Underlying transaction logic and operating rules
1. Main transaction logic
1. Extreme point operation: By calculating the extreme long and short points of K-lines at different levels, key support and resistance positions are determined, and operations are strictly performed at these positions to avoid opening orders at intermediate positions, which may lead to emotional imbalances caused by fluctuations in prices. Even if the specific liquidation point is not determined, the strategy is still based on the high probability liquidation position to select reasonable positions for replenishment and operation.
2. Independent K-line system: abandon conventional K-line analysis and adopt a special K-line system to identify the main support and resistance of the market. The larger the level, the thicker the chips, the more obvious the effect, which helps to judge the market trend more accurately.
3. The extreme pulling point where things must reverse: On the premise of excluding the favorable factors on the information surface, use the extreme pulling point of the special K line to find the extreme position of the long and short direction. This method is particularly effective in junk altcoins, with an effectiveness of more than 90%, but it is necessary to be wary of price overflow caused by uncertainty.
4. Time node and time zone judgment: By analyzing the rise and fall of specific time nodes, the possible time zone of the banker can be judged. Two sets of K-line systems are established: one with 12 o'clock at night as the closing point (UTC), and the other with 8 o'clock in the morning as the closing point (UTC+8). By switching the K-line closing time, the confusing behavior of the main force can be identified and the decision-making accuracy can be improved.
5. Metaphysical auxiliary analysis: Combine the annual flying stars and the five elements of Na Yin to assist in judging the market trend from the perspective of folklore. These analysis methods can reveal the regular changes in the market in a specific time period, such as the decline in April and May of the lunar calendar and the shock in July of the lunar calendar every year.
II. Operating Rules and Discipline
1. Limit the number of orders: limit the number of orders opened per day to avoid frequent operations that lead to emotional fluctuations. Temporary orders are prone to making wrong judgments due to the influence of the market, thus falling into financial traps.
2. Leverage and position management: Choose a leverage ratio and position ratio that suits your habits and psychological tolerance to ensure that you can still withstand fluctuations when you misjudge the direction. The current leverage of BTC and ETH is 50 times, and the position is controlled between 15%-20% to balance returns and risks.
3. Get out of the market immediately when the market trend exceeds expectations: When the market trend exceeds expectations, you need to get out of the market decisively to avoid further losses due to sunk costs. Trust your judgment before placing an order and stop loss immediately when the market trend exceeds expectations.
4. Daily target setting: Set a daily profit target, and try to rest after reaching it. If you need to continue to open orders, control the loss to no more than 20% of the profit of the day, and stop the operation immediately when the stop loss point is reached.
5. Respect your intuition and profit-taking strategy: When your intuition tells you that the price is close to the closing point, you should act decisively. At the same time, set the profit-taking and stop-loss points before opening an order to avoid missing the opportunity to close a position due to greed.
6. Do not trade on certain days: Avoid trading on certain Shinto days to reduce the risk of losses due to bad emotions or mental states.