Everyone knows that the cryptocurrency traders in South Korea are extremely fervent, and the place is full of opportunities!! It's not easy to stand out here, and Flight is one of the best among the millions of young people. He turned $370 into $7.5 million using his self-created high-leverage trading system for small funds, which is equivalent to 500,000 to 10 billion KRW, or 50 million RMB. He also initiated a trading challenge using his method, and many people made substantial profits with his approach. He is a very famous figure in South Korea!
The story begins in 2018 when Flight dived into the cryptocurrency market with 2 million KRW. The money hadn't even warmed up in his account before he was liquidated!! In the following six months, he read a lot of books and materials related to trading, so he borrowed 500,000 KRW from his mother to re-enter the market. After several months of full-margin trading with high leverage, his account balance skyrocketed to 200 million KRW, but he lost it all during a month of poor market conditions, leaving him with only 20 million. This heavy blow made Flight realize the risks of entering and exiting with full margin. Through daydreaming and analyzing, he found a method of using small funds with high leverage for counter-trend trading. Specifically, he would only use a small portion of his account funds each time, set a lower limit, and combine it with some high-certainty strategies for trading. This way, he could ensure that he wouldn't suffer significant losses during extreme market conditions while maximizing profit potential without compromising fund efficiency! Thus, he first withdrew 14 million KRW to the bank, leaving only 6 million KRW in the trading account, and began his flying trading challenge~
The first strategy is the high-leverage seeding strategy, which is considered the core of flying trading!! While trading with high leverage, it strictly controls the proportion of capital invested in each trade to diversify risk while aiming for higher profit margins! For example, if we have $10,000 in capital ready to trade Bitcoin, we first need to determine the investment ratio, such as limiting each trade to only 1% of the total position, which is $100. Next, we choose an appropriate leverage, such as 20x leverage, which means each trade can hold up to $2,000 worth of Bitcoin. If it meets the entry signal, we can open a position. The number of individual positions opened at once should not exceed 3, and the number of openings per day should not exceed 10. The stop loss for a single asset can be set at 2%, meaning if the loss reaches $40, it should stop loss, equivalent to a maximum daily loss of $400. Some people prefer to use liquidation as a clean way to stop loss, which requires setting the opening mode to isolated margin!! Profit-taking can be done in batches or realized directly when reaching the expected price. If the certainty of the technical analysis strategy is high, this method often captures large profit margins and reduces the emotional impact of small funds on traders!! One very important point is to frequently withdraw funds and not let the account balance accumulate too much. The money earned should be deposited in the bank, especially when the account makes significant profits or accumulates a considerable amount. This behavior is very important!
The second strategy is the 'catching the falling knife' strategy in counter-trend trading. Flight believes that in key areas during a sharp downward trend, if there is a candlestick with extremely high trading volume, it is a strong signal for a short-term reversal!! Especially when two consecutive waves of high-volume candlesticks appear, the effect is even better. At this point, betting on a quick price rebound can yield a very favorable risk-reward ratio~ The key areas can be resistance or support levels, such as structural points, supply and demand zones, Fibonacci retracement lines, trend lines, or areas near previous highs and lows. These areas usually have a large number of buy limit orders and active buy orders, while there are also profit-taking orders for short positions, which will have a significant stopping effect on the price!
This is the daily chart of Bitcoin. Here, one large bearish candlestick fell directly from $43,600 to the key level of $30,000. This was also a key support level from before, with more than a 30% drop in just one day, leaving almost no surviving bulls in the market!! This huge plunge with a large bearish candlestick hit an important structure point that deviated significantly, presenting an excellent counter-trend knife-catching trading opportunity! If one could accurately catch the bottom here, a profit of 10% within 30 minutes would not be a problem. If a high-leverage strategy is used, the position can even double in a short time. This is the benefit of capturing the counter-trend knife, as the market provides timely feedback. Some continuous downward trends with high trading volume often mark the start of another trend~
The third strategy is to use the divergence of trading volume and RSI to confirm trend reversals. This strategy is similar to the demigod MACD strategy. RSI indicates whether the market is overbought or oversold, while trading volume reflects market activity directly!! When prices reach new highs, but RSI and trading volume are decreasing, it indicates that the market is overbought and momentum is weakening. Continued buying power starts to diminish, and when this divergence occurs, the probability of a price reversal is relatively high. When the closing price of the candlestick falls below the trend line or the second moving average, it signals to close positions or enter short positions. The parameters for the moving averages here are 7/20/50/100/200 moving averages. For convenience, we can find a merged indicator of 5 moving averages in the TradingView indicator search bar called 5MA. In Flight's view, the hallmark of a sustained upward trend is when it touches the trend line, accompanied by an increase in trading volume and a rapid distance from it. If the candlestick continues to oscillate near the trend line or moving averages, there is a high likelihood that it will start to decline!! Alright, Flight's flying trading has five strategies, and this time three have been discussed. If everyone is interested, we will continue to explore his VPVR strategy and stock-coin double-bottom strategy in the next episode~
