This year 2025 marks the 10th year of my full-time cryptocurrency trading. Last year, I spent a full 11 months trading contracts, going from 2000u to over 20 million now, achieving a 1000-fold profit.
First of all, for an ordinary person, it shouldn't be too difficult to take out 20,000 yuan.
In terms of time, excluding the earliest players, if we calculate based on a timeframe that ordinary people can understand, Bitcoin has gone through 4 cycles from 2016 to today.
Each cycle has basically seen a 3-6 times increase. Since we cannot buy at absolute lows or sell at absolute highs, let's estimate it at 4 times. 20,000 can turn into: 5.12 million over 4 cycles.
If the initial capital is 50,000, do you know how much it will become in 4 cycles? 12.8 million.
Look at these numbers, can they help ordinary people turn their fortunes around?
In the crypto world, to truly achieve financial freedom and realize compound interest, methods, techniques, and forming your own profit system are crucial!
Once mastered, the crypto market will be like your 'ATM', making money as easy as breathing!
After more than 10 years of trading coins, I summarize my wealth journey as follows:
The first 10 million took the longest and was the most painful; the trading system was constantly reshaped and polished, taking a year and a half.
The second 10 million took three months.
The third 10 million only took 40 days.
The fourth 10 million took only 5 days.
75% of the funds were earned in six months.
How I made money:
300U capital optimal contract approach (efficient flipping plan) [worth learning repeatedly]
Core principles: strict risk management | only trade BTC+/ETH+ | stop loss > take profit | limited to 3 times
1. Starting phase: 300U→1100U (3 levels sprint)
Strategy: 100U×3 times, 10x leverage, 7% take profit / 5% stop loss (profit-loss ratio 1.4:1)
Execution steps: Level 1 (100U→200U) Target: Profit 70U (7% take profit) Stop loss: -50U (5%) Success → Enter Level 2, failure → remaining 200U adjust strategy
Level 2 (200U→400U) Target: Profit 140U Stop loss: -100U Success → Level 3, failure → remaining 100U guaranteed
Level 3 (400U→800U) Target: Profit 280U Stop loss: -200U Success → principal reaches 1100U, enter stable strategy.
Key discipline: a maximum of 3 times! Regardless of success or failure, switch to a conservative approach and only trade BTC/ETH, rejecting altcoins (low liquidity, high spike risk)
2. Stage 1100U: Three-dimensional matrix strategy (ultra-short + swing + trend)
Capital allocation: ultra-short positions (300U) → 15-minute quick entry and exit swing positions (500U) → 4-hour level trading + fixed investment in BTC
Trend positions (200U) → weekly big opportunity strike reserve fund (100U) → emergency replenishment / sudden opportunities.
1. Ultra-short position (300U, day trading)
Strategy: 10x leverage, EMA12+MACD+(5,13,1) signal entry: Breakthrough of the previous 3 high points + volume increase
Profit: 3%~5% (flexible moving stop loss) Stop loss: 2% Mandatory stop loss trigger: consecutive 2 losses → pause for 1 hour.
2. Swing positions (500U, 4-hour level)
Strategy: 5x leverage, Bollinger Bands narrow breakout entry: 4H Bollinger Band width <20% annual line, break above upper band to go long / below lower band to go short stop loss: 1.5x bandwidth profit handling: weekly profit of 40% fixed investment in BTC
3. Trend positions (200U, weekly opportunity) Strategy: 3x leverage, waiting for extreme market conditions: weekly RSI+(14)<30 (oversold) or >70 (overbought) daily consecutive 3 same-direction K-lines 4-hour TD series +=9 (reversal signal) Take profit: moving stop loss, profit-loss ratio ≥3:1
3. Ultimate risk control (death line)
Daily loss >15% → mandatory break for 24 hours weekly profit >30% → halve leverage the next day monthly withdrawal of 20% profit → cash out for safety
Summary: The first 3 levels (100U×3 times) → quickly accumulate capital to the next phase (1100U) → ultra-short + swing + trend combination discipline > technique! Reject holding positions, reject frequent trading
This approach allows for high returns while controlling risks, suitable for players starting with 300U!
Special attention:
1. Only trade high and low for BTC/ETH.
2. Mainly use the important moving averages above the 4H level to judge the short position entry in batches. For example, if the MA60 moving average above the 4H level continues to suppress the price, then use this moving average as the timing for short entry. Stop loss: just set it above the previous high after the price spikes up, for instance, if the resistance level is 2440 and it spikes to 2450, then set the stop loss above 2450.
3. Generally use support at the same level or one level higher as the point for batch entry into long positions. Stop loss: just set it below the previous low after the price spikes down, for instance, if the support level is 2320 and it spikes to 2310, then set the stop loss below 2310, around 2300.
4. Stop loss capital: 20% of the total capital; if reached, no more trades will be opened that day. Daily operations generally focus on two trades, with the single trade stop loss controlled at 10%. The size of each position opened should remain consistent.
5. Try to enter the market in batches; do not load all bullets at once! Try to follow the trend when opening positions; when the main theme is bearish, try to open short positions, and vice versa.
① When the market trend is good, chase hot coins
② Control the profit-loss ratio, keeping it around 3:1
③ Daily stop loss drawdown should be 15%-20% of capital; if reached, no trades will be opened that day.
④ Daily review
6. Market crash: wait to enter in batches while holding no position; if there is no opportunity, just wait with no position. In such markets, not losing money is equivalent to making money.
7. Profitable stop loss: When the conditions of no stop loss in the same level of K-line pattern do not occur, you may not need to carry a profitable stop loss structure! If either of the two fails to meet the conditions, a profitable stop loss must be carried. ETH: Carry profit after a floating profit of 20 points, BTC: Carry profit after a floating profit of 350 points.
8. Moving take profit: ETH: Move take profit after a floating profit of 35 points, using 3/5-minute levels to move. BTC: Move take profit after a floating profit of 500 points, using 3/5-minute levels to move.
9. 1. Never think of hitting a big win all at once, 2. Only trade in your own market! Learn to hold cash, don't force trades, 3. Don't make overnight trades, 4. Try not to trade on weekends, 5. After being stopped out, control your mindset.
I have summarized the essence of 【RSI swing trading】, “14 charts to teach you the ultimate method of RSI swing trading.” Once mastered, trading coins with this method guarantees a 30-fold return on your account. Today, I have specially compiled the essentials to share with those destined to benefit. Make sure to save it well.
Undoubtedly, the relative strength index (RSI) may be one of the most commonly used technical indicators by global traders. It is a momentum oscillator developed by Wall Street trader J. Welles Wilder, used to capture the speed and change of price movements.
To this end, it is represented by values from 0 to 100, where values below 30 are considered 'oversold' and values above 70 are considered 'overbought'. In this way, the indicator can draw attention to potential turning points in the current trend that may lead to corrections of existing long-term trends or even trigger true trend changes.
RSI calculation formula
RSI is usually calculated using the following formula:
RSI = 100 - [100 / (1 + RS)]
Among them, RS (Relative Strength) is the average of closing prices that have risen over x days divided by the average of closing prices that have fallen over x days. The most common period is 14 days, but traders can adjust this value based on their preferences and trading styles.
RSI level
0 to 30: extremely oversold
Values below 30 indicate that the market is in a severely oversold state. Traders will focus on potential changes in the price trend, meaning the existing downward trend may turn into a new upward trend.
However, this is not absolute. Always remember that a strong downward trend may cause the indicator to remain in the extremely oversold region for an extended period. Therefore, blindly buying just because the value is below 30 is not a good strategy.
Between 30 and 50: slightly oversold to neutral
Values above but close to 30 indicate that the market is in a slightly oversold state. If the value is closer to 50, it is more likely to be in a neutral state.
Between 50 and 70: neutral to slightly overbought
Values above but close to 50 are also considered neutral. However, if the value approaches the 70 level, it indicates that the market is in a slightly overbought state.
70 to 100: extremely overbought
This area is considered extremely overbought, and the market believes that the upward trend may lose momentum and may experience a true trend reversal, turning into a downward trend.
Nevertheless, observations similar to those in oversold situations also apply here. A strong rise may attract more buyers into the market, causing the relative strength index to soar rapidly. This does not mean the market cannot continue to rise strongly indefinitely.
Again, it should be noted that one should not automatically close long positions (or open short positions) just because the indicator is in an extremely overbought state.
“Please remember, these ranges are only indicative and should never be used as purely trading signals. If there are no additional elements to confirm overbought or oversold conditions, the probability of false signals will be very high.”
What settings to use?
The best parameter selection for this indicator completely depends on personal preference, mainly based on the strategy you use and the time frame it is executed in.
The default setting is 14 periods, with an upper limit of 80 and a lower limit of 30. Typical swing traders sometimes use 20 periods, as this roughly corresponds to a 1-month trading cycle on daily charts.
Another option is to set the upper and lower limits to 80 and 20 respectively, slightly tightening the range. This will result in fewer signals, but the signals will become more reliable and reduce the occurrence of false signals.
Overbought and oversold levels
The horizontal axis represents time, and the vertical axis value ranges from 0 to 100 (which is why this indicator is called an oscillator).
◎ Above 50: the technical trend is positive.
◎ Below 50: the technical trend is negative.
It measures the speed and direction of price changes.
The general rule is:
◎ When the value is above 70, it is called an 'overbought' signal, which means the price has risen sharply in a relatively short time, increasing the likelihood of a (temporary) decline.
◎ When the value is below 30, it is called an 'oversold' signal, indicating that the price has dropped significantly, increasing the likelihood of a (temporary) rebound.
Visually, the indicator appears as follows, allowing you to identify peaks above 70 and troughs below 30:
For example, the RSI shown in the price chart of the energy company Cenovus Energy is as follows:
The red circles in the chart indicate sell signals, while the green circles indicate potential buy signals. Any trader who buys at the green circle and sells at the red circle has made a considerable profit!
This chart shows that the RSI level provides good signals mainly in sideways consolidating markets.
Three different ways to use these levels in trading strategies
We emphasize that the reliability of the RSI indicator is highly dependent on the market stage of the stock or market.
We distinguish the following stages:
◎ The price is within a sideways channel (consolidation area).
◎ The price shows a clear upward trend.
◎ The price shows a clear downward trend.
1. Sideways price channel
In the sideways price channel, we have seen classic buy and sell signals (buy at <30, sell at >70) are relatively reliable.
The stock price fluctuates in a wide sideways channel roughly between $10.75 and $7.50. Each time it reaches one of the two limits, the price either drops or rises. In this case, the RSI shows accurate signals.
2. Upward trend
In a price with a clear upward trend, the classic methods are significantly less effective. The strong upward trend in the figure below is obvious.
As long as the trend continues to rise, it is recommended to ignore sell signals. In this case, you can try to buy during temporary declines in an uptrend.
Of course, you can also use the RSI indicator to achieve this. In the figure below, we show the same chart but ignore the sell signals and mark the moments when the RSI value drops below the 50 level.
In an upward trend, when the RSI drops below 50, buying usually yields very good results and allows you to increase your position in the same stock (or other varieties).
3. Downward trend
Similar to an upward trend, in a sharply declining trend, if the price temporarily rebounds, RSI can also be used to short. In the figure below, we marked the points where the trend indicator shows a downward trend (red line) and the occasional price rebounds, at which time the trend indicator becomes neutral (gray), but never turns positive (green).
At these moments, when the RSI value exceeds 50, the indicator shows a sell signal.
“In stocks showing strong price trends (up or down), the classic lower limit and upper limit (30 and 70) are often too extreme. In this case, the 50 level is more suitable for identifying overbought or oversold periods.”
The power of divergence: early detection of new price trends
Divergence means there is a difference between the price evolution on the chart and the trend of the indicator.
Since this divergence often occurs when existing long-term trends are about to end, active investors use them to identify early changes in long-term price trends, thus opening new positions in the direction of the reversing trend.
Divergence is divided into bullish (positive) divergence and bearish (negative) divergence.
Bullish RSI divergence
Bullish divergence occurs when the price chart still shows lower lows while the RSI chart line shows an opposite trend. This is a signal indicating that the intensity and momentum of the downward price trend are weakening (at least temporarily), thus increasing the likelihood of a temporary price rebound.
Bearish RSI divergence
When the indicator shows lower highs while the price is still rising, bearish divergence occurs. This indicates that the strength and momentum of the upward movement are weakening (at least temporarily) and there may be a (medium-term) possibility of a price drop.
Hidden divergence: leveraging temporary price changes within the existing trend
This form of divergence is a derivative of classic divergence, primarily appearing in stocks that exhibit clear upward or downward trends.
Hidden divergence appears when the price temporarily drops in an upward trend or temporarily rebounds in a downward trend.
Example 1: Hidden divergence in an upward trend
The figure below shows the chart of Evercore stock, which has been in an upward trend since early June 2023. The recent price drop caused the price to form a new higher low, but in terms of RSI, it formed a lower low, resulting in bullish hidden divergence.
Example 2: Hidden divergence in a downward trend
Similar hidden divergences also appear in downward trends. Chemours stock reached a peak between July and August 2023, after which the price dropped and formed several consecutive lower lows. However, the recent price has formed lower highs in the indicator, which is identified as bearish hidden divergence.
How to use the RSI indicator for swing trading
As mentioned at the beginning, the relative strength index (RSI) is one of many technical indicators used by technical analysts to profit from short to medium-term price fluctuations in the market.
After understanding the basics of RSI, we will detail the different steps to successfully use the RSI indicator in swing trading strategies.
1. Choose the right time frame
Typical swing trading strategies hold positions for days to weeks, so positions may also be held overnight.
The default setting for swing trading is 14 periods on the daily chart, which corresponds to a time frame of 14 days.
Shorter time periods will generate more signals, but the margin of error will also increase. Using longer periods may cause you to miss some price fluctuations.
2. Determine the current trend
Trading in the direction of the main trend has the highest probability of success. For example, you can use the 200-day moving average to determine the long-term trend. For long positions, only choose stocks where the long-term moving average is on the rise and the price is above the moving average.
Another purely visual method to determine the current trend is to use an upward trend line (requiring at least three connection points).
3. Determine (and optimize) RSI signals
As mentioned above, typically, RSI values of 70 and 30 are used to identify overbought and oversold assets, which may signal potential trend changes.
However, do not be too rigid about these levels; many factors depend on the momentum and strength of the existing trend. For example, in a strong rising market, a temporary price reversal does not always lead to RSI dropping below the 30 level.
Similarly, in a strong declining market, a temporary rebound in price does not necessarily mean that RSI will rise above the 70 level.
In the above situations, when the RSI value rises from the 50 level, it may have triggered an effective buy or sell signal.
4. Do not rely solely on indicators
Technical analysis and its indicators do not guarantee trading success. Trading purely based on this indicator or any other indicator is the fastest way to incur losses!
As mentioned above, you should only trade in the direction of the long-term trend. After all, this will help you avoid many false signals.
In addition, always pay attention to price action. Chart patterns, candlestick formations, and support and resistance levels that appear simultaneously with indicator signals are important confirmation signals that can significantly improve the reliability of trading setups. Remember, the quantity of signals is not important; quality is key.
5. RSI Divergence
In the above, we have learned about the types of divergence and their meanings. Hidden divergence is particularly important when looking for entry points in a strong trend.
Hidden divergence is a derived form of classic divergence, mainly appearing in stocks that exhibit clear upward or downward trends.
Hidden divergence appears when the price temporarily declines in an upward trend or temporarily rebounds in a downward trend.
6. Accurately determine entry and stop-loss points
Develop a trading plan and execute trades as planned!
Based on your strategy, determine entry and stop-loss points in advance. This ensures you can accurately identify and limit risks. After all, protecting account funds is the top priority for every trader.
Exit points can be a predetermined fixed price level, but another option is to use a trailing stop loss to profit from the trend as long as possible and protect a larger portion of accumulated profits when the price moves further in a favorable direction.
7. Position size and risk management
Equally important as the trading setup itself is how you determine position size and its associated risks (related to the set stop-loss).
Only those traders who can properly manage losing positions and ensure losses are kept small can maintain long-term success. Losing 1% of total capital in five consecutive trades is not a disaster. However, several individual open positions that lead to losses of tens of percentage points in the portfolio can be catastrophic!
Frequently Asked Questions
1. What is the difference between RSI and Relative Strength?
The 'RSI' and 'Relative Strength' are sometimes confused because they both contain the term 'Relative Strength'. However, they refer to completely different concepts:
● Relative Strength Index (RSI): is a technical indicator used to measure the strength and momentum of price changes in financial instruments. It is an oscillator that ranges from 0 to 100. RSI helps traders identify overbought and oversold market conditions, potential trend reversals, and divergence between price and momentum by comparing the magnitude of recent gains and losses over a specified period (usually 14 days).
● Relative Strength (Relative Strength, in the investment field): is a tool for measuring the performance of one investment or asset class relative to another. It is used in portfolio management and asset allocation, so it is not an indicator like RSI. Relative strength can be calculated by dividing the performance of one asset class (or investment) by the performance of another asset to determine which assets perform stronger (outperform) or weaker (underperform) relative to the benchmark or another asset.
2. What is the difference between RSI and Stochastic RSI?
Stochastic RSI, like the ordinary stochastic indicator, is a momentum indicator primarily used to identify overbought or oversold levels. The addition of the term 'RSI' indicates that Stochastic RSI is a derivative of the ordinary RSI indicator. The difference from the ordinary stochastic indicator is that Stochastic RSI relies on RSI values rather than the price of the underlying asset.
However, the formula used to calculate the value remains unchanged.
3. Is RSI a good indicator?
The relative strength index is a valuable tool in technical analysis, but traders and investors should be aware of its limitations.
For example, it is often used to identify overbought (above 70) and oversold (below 30) conditions. However, these levels do not provide certainty. In fact, the market can remain in extreme conditions for a long time, and relying solely on RSI as entry and exit points may lead to (and often does) false signals.
This also applies to so-called divergence signals (when RSI and price move in opposite directions). This is a signal pointing to a potential reversal, but it is not always reliable. This kind of divergence can also last quite a long time, leading to missed trading opportunities or premature entries.
In addition, its effectiveness will vary depending on the selected period (usually 14 days). Shortening the period makes the indicator more sensitive but may produce more false signals; while lengthening the period reduces sensitivity but may lead to delayed signals.
This does not mean that RSI signals have no value when combined with other technical or fundamental information.
4. Can RSI be used for day trading?
Yes, it is very popular among day traders. It is a versatile technical indicator that can be applied to various time frames, including intraday charts, making it suitable for day trading strategies.
Day traders can adjust the period based on their trading style and trading assets. Shorter periods (e.g., 9 or 5) are more sensitive and suitable for ultra-short-term trading, while longer periods (e.g., 14 or 21) are more suitable for slightly longer day trading.
Ming only trades in real markets; the team still has positions available for entry speed #加密市场回调
