Always stand on the right side of the market!
Bull market = Heavy long positions
Bear market = Hold USDT with no positions
Many people rely on their instincts, and then a single market movement wipes out their principal. Real experts rely on quantifiable rules!
Advanced tool: Index Filter
Forget those tons of financial reports; we only need a simple indicator to determine whether the market is heading for wealth or bankruptcy?
On the market chart, load a 100-week moving average. If the closing price is above the moving average → Enter hunting mode, look for breakout opportunities.
If the closing price falls below the moving average → Immediately retreat, hold cash and observe.
This rule acts like an extra layer of protection for your account, allowing you to act only when the trend is correct. I have tested: with the same strategy, without the filter, you make money, but the curve resembles a roller coaster; with this line added, the profit curve stabilizes upwards, with negligible drawdowns.
So, when to sell? The answer: Trailing Stop Loss!
Because in breakout trading, you never know how high the price can rise.
Sometimes the market is short, just a few bites of profit, and the price turns back down; but sometimes, the market rockets, soaring by dozens or even hundreds of points.
Use complex indicators? You can, but it's unnecessary!
What I recommend most is the percentage trailing stop loss.
For short-term trades: 10%-20% stop loss ratio.
For major trends: 30% or more stop loss ratio.
For example: If you buy a certain coin and it rises to $10,000, using a 30% trailing stop loss will automatically take profit when it drops back to $7,000! This way, regardless of how the market fluctuates, you can preserve most of your profits.
The final trump card: Position Control.
Listen up! No matter how great your strategy is, it can't prevent several false breakouts in a row. But you can break down the risk into manageable costs.
For example, if you have $5,000 in capital, set a 10% position rule = single trades not exceeding $500, holding a maximum of 10 coins at the same time.
This way, even if one trade fails, you only lose 10% of your total capital, and once you catch a real breakout, the profits will cover previous losses, plus you’ll net a gain.
This is the core logic of breakout trading in the crypto world: Strike when the market stands above the trend line, use trailing stop loss to protect profits, and control positions to survive!
Once you master this cycle, getting rich is just a matter of time!
$ETH $MYRO $ZORA
