You know, the cryptocurrency market is like other financial markets. Since it is a financial market, if we use a scientific trading system, we will have the opportunity to outperform most people.
There are three key factors here: order opening frequency, winning rate and profit and loss ratio.
Of these three, we can only choose two. There is no absolute good or bad among them. The key is to find the one that suits you.
Let’s take a look at the resulting combinations.
A. Order opening frequency + winning rate = ultra-short scalping combination.
Under this combination, the order opening frequency is very high and the winning rate is also very high.
You may think this is a good idea as soon as you hear it, but don’t be in a hurry.
The profit and loss ratio of this combination is naturally worse.
Why can a high winning rate be achieved with a high order opening frequency?
You can just find a coin on a large secondary exchange and try it out. For example, you set the take-profit to 1% and the stop-loss to 10%. In this way, your winning rate will naturally be high.
However, I don't recommend this method to most people, because this profit model does not rely on taking a large profit each time, but relies on high-frequency trading to roll over and make a profit. There is a risk here, that is, once a large loss occurs, the profits made several times before may be wasted.
B. Order opening frequency + profit and loss ratio = trial and error strategy.
This combination has a high order opening frequency and a high profit and loss ratio, but a relatively low winning rate.
I tell you, you can actually make money with a winning rate of more than 30%, relying on this combination. Open positions frequently, set very small stop losses, and stop losses and exit immediately if you find that the trend is not right. But if you do it right, you can make a lot of money.
This combination is more suitable for large one-sided market conditions.
If it is online trading, it is more suitable during the bull market rising period;
If you are investing in Heyue, it would be a good idea to short sell when the stock price plummets.
But a friendly reminder here, this style of play is very demanding on your mentality. If you don’t have a good mentality, don’t choose it.
C. Win rate + profit and loss ratio = advanced hunter.
If you choose this combination, you may only open a position once a month, but each time it is very accurate, with a high winning rate and a good profit and loss ratio. This combination is suitable for most people, or for those who are not professional in technical analysis of transactions. You just need to find the right track, and you don’t have to stare at the K-line chart every day. 👗👇
For example, Bitcoin has a strong degree of certainty. When you find that there is a sharp drop and correction every month, you can just go all in and wait. It is that simple.#BNB0098
So, everyone should choose one of A, B, or C according to their own situation.
If you choose A, don’t complain about earning little each time;
If you choose B, don’t deny yourself because of your low win rate;
If you choose C, don’t keep an eye on the market, just do what you need to do.