Not long ago, I took a cryptocurrency fan to do contracts.
His previous operations were simply a “reverse textbook”: staring at MACD, RSI, and dozens of indicators, the more he looked, the messier it got;
He manually traded seven or eight times a day, panicking to close positions after making 2 points, but stubbornly holding on after losing 5 points;
Staying up late watching the market until two in the morning, after three months the account lost 40%, and he was also exhausted.
I didn't let him learn new indicators, but instead simplified everything complicated and taught him a “simple method.”
Now he spends 10 minutes watching the market every day, and last month his win rate soared to 93%, never holding onto a losing position again.
In fact, most people in the cryptocurrency world lose because they are “too impatient and too clever,” always thinking about accurately picking bottoms and tops, resulting in repeated losses due to volatile markets. This method is exactly the opposite:
Only keep two EMA moving averages: delete all the messy indicators, just look at EMA21 and EMA55——
EMA21 determines the short-term trend, EMA55 anchors the medium to long-term direction. When the golden cross occurs, go long; when the death cross occurs, go short. The simpler the idea, the less likely it is to get confused.
Only enter positions at key points of the 4-hour K-line: don’t monitor the 15-minute or 1-hour small cycles, just look at the 4-hour chart.
When EMA21 crosses above EMA55, and the K-line closes with a bullish candle, then open a long position;
When EMA21 crosses below EMA55, and the K-line closes with a bearish candle, then open a short position. Absolutely avoid the volatile range to prevent frequent stop losses.
Never compromise on stop loss: set the stop loss directly at the high and low points of the previous 4-hour K-line, strictly control a single loss within 5% of the capital.
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