave, so you should be bold in entering the market; however, similarly, when volume increases but price remains stable or volume increases while price rises, caution is advised.
For the overall market:
If the overall market volume continues to strengthen, there will be more opportunities for various coins. The general operating principle is to muster all efforts to push upstream; conversely, if the volume is not very pronounced, it is better to strike lightly. If the strength decreases and the opportunities for individual stocks are scarce, it is best to avoid reckless attacks.
For individual coins:
1. When trading volume expands, the overall market is still building up for a big rise; when trading volume shrinks, the energy decreases, and you do not need to focus too much attention on coins with small volumes.
2. Pay attention to the position; both high and low volumes can potentially cause a trend reversal, so it is essential to check.
3. When trading volume is high, and the coin price drops significantly, the trend continues to decline. If a reduction in volume occurs later, it indicates that the downward trend is about to terminate. When the price drops less, it marks the day of reversal.
How do cryptocurrency traders grow?
Practice volume must be large, must be large, must be large, must be large, must be large; important things are worth saying five times.
A lot of practice can help you solve many things.
1. Daydreaming.
I have seen some traders who, for some reason, love to talk about trading, like doing this and that, but when it comes to actually doing it, it is another story. Such traders are abundant, so practice more, and you won’t have time to fantasize about how to trade or how to be perfect.
2. Break the superstition.
More trading can help break superstitions, such as whether moving averages are support or resistance, whether previous highs are support or resistance, and whether trading should be within one's capabilities. All these are superstitions; why? You will naturally realize this through extensive practice.
3. Gain rich experiences.
There is a saying - 'If I were the screenwriter, I wouldn't even dare to write it this way.' What does it mean? Many times, you have to rely on some logic to guess the truth of what others say, which can be exhausting. A lot of practice will bring rich experiences, so when what others say is similar to your experiences, you can grasp the meaning of their words, which is much more valuable than just sitting and discussing.
We utilize the good side of mistakes - lessons learned, to control the bad side of mistakes - losses.
A good trader is one who knows how to use stop-loss orders the best.
Every trader who establishes a correct learning mechanism can grow faster than others.
Follow Su Ge closely, analyze with precise strategies, and use large-scale AI big data selection to ensure you remain invincible? The market never shies away from opportunities; the question is whether you can seize them. By following experienced and right people, we can earn more!
