The key essentials of three major low-risk strategies for steady success in practical trading. Wishing everyone success!
In a highly volatile market, the key to stable profits lies in low-risk strategies + strict discipline. Helping you seize opportunities and control risks in 2025.
1. Range Trading Strategy — Profit from Fluctuations
Applicable Market: When mainstream coins like BTC and ETH fluctuate between support and resistance levels.
Operational Logic:
Buy at the support level (e.g., BTC at $98,000), sell at the resistance level (e.g., $102,000), earning 3%-5% from the fluctuations.
If the price breaks out of the range, stop loss or adjust the strategy accordingly.
Key Execution Points:
Leverage ≤ 5 times, avoid excessive risk exposure.
Single Position ≤ 20%, prevent a single trade from affecting overall funds.
Strict Stop Loss: Set stop loss for long positions below the support level (e.g., $97,000), and for short positions above the resistance level.
2. Trend Following Strategy — Go with the trend and let profits run
Applicable Market: When the market enters a clear upward or downward trend.
Operational Logic:
Bullish moving averages (5-day > 10-day > 20-day) + MACD golden cross → Use 5 times leverage to go long (e.g., ETH breaks $2,600).
If it falls below key support or reverses the trend → timely stop loss and exit.
Key Execution Points:
Trend Confirmation: Combine volume, Bollinger Bands, and other indicators to avoid false breakouts.
Set stop loss below recent lows (e.g., ETH $2,550) to prevent unexpected pullbacks.
Take profit at previous highs or Fibonacci resistance levels (e.g., $2,800), don’t be greedy, exit in batches.
3. Event-Driven Trading — Quick in and out, capture news fluctuations
Applicable Market: Before and after major announcements like Federal Reserve policies and regulatory updates.
Operational Logic:
Market expecting bad news? Set up long positions in advance! (Contrarian thinking, 3 times leverage).
Close positions within 15 minutes after news release to avoid profit reversal due to emotional shifts.
Key Execution Points:
Research market expectations in advance to avoid blindly following trends.
Light positions + low leverage (≤ 3 times), prevent black swan events from causing liquidation.
Must exit within 15 minutes, do not bet on subsequent trends, lock in profits.
Summary: Core Principles for Guaranteed Profit
Low leverage (3-5 times) → Reduce liquidation risk.
Strict stop loss → Protect capital, avoid significant losses.
Quick in and out → Do not linger in trades, do not fantasize about "long positions".