Core Profit Strategies

1. Trend Following and Swing Trading:

- Use technical analysis (like candlestick charts, moving averages, MACD, etc.) to determine market trends and open positions in line with trends. For example, go long when breaking through key resistance levels, go short when breaking down support levels.

- Pay attention to policies, industry hotspots, or major project updates to profit from short-term volatility.

2. Arbitrage and Hedging Strategies:

- Cross-Platform Arbitrage: Capture price differences between different exchanges, such as the price difference between DEX and CEX, buy low and sell high.

- Options Hedging: For example, simultaneously hold long contracts and put options to profit regardless of price movements. If Bitcoin rises, contract profits cover option costs; if it falls, option gains offset contract losses.

3. Reasonable Use of Leverage:

- Adjust leverage according to market volatility. Use 5-10x leverage in choppy markets, moderate increases in trending markets, but set strict stop-loss.

- Avoid blindly opening high leverage (over 20x), prioritize accumulating spot trading experience.

4. Risk Control:

- Stop-Loss and Take-Profit: Set a stop-loss point for each trade (e.g., 5% of principal) to avoid being stuck with losing positions. Single position should not exceed 10% of total capital, diversify investments to reduce risk.

- Dynamic Adjustment: Switch between long and short positions frequently during price volatility. For example, use high leverage (50-100x) for short-term profits, but strict stop-loss is required.

### Specific Operational Techniques

1. Trend Trading Strategy:

- Going Long: Buy when the price is in an upward trend.

- Short Selling: Sell when the price is in a downward trend.

2. Range Trading Strategy:

- Utilize the characteristic of price fluctuations within a certain range, sell high and buy low. Rely on support and resistance analysis, buy at support levels, sell at resistance levels.

- Utilize technical indicators such as RSI, Bollinger Bands, etc., to determine overbought or oversold conditions.

3. Grid Trading Strategy:

- Set multiple buy and sell grids at various price levels to automate trading. Suitable for highly volatile markets.

- Set upper and lower limits for the range, buy and sell progressively based on price movements.

4. Hedging Trading Strategies:

- Hold multiple positions simultaneously to hedge risks, often used to avoid losses from extreme market conditions.

- Establish opposing positions in different markets or directions (e.g., going long in spot, short in contracts).

Risk Management and Psychological Adjustment

1. Position Management:

- Single position should not exceed 10% of total capital, diversify investments to reduce risk.

- Stricter stop-loss when heavily invested (5%-10%), can be relaxed for lighter positions.

2. Psychological Management:

- Overcome greed and fear, avoid frequent trading or revenge trading.

- Strictly execute the trading plan to avoid arbitrary changes to stop-loss levels due to emotions.

3. Continuous Learning and Review:

- Continuously learn technical analysis and fundamental research, join communities to obtain real-time information.

- Daily review and summary, adjust strategy parameters based on profit and loss.

Notes

1. Choose Compliant Platforms:

- Choose high liquidity and secure compliant platforms (like Binance, OKX), utilize grid trading and stop-loss tools for automation.

2. Be Wary of Black Swan Events:

- Reserve emergency funds, be alert to risks such as exchange outages and sudden policy changes.

3. Avoid 'Guaranteed Profit' Traps:

- Be wary of 'guaranteed profit strategies' promotion, as any strategy needs to be validated against real-time markets.