After five years of trading crypto, I earned 60 million; every penny is backed by blood and tears! Some ask me, 'Can you really make money trading crypto?' I spent five years providing the answer: Yes! But the premise is that you must understand the rules. Today, I will share a few practical insights worth 60 million, hoping to help you.
10x Rolling Position Rule
: A tested method: A practical framework that rolled 30,000 into 300,000 in 3 months (with core parameters)
1. The Lifeline for Selecting Coins (90% of people fail at this step)
1. Only trade the weekly EMA21
With EMA55
The first round of pullbacks after a golden cross in the coin type
(Case Study: The moving average structure when LDO broke through 0.8 USD in January 2023)
2. Trading volume must exceed the Bollinger Bands
Middle Band 2.3 times or more
(On-chain data cleansing robot)
(Screening Method)
3. Key support levels must appear with large orders at least 3 times.
(On-chain whale monitoring tool)
(Using techniques)
2. Rolling Position Nuclear Bomb Formula (First Public Disclosure)
Initial Position: 17% of Principal (accurate to 5,100 yuan)
Floating profit of 25% immediately increases position to 34% (leverage switching model)
Second Breakthrough, Increase Position to 68% (must be combined with TD sequence)
(Verification)
Ultimate Position: 112% of Principal (Secret Techniques for Using Leverage)
3. Death Spiral Avoidance System
(A risk control model worth millions)
1. Dynamic Profit Taking Line: Immediately take half position off at a 6.8% pullback from the latest high (parameters verified through 312 real trades)
2. Leverage Decay Algorithm
: Automatically decrease leverage by 5% every 8 hours
3. Black Swan Emergency Protocol
: When the USDT premium rate exceeds 2.7%, automatic liquidation is triggered.
4. Psychological Control Techniques of Top Hunters
Price alerts must be set between 3-5 AM (the favorite sneak attack time for manipulators)
Execute 10 minutes of mindful breathing before each trade (brainwave monitoring experiments have shown a 23% improvement in decision-making accuracy)
Profits exceeding 50% trigger a mandatory 48-hour cooling-off period (to prevent dopamine addiction mechanisms)
The above framework has helped 17 trainees double their accounts in 2024.
But the true wealth code lies in the 'leverage decay slope' parameter in the second clause of the third part — this set of numbers directly determines whether you end up liquidated or return loaded.
Remember: In the crypto world, cognitive gaps are the biggest leverage.
Why do you always get liquidated when trading contracts?
Why do you always get liquidated when trading contracts? It's not bad luck; it's because you fundamentally misunderstand the essence of trading! This article condenses ten years of trading experience into low-risk rules that will completely reshape your perception of contract trading — liquidation is never the market's fault but a time bomb you set yourself.
Three Major Truths that Disrupt Perception
Leverage ≠ Risk: Position Size is the Lifeline
Under 100x leverage, using 1% of the position, the actual risk is only equivalent to 1% of a full spot position. One student used 20x leverage to trade ETH, investing only 2% of the principal each time, with three years of no liquidation. Core Formula: Real Risk = Leverage Multiplier × Position Ratio.
Stop Loss ≠ Loss: The Ultimate Insurance for Your Account
During the 312 crash in 2024, 78% of liquidated accounts shared a common feature: a loss exceeding 5% without setting a stop loss. The iron rule of professional traders: a single loss must not exceed 2% of the principal, equivalent to setting a 'circuit fuse' for the account.
Rolling Position ≠ All In: The Correct Way to Open Compound Interest
Ladder Positioning Model: First position 10% for trial and error, increase by 10% of profits. With a 50,000 principal, the first position is 5,000 yuan (10x leverage), and for every 10% profit, add 500 yuan to the position. When BTC rises from 75,000 to 82,500, the total position only expands by 10%, but the safety margin increases by 30%.
Institutional-Level Risk Control Model
Dynamic Position Formula
Total Position Size ≤ (Principal × 2%) / (Stop Loss Margin × Leverage Multiplier)
Example: With a principal of 50,000, 2% stop loss, and 10x leverage, the maximum position is calculated as 50000×0.02/(0.02×10)=5000 yuan
Three-Step Profit Taking Method
① Take profit 1/3 at 20% profit ② Take profit another 1/3 at 50% profit ③ Move stop loss for the remaining position (exit if breaking the 5-day line)
In the 2024 halving market, this strategy increased a 50,000 principal to a million across two trends, with a return rate exceeding 1900%.
Hedging Insurance Mechanism
Use 1% of principal to buy Put options while holding positions; testing has shown this can hedge against 80% of extreme risks. In the April 2024 black swan event, this strategy successfully saved 23% of account value.
Empirical Evidence of Fatal Traps
Holding a position for 4 hours increases the probability of liquidation to 92%
High-Frequency Trading: Average 500 operations per month with a loss of 24% of principal
Profit Greed: Failure to take profit in time led to an 83% drawdown of the account
4. Mathematical Expression of the Essence of Trading
Profit Expectation = (Win Rate × Average Profit) - (Loss Rate × Average Loss)
When setting a 2% stop loss and a 20% take profit, only a 34% win rate is needed to achieve positive returns. Professional traders achieve an annualized return of over 400% through strict stop-loss (average loss of 1.5%) and trend capture (average gain of 15%).
Ultimate Rule:
Single loss ≤ 2%
Annual trades ≤ 20
Profit/Loss Ratio ≥ 3:1
70% of the time waiting with no positions
The essence of the market is a probability game, and smart traders use a 2% risk to seek trend profits.
Remember: Control your losses, and profits will naturally run. Establish a mechanical trading system to let discipline replace emotional decision-making; this is the ultimate answer for sustained profitability.
If you are determined to stay in the crypto world for life and hope to one day trade crypto for a living
Please remember the following 10 iron rules; the content is not much, but every sentence is practical, share it with those who are destined!
Trading crypto has never been an easy task; every trader faces countless setbacks from the moment they enter the crypto world. Some are knocked down, while others rise again. The difference lies in whether one can transform the hardships of the process into nourishment for personal growth. Everyone experiences difficulties, but not everyone is good at reflecting and summarizing.
Gann's trading process was also filled with setbacks; looking back now brings many reflections. Today, I've specially sorted out the essence of it to share, hoping to help many traders avoid detours.
14 Key Points to Know When Trading Crypto, Helping You Smoothly Navigate the Crypto World!
Having navigated the crypto world for years, I have accumulated some insights!
1. Blind confidence and indecision: Blind confidence is the root of risk, while indecision leads to missed opportunities.
2. If long-term holding is the foundation, and short-term trading is the waves, then controlling the band is the dazzling pearl.
3. Never easily go all in at any time, as this helps maintain a calm mindset and allows you to actively seize opportunities while also providing a safe retreat.
4. Take profit from the middle, let others take the ends.
5. Overly frequent operations will inevitably lead to heavy losses; hesitance slowly drains the principal.
6. The mindset in trading crypto comes first, strategy second, and technique ranks third.
7. Markets are born in despair, grow in hesitation, and end in madness.
8. Greed is the obstacle to profit; greed and fear are major taboos in investing.
9. Opportunities emerge from declines; traders focus on the future, with cash dominating.
10. Buy based on confidence, hold with patience, and sell with determination.
11. There are no absolutely precise indicators; only retail traders with partial understanding. Indicators benefit those who know how to use them but can harm the ignorant.
12. Trading crypto without stop loss will definitely lead to heavy losses.
13. When others are fearful, we should be brave; when others are greedy, we should be cautious.
14. Beginners focus on price, experienced traders pay attention to trading volume, and experts discern trends.
Investing is not a competitive game but a personal life cultivation. There is actually another saying: Every penny you earn is a realization of your understanding of this world.
