Recently, there will be similar short-term explosive altcoins like NMR and PYTH that double in value.
If you are already on board, the approach is simple: when the price reaches a key resistance level, first take partial profits while adjusting the stop-loss line upwards, and patiently leave the remaining position to the market.
If you want to get on board at this time, it is also possible, but you must use the EMA moving average as the stop-loss line and calculate the position size in advance.
For example, let's say your principal is $10,000, and you control the risk per trade at 2% (i.e., $200).
The current price of the explosive X coin is $50, and the EMA moving average is at $48.5, with a price difference of exactly 3% (0.03 × 50).
So the opening position size = 10,000 × 0.02 ÷ (50 × 0.03)
= 200 ÷ 1.5
≈ 133 X coins.
That is to say, you can buy up to 133 X coins, with a position value of about $6,666, accounting for 66.7% of the total principal.
In this way, even if the price drops below the moving average stop-loss of 3%, the loss will not exceed $200.
Finally, and most importantly, the above risk is the position method; when you open a position, you know how much you might lose, while whether X coin goes up or not depends on whether the market maker of X coin is generous or not.