Integrating the wisdom of (The Art of War) into crypto contract trading requires a multidimensional approach from strategic thinking, risk management, and behavioral guidelines. Based on interpretations from multiple sources, the following is a specific application framework:
1. Strategic planning: Build a trading system based on 'Dao, Tian, Di, Jiang, Fa'
Dao (macro trends and understanding)
Trend judgment: Choose fields that align with the long-term trends of the blockchain industry (such as Layer 2, DeFi), avoiding the pursuit of short-term bubbles. Macroscopically, it is necessary to clarify 'whether contract trading aligns with one's risk tolerance'.
Cognitive enhancement: Establish a basic understanding of market cycles and technical indicators to avoid blind following. As (The Art of War) emphasizes, 'win first and then fight', one should enter the market only after acquiring technical analysis skills.
Tian (timing selection)
Waiting for opportunities: Major market opportunities often require 'endurance', such as making significant moves when bull-bear transition cycles or extreme market conditions (like black swan events) occur.
Cost control: Reduce holding costs through phased building and hedging strategies, avoiding all-in during emotional peaks.
Di (trading environment and positioning)
Sector rotation: Analyze the cyclical performance of different sectors (such as public chains, NFTs) to select contract varieties with 'favorable terrain'.
Technical support: Determine opening positions based on K-line patterns (such as support/resistance levels) to avoid frequent operations in volatile markets.
Strategy and execution
Strategy adaptation: Choose high-frequency arbitrage or trend-following strategies based on personal traits (aggressive/conservative), as (The Art of War) emphasizes that 'knowing oneself' is more important than 'knowing the enemy'.
Team reference: If following trading signals, verify the long-term win rate and risk control capability of the signal provider.
Law (discipline and rules)
Stop loss and take profit: Set strict stop-loss lines (such as 5%-10% capital loss) and execute mechanically to avoid 'wishful thinking' leading to liquidation.
Position management: No single contract position should exceed 5% of total funds, diversifying risk to cope with extreme fluctuations.
2. Risk management: Implement the core idea of 'the method of invincibility'
First seek invincibility, then seek victory
As (The Art of War) emphasizes 'the method of not fighting', in contract trading, one should prioritize avoiding high-risk operations (such as high leverage, counter-trend positions) rather than pursuing short-term windfalls.
Case: Reduce leverage at the end of a bull market, avoid bottom fishing at the beginning of a bear market, and wait for clear reversal signals.
Control emotions and greed
Avoid frequent openings due to 'anxiety' or 'FOMO' (fear of missing out); one should be like 'a good defender hiding beneath the ground', patiently waiting for high-win-rate opportunities.
3. Long-term thinking: Combat uncertainty with 'time cycles'
Regular investment and regular selling
Reduce holding costs through regular investment over the long term, combined with take-profit strategies (such as partial liquidation after achieving annualized yield targets) to achieve 'decisive victory'.
Reject shortcuts and fantasies
As (The Art of War) warns, 'hundredfold coins and leveraged all-in' are 'dreams of foolish people', and one must enhance understanding through continuous learning rather than relying on luck.
Summary
(The Art of War) is essentially a 'passive strategy'—accumulating advantages by reducing mistakes rather than pursuing miracles. In the crypto contract space, 80% of energy should be spent on self-improvement (skills, discipline, mindset), and 20% on capturing market opportunities. The fastest progress is not regressing; strictly adhering to baseline thinking is essential for survival in highly volatile markets.
