Turning 5,000 into 1 million in crypto trading? Let me tell you something real! See how I made over 30 million in ten years!
1. Only do high selling and low buying of BTC/ETH
2. Mainly judge short positions based on the important moving average group above the 4H level. For example, if the MA60 moving average above the 4H level is continuously suppressing the price, then use this moving average as the timing for entering short positions. Stop-loss: Just place it above the high reached after a spike then a drop, for example, if the resistance level is 2440 and the spike reached 2450, then place the stop-loss above 2450.
3. Generally, use the support below the same level or one level higher as the point for batch entry of long positions. Stop-loss: Just place it below the low reached after a downward spike, for example, if the support level is 2320 and the spike reached 2310, then place the stop-loss below 2310, around 2300.
4. Stop-loss principal: 20% of total principal, if reached, do not open positions for the day. Daily operations generally focus on two trades, with a single stop-loss controlled at 10%. The position size for a single trade should remain consistent.
5. Try to focus on batch entries rather than going all in at once! Try to follow the trend when opening positions; when the main trend is bearish, try to open short positions, and vice versa.
① When the overall market trend is good, chase hot coins.
② Control the profit-loss ratio, keeping it around 3:1
③ Daily stop-loss drawdown is 15%-20% of principal, if reached, do not open positions for the day.
④ Daily review
6. Market sell-off: Wait in cash to enter in batches, if there's no opportunity, just stay in cash; in such a market, not losing money is equivalent to making money.
7. Profit protection stop-loss: When the day’s order has not hit the stop-loss and the same level candlestick pattern has not been disrupted, you can avoid using a profit protection stop-loss pattern! If either condition is not met, then a profit protection stop-loss must be used. ETH: Protect profits after 20 points of floating profit. BTC: Protect profits after 350 points of floating profit.
8. Move stop profit: ETH: Move stop profit after 35 points of floating profit, using 3/5 minute levels. BTC: Move stop profit after 500 points of floating profit, using 3/5 minute levels.
9. 1. Never think about all-in to get rich quickly, 2. Only trade in your own market! Learn to stay in cash, do not force trades. 3. Do not take overnight positions, 4. Try not to open positions on weekends. 5. After being stopped out, control your mindset.
Check the comments section!
❤️ Here’s another set of my practical strategies that I’ve developed over the years, achieving an average win rate of 80%. This is quite a rare achievement in the crypto trading world.
I am a full-time Bitcoin trader, my assets are in the tens of millions, and I withdraw 100,000 yuan from the crypto space every month, feeling no impact, living leisurely and freely without deceit or scheming, living the life I want.
In cryptocurrency trading, using RSI to judge tops and bottoms has always been my first choice. Using this method, I turned 500,000 into 10 million in one year. If you also like to double your investments and want to get involved in the main upward trend, you must read this article carefully!
This strategy is specifically targeted at active traders holding positions for days to weeks.
1. Identify extreme prices (bullish or bearish)
The first step is to identify extreme prices. The simplest way is to compare the price with the simple moving average (such as SMA20). SMA 20 represents the average price over the past 20 trading days. The greater the distance between the current price and SMA20, the more significant the extreme price.
The image below shows the extreme prices of Tilray Brands Inc (TLRY) stock.
Starting from March 23, the price suddenly surged and peaked on March 27, indicating an extreme upward price (green arrow), at which point the price was far above the 20-day moving average.
Similar price extremes but in bearish aspects can be seen in Biontech (BNTX) stock. The price dropped sharply, leading to extreme downward prices, significantly below SMA20.
2. 2-period RSI below 10 or above 90
Using RSI(2), we try to identify potential rebound (mean reversion) moments. We achieve this by looking for moments on the chart where RSI(2) is below 10 (bullish) or above 90 (bearish).
In the TLRY chart, we added the RSI(2) indicator. You can see that starting from February 24, 2022, its value exceeded 90, indicating an extremely overbought condition.
Additionally, on February 25, 2022, the RSI remained above the 90 level.
As for BNTX, we observed that from January 18 to January 21, 2022, RSI(2) was below 10.
Price extremes upwards or downwards, while the RSI(2) value is above 90 or below 10, are two necessary conditions for applying this strategy.
3. RSI(2) rises above 10 (bullish setup) or falls below 90 (bearish setup)
This is the last step before we determine the actual entry setup. The RSI(2) value falling from +90 to below 70 is a signal to short.
In the TLRY chart, RSI(2) was slightly below 70 after the trading day on March 28, 2022.
The rise of RSI(2) value above 30 after dropping below 10 is a signal to go long.
This can be observed in the BNTX chart dated January 25, 2022.
You can only set buy or sell orders after completing the first three steps.
4. Open position
You can only open a position after completing the first three steps.
Using buy/sell stop-limit orders can very precisely determine entry points. With a 'sell stop-limit order', we define that the stock price must first continue to drop below the signal candlestick low for the short position to be effective (taking TLRY as an example).
For BNTX, using a 'buy stop-limit order', the price must first rise above the last candlestick high for the order to become effective and executed.
For BNTX, the order was triggered on the next trading day, and just 6 days later, the price reached SMA20, which is the first target.
Depending on how you further manage your position, you can take partial or complete profits at this level. For the remaining portion, the stop-loss can be adjusted upwards.
As for TLRY, the price initially rose slightly, and the sell order was not triggered immediately. Therefore, the RSI(2) indicator again entered the oversold area on March 29, 2022.
The next day, a bearish doji candlestick formed, and RSI(2) fell below 70 for the second time.
Set a modified short entry point below this doji candlestick low, and set a stop-loss above the high point; this is definitely a consideration in this mean-reversion strategy.
Throughout this process, the position was never threatened, and SMA20 was reached on April 7, 2022.
Other similar examples of 2-period RSI trading strategies
Go long on WB
1. Price is extremely low, significantly deviating from SMA20
2. RSI(2) indicator < 10
3. RSI(2) indicator > 30 (However, due to the candlestick high indicated by the blue vertical arrow not being broken, no entry was made the next day)
4. RSI(2) falls back below 30 again
5. RSI(2) > 30
6. This time, the candlestick high indicated by the green arrow was broken on the next trading day (long entry, stop-loss set below the low price range).
7. First target reached (SMA20)
Go long on IAS
1. Price is extremely low, significantly deviating from SMA20
2. RSI(2) indicator < 10
3. RSI(2) indicator > 30
4. The candlestick high indicated by the green arrow was broken (long entry, stop-loss set below the low price range).
5. First target reached (SMA20)
Short EIGR
1. Price is extremely high, significantly deviating from SMA20
2. RSI(2) indicator > 90
3. RSI(2) indicator < 70
4. The low of the candle indicated by the orange arrow was broken (short entry, stop-loss set above the high price range).
5. First target reached (SMA20)
Important things to note when using the 2-period RSI strategy
● Ensure extreme prices are clearly visible; the greater the degree and speed of price deviation from the moving average, the higher the likelihood of a subsequent pullback movement, pushing the price back towards the moving average.
● Always follow your stop-loss! Strong trends can sometimes last longer than expected. Especially for trends with fundamental reasons, such as company performance exceeding expectations, things can develop rapidly in a very short time.
● Do not try to predict reversals in advance; patiently wait for RSI(2) to recover from overbought or oversold conditions, and always use slightly above or below stop-limit orders for the high or low points of the triggering candlestick. By doing this, you can avoid many false signals.
● Do not rely solely on one indicator to formulate a strategy but try to find other elements that support your views and setups. For example, rebounding from significant support levels on higher time frames or the candlestick patterns themselves (such as bullish hammer or bullish engulfing patterns, etc.). The more converging elements there are, the stronger the setup!
I have been in the crypto space for 10 years, and these eight iron rules are a must-read before entering every time, allowing me to avoid losses in rounds of big drops. Today I share them with friends who are destined to find this useful.
1. When entering a position, do not only look at the 'trend' of the trading candlestick, especially for short-term trades where you also need to check the 30-minute candlestick. Meanwhile, the market must stabilize and resonate at this moment before entry. For example, sometimes you see a candlestick with a long upper shadow and feel there’s no opportunity, but the next day it shoots up significantly, even hitting the limit. If you check the 30-minute candlestick, you can see the nuances.
2. When the trend and order are not right, taking a second look is a mistake. Go with the trend, and the rising order should not be disrupted.
3. If not in hot or potentially hot stocks for short-term trading, it’s better not to trade.
4. Abandon all impulsive entries. Trade your plan, plan your trades.
5. Any person's views or opinions are merely references; you must have your own thoughtful and serious analysis.
6. Lock in direction first, then select specific coins. If the direction is right, it's twice as effective; if the direction is wrong, it's half as effective.
7. Get involved in coins that are currently on the rise. Guessing the bottom is a big taboo; you always feel a rebound is imminent, followed by ultimate volatility. Stock prices always move towards areas of lesser resistance, so getting involved in coins that are currently rising is choosing a direction with less resistance.
8. After big gains and big losses, reduce positions and re-evaluate the market and yourself. Clarify the reasons for big gains or losses before acting again.
After years of trading cryptocurrencies, I've found that after big gains and big losses, reducing positions has a success rate exceeding 90%.