After figuring out how to trade cryptocurrencies, one can find a rhythm in a chaotic market, no longer swayed by price fluctuations.
Ten years ago, I entered the crypto space, making profits by luck like retail investors and losing money through blind guesses, exhausting myself without making any gains. Later, through learning and gaining insights, along with sharing experiences from mentors and peers, I gradually found clarity and established a practical investment system.
Those who can go far in the crypto world are the ones who take simple methods to the extreme. My trading strategy consists of 4 core principles that beginners can easily grasp:
1. Keep only 1 indicator: 2 EMAs are sufficient.
Only look at EMA21 (short-term) + EMA55 (medium-term), without adding other indicators. The signals are straightforward: a golden cross (EMA21 crossing above EMA55) indicates a bullish outlook, while a death cross (crossing below) indicates a bearish outlook; the simpler, the easier it is to catch the trend.
2. Choose the right entry point: only focus on the 4-hour chart, avoid choppy positions.
All decisions rely on the 4-hour chart, without monitoring shorter time frames:
Open long: EMA21 crosses above EMA55 + K-line closes bullish, both conditions must be met;
Open short: EMA21 crosses below EMA55 + K-line closes bearish, all conditions must be satisfied;
Restricted area: avoid trading in the middle of a choppy market to prevent back-and-forth losses.
3. Always set a stop-loss: do not hold onto losing positions, control losses.
Set the stop-loss at the high or low of the previous 4-hour K-line (look at the previous low for long positions, previous high for short positions), with a maximum loss of ≤ 5% of the principal. Accept small losses, never hold onto losing trades to prevent small losses from turning into significant losses.
4. Roll over profits: follow the trend, secure profits.
Use 5% of funds for the initial position, increase the position after a 5% profit, and continue to add as long as profits are sustained, following the trend until EMA crossover signals a reversal, thus protecting profits while benefiting from the trend.
⚡ Mentality rules: “Stability” is more important than methods.
Do not be greedy for full wins: accept that not every trade will be profitable, missing out is better than making mistakes;
Control frequency: a maximum of 1-2 trades per day, avoid impulsive trades;
Trust the system and maintain discipline: execute the strategy as planned, remain unaffected by short-term fluctuations, and compounding returns will come in the long run.
The “simple method” is not foolish; it simplifies complex markets into executable rules, suitable for those who do not want to exhaust themselves staring at the screen and do not wish to be bound by emotions, ensuring a high win rate.
If you are troubled by “not understanding many indicators” or “hesitating to enter the market,” you can follow the homepage of @Air 安叔 to find me. I will analyze the current BTC and ETH 4-hour charts, break down the golden and death cross signals and entry points, helping you get started quickly!
