Always stand on the right side of the market!
Bull Market = Heavy Long
Bear Market = Hold USDT
Many people rely on their feelings, and then a single market movement wipes out their principal. True experts rely on quantifiable rules!
Advanced Tool: Index Filter
Forget about tons of financial reports, we only use a simple indicator to determine whether the market is going to make money or go bankrupt?
On the main chart, load a 100-week moving average. When the closing price is above the moving average → Enter hunting mode, look for breakout opportunities.
When the closing price falls below the moving average → Immediately pull back, hold cash and wait.
This rule acts like a protective shield for your account, allowing you to only act when the trend is right. I have tested: using the same strategy without a filter, you can make money, but the curve is like a roller coaster; with this line added, the profit curve goes straight up smoothly, with ridiculously small drawdowns.
So, when to sell? The answer: Trailing Stop Loss!
Because in breakout trading, you never know how high the price can go. Sometimes the market is short-lived, just a few bites of profit, and the price turns around and crashes down; but sometimes, the market is like a rocket, soaring dozens or even hundreds of points.
Use complex indicators? You can, but it's unnecessary!
What I recommend most is percentage-based trailing stop loss.
For short-term trading: 10%-20% stop loss ratio.
For large trends: stop loss ratio over 30%.
For example: if a coin you bought surges to $10,000, using a 30% trailing stop loss will automatically take profit when it drops back to $7,000! This way, no matter how the market fluctuates, you can safeguard most of your profits.
The final trump card: Position Control
Listen up! No matter how good your strategy is, it can't prevent several consecutive false breakouts. But you can break down the risk into manageable costs.
For instance, if you have $5,000 in capital, set a 10% position rule = no single trade exceeding $500, holding a maximum of 10 coins at the same time.
In this way, even if one trade goes bust, you only lose 10% of your total capital, and once you catch a real breakout, the profits will cover all previous losses, plus you can make a net gain.
This is the core logic of breakout trading in the crypto world: strike when the market is above the trend line, use trailing stop loss to protect profits, and survive with position control!
Once you successfully run this cycle, getting rich is just a matter of time!
