When trading contracts, you must enter positions based on your own balance. Never hold onto losing trades; set your stop-loss properly. Contract trading is suitable for swing trading; take profits when you have them. Holding onto profits without selling is just a number; with rises, there will be falls. Entering and exiting at the right points is the key to long-term profitability. Remember, no matter how good the market is, your stop-loss must never be too small. While stop-loss might hurt, at least there's another chance; forced liquidation gives you no opportunities. There are no perpetual victors in this world, and it's impossible to profit on every trade. Developing a habit of using stop-losses allows you to go further, and as long as you are not greedy, you can make money.
1. Hardcore usage of technical indicators (direct application)
1. K-line + MACD combo
Look at the 4-hour chart to determine direction: MACD histogram breaks the 0 axis (red bars appear) + closing price stabilizes above the 5-day moving average, considered a short-term bullish signal
Find entry points on the 15-minute chart: When the 15-minute MACD shows a golden cross (DIFF crosses above DEA), and the K-line closes bullishly engulfing the previous bearish line, enter long immediately
Counter-case: If the 4-hour MACD is still a green bar, even if the 15-minute shows a golden cross, don't touch it; it's easy to get stuck
2. RSI trap prevention techniques
Overbought and oversold area correction: Generally, RSI > 70 is considered overbought, but in a volatile market, adjust to > 75 before selling; <30 is oversold, in a weak market < 25 before buying
Divergence must be checked: If the price makes a new high but RSI does not (top divergence), immediately close long positions; if the price makes a new low but RSI does not (bottom divergence), close short positions and prepare to reverse
Parameter settings: Short-term adjusted to 6 periods, reacts twice as fast as the default 14 periods
3. ATR volatility tool
Calculation formula: Stop-loss price = Entry price ± (ATR value × 2), for example, when going long, stop-loss = opening price - ATR × 2
Usage example: Current BTC price 40000, 14-period ATR is 1200, set stop-loss at 40000 - 2400 = 37600
Dynamic adjustment: When profit exceeds ATR × 3, move stop-loss to entry price + ATR × 1 to lock in some profits
2. Position management mathematical model (simple and direct)
1. The dead rules of leverage and position
Beginner's formula: Leverage multiplier = 10 - number of positions held × 2 (for example, if trading 2 varieties at the same time, the maximum leverage is 6 times)
Position calculation: Single risk = Capital × 1% ÷ (Stop-loss points × Contract multiplier)
Example: 10,000 capital, stop-loss 50 points, 1 contract per point 10 yuan, position = 100 ÷ (50 × 10) = 0.2 contracts
Extreme market conditions: When the 15-minute K-line body exceeds 2 times the average amplitude of the previous 3 bars, immediately reduce positions by 50%
2. Dynamic position increase techniques
Conditions for increasing position: Must meet 'Profit exceeds 2% + original trend unchanged'
Position increase ratio: First open 20% position, add 10% after profit, maximum 2 times (total position not exceeding 50%)
Taboo: Never increase your position when in floating loss, don't deceive yourself with 'averaging down'
3. Stop-loss and profit-taking practical strategies (direct application)
1. Triple stop-loss method
Initial stop-loss: Use ATR × 2 (when just entering)
Moving stop-loss: After reaching 3% profit, move the stop-loss to opening price + ATR × 0.5
Emergency stop-loss: If the price reverses and fluctuates more than 3% within 5 minutes, cut it directly, don't wait for indicators
2. Profit-taking without greed techniques
Partial profit-taking: First target 3% close 40%, second target 5% close 30%, remaining 30% use moving stop-loss to capture larger market movements
Look at K-line patterns for profit-taking: If 'Shooting Star' or 'Dark Cloud Cover' appears, clear all positions immediately; don't wait for target prices
Example: When going long, if the 15-minute chart shows a bearish line with a long upper shadow, immediately close half
4. Details and traps to watch out for
1. Identifying main force trap lines
Volume increase does not continue: Suddenly increase by 3% but no new highs within 3 K-lines, likely a trap, reverse to short
Volume contraction breakdown: If the price breaks below the support level but the volume is smaller than the previous 3 bars, do not chase short; wait for volume confirmation
Time window: The first 30 minutes after opening and the last 15 minutes before closing are prone to deceptive lines; look at 2 more K-lines before operating
2. Technical indicator conflict resolution
Short cycles follow long cycles: 15-minute MACD golden cross, but 4-hour MACD death cross, abandon long positions
Indicator priority: Use EMA (9 and 21) for trends, RSI for oscillation, and volume for breakouts; don't watch more than 5 indicators at the same time
Simple principle: Only take action when 2 out of 3 indicators give signals; ignore single indicator signals
5. Practical tools and quick-start techniques
1. Essential plugins
ATR Trailing Stop on TradingView: Automatically draw moving stop-loss lines
Use 'Coin Genius' on mobile: Automatically statistics the profit-loss ratio and win rate for every trade
On the computer, add 'Volume Profile': Look at the day's volume density areas to find support and resistance
2. Quick review method
Spend 10 minutes every day: Look at the 15-minute charts of 3 varieties, marking points that 'meet entry signals but were not acted upon'
Record 2 pieces of data: Number of stop-loss occurrences in a day (more than 3 indicates signals were not filtered well), holding time of profitable trades (too short indicates premature profit-taking)
Optimize 1 parameter each week: For example, adjust the ATR period this week, and adjust the RSI overbought value next week
6. Practical case studies (15-minute cycle BTC long position)
Signal appears: EMA9 crosses EMA21, MACD red bars expand, RSI rises from below 30 to above 50
Entry price: 40200, stop-loss price = 40200 - ATR (1200) × 2 = 37800 (risk 2400 points)
First target: 40200 + 2400 × 1.5 = 43800 (3% profit), close 40% at target
Moving stop-loss: Remaining position's stop-loss moved to 40200 + 1200 × 0.5 = 40800
Exit: When a long upper shadow appears on the 15-minute chart at a price of 44500, close all positions, total profit 4300 points
Remember: More technical indicators are not necessarily better. Mastering 3 indicators to perfection is more reliable than using 10 indicators at once. Before every operation, ask yourself: Are the signals clear enough? Is the stop-loss clear enough? Answering these two questions can help you avoid 80% of pitfalls.
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