Core viewpoint:
Trading cryptocurrencies is not gambling; it's a 'probability game'..
90% of profits come from 10% of trades; the key is to capture major trends and avoid frequent trading..
I experienced the bull markets of 2017-2018 (60,000 → 1 million) and 2020-2021 (10 million → 20 million unrealized profit), and turned 200,000 into 20 million in 2024. My methods are extremely simple, but 90% of people cannot do it because they always want to get rich faster.
1. Capital management: The core of perpetual profit.
1. Diversification strategy: 5 portions of capital, only invest 1 portion each time.
Each trade should not exceed 20% of total capital (for example, if the principal is 1 million, the maximum investment per trade is 200,000).
Stop loss at 10%, meaning a single loss does not exceed 2% of total capital (200,000 × 10% = 20,000).
If you make 5 consecutive wrong trades, you only lose 10%, ensuring you won't be liquidated due to short-term fluctuations.
Why is it effective?
Avoid 'all-in' to prevent large losses (as with LUNA, FTX disasters).
Maintain a steadier mindset, not letting short-term losses affect judgment.
2. Trend trading: only trade one type of pattern.
2. Go with the trend, don't take counter-trend positions.
Uptrend: Every pullback is a 'golden pit', buy low and sell high.
Downtrend: Every rebound is a 'trap', never catch the falling knife.
Case study:
In October 2023, BTC rose from 25,000 to 35,000; I only added positions when it pulled back to 30,000, avoiding the extremes and only capturing the middle.
In April 2024, when ETH broke 4,000 and retraced to 3,800, I added positions and eventually profited from a rise to 5,000.
3. MACD + moving average to determine entry and exit.
Buy signal:
MACD golden cross (DIF crosses above DEA) and breaks above the 0 line.
Price stabilizes above the 30-day moving average (medium-term trend).
Sell signal:
MACD death cross (DIF crosses below DEA) and breaks below the 0 line.
Price breaks below the 10-day moving average (short-term trend reversal).
Applicable coins: mainstream coins like BTC, ETH, SOL, avoid small coins.
3. Position control: increase positions with profits, never average down on losses.
4. Pyramid adding position method.
Initially invest 20%, confirm the trend, and add 10% for every 10% increase.
Do not add to losing positions, avoiding 'buying more as it falls, ultimately getting stuck'.
Case study:
In January 2024, buy BTC at 30,000 for 20%, add 10% when it rises to 33,000, add 10% again at 36,000, and finally sell all at 45,000.
Wrong example: In 2022, when LUNA crashed, many people kept buying 'more as it falls', resulting in total loss.
5. Double your capital, let profits run.
After doubling the principal, withdraw the principal (e.g., if 1 million becomes 2 million, withdraw 1 million).
Continue to roll over remaining profits, maintaining a steadier mindset, not afraid of drawdowns.
4. Backtesting strategy: Use data to validate methods.
6. How to backtest?
Select coins (like BTC, ETH).
Set rules (e.g., buy on MACD golden cross, sell on death cross).
Use TradingView to backtest the past 5 years of data, calculate win rate and profit-loss ratio.
My backtesting results:
Win rate of 65%, profit-loss ratio of 3:1 (earning 3 for every 1 lost).
Annualized return of 200%+ (compounding effect).
Why is backtesting important?
Avoid 'feeling trading'; use data to prove the effectiveness of the strategy.
Identify weaknesses in the strategy (like high losses in volatile markets).
5. Mindset management: 90% of profits come from waiting.
7. Avoid short-term trading, focus on trends.
Short-term trading = gambling; frequent trading eats into profits with fees.
Long-term trading = picking up money; capturing 1-2 major trends can lead to financial freedom.
Case study:
In March 2020, BTC fell to 3,800. I bought in batches, and by June 2021, it reached 60,000, yielding 15 times return.
In September 2023, bought ETH at 1,600, and reached 5,000 in 2024, yielding 3 times return.
8. Weekly review, optimize strategy.
Record every trade (reasons for buying and selling).
Adjust parameters (like moving average periods, MACD settings).
6. Ultimate advice: Survival rules in the crypto circle.
Only invest spare money, not affecting life.
Don't touch contract leverage; spot trading is enough to get rich.
Don't chase hot coins (like MEME coins), only trade mainstream coins.
Patiently wait for the big trend; there are only 2-3 opportunities in a bull market each year.
Double your principal, secure profits, and maintain a steadier mindset.
Summary: The clumsy method is the true shortcut.
Capital management (diversification + stop-loss) → Stay alive.
Trend trading (MACD + moving average) → Capture major market movements.
Backtesting optimization (data validation) → Improve win rate.
Mindset control (avoid frequent trading) → Hold onto profits.
The truth about making money in the crypto circle:
It's not about relying on 'get-rich-quick myths', but rather 'making fewer mistakes + seizing a few big opportunities'..
Using clumsy methods can actually outperform 99% of investors..
If you can strictly follow this strategy, turning 1 million into 10 million in the next bull market is not difficult.
People are more important than anything! If you are still wandering in confusion, you might as well check @crypto广哥 to help you seize every wave of the bull market.