Here is a set of strategies tested in practice to help you sell high and buy low, making steady profits and allowing you to take control during market fluctuations!
1. Selection of trading targets
Mainstream priority: Focus only on BTC and ETH, avoiding interference from altcoins.
Liquidity advantage: Mainstream coins have strong liquidity, lower operational risk, and are more suitable for high sell low buy strategies.
2. Short strategy
Opening position: Pay attention to key moving average resistance on the 4-hour chart, such as MA60.
When MA60 continues to suppress the price, you can gradually build short positions near this moving average.
Stop-loss setting: Set the stop-loss point at the previous high position after a price spike and fall.
Example: If the resistance level is at 2440 and the price spikes to 2450 before falling back, the stop-loss can be set above 2450.
3. Long strategy
Opening position: Enter long positions in batches at the same or higher level support.
Stop-loss setting: Set at the previous low position after a price spike and rebound.
Example: If the support level is at 2320 and the price briefly drops to 2310 before rebounding, then a stop-loss can be set below 2310, such as near 2300.
4. Capital management
Single-day stop-loss control: Daily maximum loss should not exceed 20% of the total principal; if it reaches 20%, pause trading for the day.
Single trade stop-loss: Control single trade losses within 10% of the principal to avoid affecting the overall account due to a single loss.
Position balancing: All opened positions should be consistent to avoid increasing risk due to excessive positions.
5. Trading discipline
Hot coin trading: Focus on hot coins when the market trend is good, but still strictly control risks.
Profit and loss ratio setting: It is recommended to set the profit and loss ratio at 3:1 to ensure profits far exceed losses.
Single-day drawdown limit: If the loss for the day reaches 10%-15%, then pause trading and maintain rational operations.
6. Responding to market crashes
Maintain a flat position: In extreme market conditions, do not blindly catch the bottom; patiently wait for clear market signals.
Rational waiting: If there are no suitable opportunities, it is better not to trade to avoid unnecessary losses caused by emotional fluctuations.
7. Take profit and stop-loss strategy
Break-even stop-loss:
If the K-line pattern stabilizes after opening a position, you can temporarily avoid setting a break-even stop-loss; if the pattern is damaged or adverse signals appear, adjust the stop-loss to the break-even point in a timely manner.
For example: Set a break-even stop-loss after ETH has a floating profit of 20 points; set a break-even stop-loss after BTC has a floating profit of 350 points.
Trailing stop-loss:
Use 3/5 minute K-line to dynamically adjust the take profit to lock in floating profits.
For example: Start the trailing stop-loss strategy after ETH has a floating profit of 35 points and BTC has a floating profit of 500 points.
8. Trading mindset
Stay away from all-in: Pursue stable profits rather than getting rich overnight.
Overcome greed: Maintain calm and rational operations, and do not blow up your account due to temporary greed.
