When you only have 300U in hand and see others flaunting their profitable contracts, do you feel envious and anxious? In fact, small funds have an advantage in the contract market; they are flexible and can turn around easily.
In my seven-year trading career, I have seen too many cases where 300U started and ultimately multiplied by a hundred times, and I have also witnessed the tragedy of the same principal dropping to zero in a few days. The difference between the two lies not in technical skills but in whether one has mastered the core logic of 'controlling leverage with discipline'.
Stage One: The first sprint from 300U to 1100U.
If small funds want to accumulate capital quickly, they must seize 'short, flat, and quick' opportunities, but the premise is to lock in the risk. These three stages are like beginner tasks in a game; only after completing them can higher-level gameplay be unlocked.
First Stage: Exploring with 100U.
Open 10x leverage, only trade BTC or ETH - these two cryptocurrencies have strong liquidity, and the risk of spikes is 80% lower than altcoins. Set a 7% take profit (earn 70U) and a 5% stop loss (lose 50U), with a risk-reward ratio of 1.4:1; as long as the win rate exceeds 40%, you can be profitable.
Key action: Wait for the 15-minute K line to stabilize above the EMA12 before going long; if it breaks below, go short, and never open a position based on feelings.
Second Stage: 200U to expand gains.
If the first stage is successful and the principal becomes 200U, repeat the strategy but adjust the take profit to 6% (earn 120U) while keeping the stop loss at 5% (lose 100U). This step is to reduce greed and ensure profits are realized. If it fails, stop trading immediately with the remaining 100U, review and try again the next day.
Third Stage: 400U sprint target.
After succeeding in the first two stages, the principal reaches 400U, and use 5x leverage to proceed steadily. At this point, switch to judging trends with the 4-hour K line; go long above the middle band of the Bollinger Bands, short below it, take profit at 5% (earn 200U), and stop loss at 3% (lose 120U). The core of this stage is 'exchanging time for space', avoiding frequent operations.
Iron rule: Fail cumulatively in three stages twice, immediately switch to spot mode. Small funds should be most wary of 'rushing to recover losses'; preserving the principal is more important than anything.
Stage Two: 1100U Stage: Three-stage trading structure to roll profits.
When the principal breaks through 1000U, you can no longer rely on a single strategy. My designed 'Ultra-short + Swing + Trend' three-dimensional structure can capture opportunities across different time frames while controlling risk.
1. Ultra-short trades (300U, intraday trading)
Use 10x leverage to seize 15-minute level fluctuations; the indicator combination is 'EMA12 golden cross + MACD red bars expanding'. The entry point must meet the condition of 'breaking above the high points of the previous three K lines with increasing volume'; take profit at 3%-5% and stop loss at 2%.
Circuit breaker mechanism: Stop after 2 consecutive losses for 1 hour to avoid emotional trading. The essence of ultra-short trades is 'picking sesame seeds', accumulating small amounts rather than getting rich overnight.
2. Swing Trades (500U, 4-hour cycle)
5x leverage with Bollinger Bands strategy: When the 4-hour Bollinger Bands width narrows to within 20% (indicating a potential trend change), break above the upper band to go long and break below the lower band to go short. Set the stop loss at 1.5 times the bandwidth (for example, if the bandwidth is 3%, stop loss at 4.5%), and invest 40% of profits weekly in BTC - this step is to anchor profits in Bitcoin against fluctuations.
3. Trend Trades (200U, weekly opportunities)
3x leverage only waits for extreme market conditions: weekly RSI below 30 (oversold) or above 70 (overbought), and daily line shows 3 consecutive K lines in the same direction. At this time, use the 4-hour TD sequence 9 as the entry signal. Once this type of trade succeeds, the risk-reward ratio is at least 3:1, using the 50-period moving average for trailing stop loss to let profits run.
Capital allocation logic: Ultra-short trades earn quick money, swing trades ensure stable growth, and trend trades seek great opportunities. The three complement each other to avoid missing out on certain market conditions.
Stage Three: Risk control lifeline: These disciplines can help you survive a bear market.
90% of liquidations in the contract market are not due to poor technique but because of 'loss of control'. I summarize three iron rules that must be engraved in your bones:
Mandatory stop trading after a single-day loss exceeds 15%.
Set an alarm, calculate total profit and loss once before the daily close; if it exceeds 15%, immediately shut down the computer and rest for 24 hours. Operations made when emotions are in turmoil are 9 out of 10 likely to be wrong.
If weekly profits exceed 30%, reduce leverage.
Making money is more dangerous than losing money; greed can make people forget risk. At this time, lower leverage from 10x to 5x, wait until next week to restore it, which is equivalent to insuring the profits.
Withdraw 20% of profits every month.
The money left in the account is just a number; withdrawing to the bank card is real money. Even if you only earn 100U, you should withdraw 20U - this action can strengthen the awareness of 'realizing profits' and avoid profit reversal.
Fourth Stage: Identifying trend reversals: The key from 'being cut' to 'harvesting'.
Retail investors are most likely to be liquidated in a 'false breakout', for example, seeing a 'cup and handle' pattern and chasing the trade, only to be trapped at a high point. In fact, there is a simple yet effective technique for judging trend reversals: structural breakdown.
When the price continuously hits new highs, but the MACD red bars are getting shorter (top divergence), and at the same time, the 4-hour K line breaks below the previous low - this indicates structural breakdown, meaning the upward momentum is exhausted, and it’s time to short. Conversely, if the price hits new lows but the MACD green bars shorten, and the K line breaks above the previous high, it’s a signal to go long.
Take profit technique: Use the 50-period moving average for trailing stop loss; as long as the K line does not break below the moving average, hold on, and exit immediately when it does. This method can capture 80% of trend profits without regretting an early exit.
In conclusion: The essence of contracts is 'using rules to combat human nature'.
The core of starting with 300U is not to find perfectly accurate indicators but to establish a closed loop of 'having basis for opening positions, having a bottom line for stop loss, and having a plan for taking profit'. I have seen too many technical experts fall due to greed, while I have also seen average retail investors earn steadily through discipline.
Remember, in the contract market, what the operators fear most is not your technical skills but your ability to 'not be greedy, not panic, and not cling to battles'. If you can do this: calculate stop loss before every trade, actively withdraw part of the profits after earning, and stop trading after consecutive losses - even if your principal is only 300U, you can survive in this market longer than most.
