In the cryptocurrency market, many investors often fall into a state of stress and continuous losses due to not fully understanding the nature of the market. Below is a comprehensive strategy system that helps control risks, improve win rates, and maintain a stable mindset during periods of strong volatility.

1. Give up the habit of "bottom fishing"

  • Do not buy in when there are no clear signs of a reversal on the weekly chart.

  • Instead of trying to 'catch the bottom' based on emotions, learn to be patient and wait for real opportunities: wait for a clear upward trend to form.

  • Actual results: Patient observation increases the win rate from 25% to over 70% in real experiments.

2. Apply a 3-layer filter before entering a trade

This filter includes:

  1. Fundamentals:

    • Projects need to have real cash flow or involvement from major institutions.

    • Avoid projects that rely solely on rumors or marketing.

  2. Technical:

    • The weekly chart must show a clear breakout, accompanied by volume at least 3 times the average.

  3. Market sentiment:

    • Current investor sentiment should be at least 30% lower than the most recent peak.

    • Avoid participating when sentiment is too euphoric or too panicked.

3. Strict capital management rules

  • Maximum position size per trade: 10% of total capital.

  • Stop loss: 5% of position value.

  • Increase position: Only when the trade is profitable ≥10%.

  • Maintain cash: Always keep at least 30% of capital in a stable state, ready for new opportunities.

This principle helps minimize losses when the market is highly volatile and reduces panic sentiment.

4. Monitor on-chain signals ('three green lights')

Before making decisions, monitor 3 on-chain indicators:

  1. Stablecoin inflow into exchanges: Over 50 million USD net inflow.

  2. On-chain withdrawals: Continually increasing for 3 days.

  3. Whale activity: Increase ≥20%.

Only when all 3 signals appear simultaneously, the trading opportunity is truly reliable.

5. Benefits of the method

  • Maximize drawdown reduction, maintain stable psychology even during bear markets.

  • Increase win rate by making decisions based on fundamental, technical analysis, and psychology rather than emotions.

  • Minimize risks when the market is highly volatile or bubbles appear.

Conclusion

Success in the cryptocurrency market does not come from luck, but from building a disciplined trading system based on data and strict rules. 'Waiting for opportunities, filtering projects carefully, and controlling capital' are three golden principles that help any investor maintain stable profits and avoid major shocks.