After 3 years of contracting, more than 1,000 days and nights, the current stable daily yield is 95.47%, weekly yield is 331.62%, and monthly yield is 155.22%. As of March 26, 2025, I have earned more than 14 million U, starting from a principal of more than 40,000!
I have been trading cryptocurrencies for more than 5 years, from a newbie to a full-time crypto trader. I now have a stable monthly income of 7 figures and an annual income of 8 figures!
Let me tell you an executable plan: From 10,000 yuan of principal to 770,000 yuan, it only takes one month (especially suitable for novices)
The following is a method that I have personally tested: in less than a month in March, I made more than 700,000 yuan by rolling contracts!
Divide the principal of 10,000 into 10 parts of 1000
1,000 yuan can be used to roll over contracts and quickly accumulate and earn 100,000 yuan! (It will take about 1 to 3 months)
1,000 yuan in the currency circle is about 140u!
The best solution: Contract
Use 30u each time to gamble on hot coins, set a stop-profit and stop-loss, 100 to 200, 200 to 400, 400 to 800. Remember to do it at most three times! Because the currency circle requires a little luck, every time you gamble like this, it is easy to make 9 times and burst once! If you pass the three levels with 100, then the principal will come to 1100u!
At this time, it is recommended to use a triple strategy
There are two types of orders in one day: ultra-short orders and strategic orders. If the opportunity comes, then trend orders are placed.
Ultra-short orders are used for quick attacks and quick attacks. Advantages of doing 15-minute orders: high returns Disadvantages: high risks
Only big pancake auntie level
The second type of order is the strategy order, which is to use a small position, such as 10 times 15u, to do a four-hour level contract and save the profit, and then make a fixed investment every week.
The third type is mid- to long-term trend trading. If you see the right trend, go directly to the market. Advantages: more profit
Find the right point to set a relatively cost-effective profit and loss ratio
In fact, contracts are not for ordinary players.
1. Fund management must be good. With a leverage of 0-100x, short-term losses are inevitable. The single risk should generally not exceed 2%-3%, and aggressive players can reach 5%-8%. If the risk exceeds 8%-10%, the drawdown in the unfavorable period will reach 70%, and the average person's mentality collapses at around 50%. Fund management must be strictly enforced.
Many people like to trade 5x or 10x, and their trading level is above 4h. The stop loss of the trading level above 4h is generally 5%-15%, and the risk of a single transaction has reached 25%. Doing so is like seeking death. In order to ensure the risk level and high leverage at the same time, the level must be lowered to 1 hour, 15 minutes, or 5 minutes.
The smaller the level, the fewer players can handle it. Generally, 1h-4h is the limit for ordinary players, 5-15 minutes is what professional players can handle, and 1 minute is beyond the control of ordinary professional players.
2. The trading system + must pass the test. To hone the trading system, you must accumulate long-term trading experience. The sign of successful running-in is not to do anything outside the model, and the conditions are clearly defined. In this process, continuous iteration is required, and the baptism of the mainstream of the bull-bear shock market is required. Because it is leveraged trading +, t+0, and frequent trading, you need to prepare 90% of the tuition fees. Many people come up with tens of thousands to play. You must understand one thing. No matter how much the starting capital is, it is only enough to pay the tuition fee once, and there are 8 more times to come. Therefore, you must do it with a small amount of funds, hundreds or thousands of dollars, and don’t add funds when you make a profit, and withdraw funds when you make a profit. Continue to use small funds. At the beginning, the system and operations will not be particularly proficient, and many mistakes and unnecessary actions cannot be avoided. Many posts say how much they lost. In my opinion, such losses are meaningless. They just paid tuition fees once, and they haven’t touched the door. The learning curve has not been raised, which is no different from gambling.
3. Execution must be good. Similar to last year's 519, if you bet on the wrong direction once, you will be doomed. No matter how much money you made before, it will be equal to 0 as long as you don't get through such a black swan. Not to mention strict stop loss, more liquidations are caused by bottom fishing against the trend, similar to the recent luna+ which was also bottom fishing against the trend. Don't bet on low-probability events, and don't expect to achieve success in one battle.
4. Time and experience accumulation. In a bull-bear market, you need to be familiar with the market characteristics of different varieties at different stages and adjust your strategy according to market conditions.
For small investors, the time they spend in this market is very limited, so it is certainly difficult to get involved in such a professional market. I have a few suggestions.
1. Trial and error with small capital.
2. Keep the leverage below 2/3 times, make good fund planning based on the big cycle, and consider rolling positions.
3. Do large cycles at the 1h, 4h or daily level.
4. If the conditions are insufficient, do not do short-term contract trading unless you are a professional, and do not do it as a professional unless you have no other choice.
5. Without completing the first 4 items, do not invest more than 20,000 yuan. Just use the pocket money you don’t feel bad about losing in the event of a loss.
In fact, in terms of difficulty, contracts are much more cruel in terms of results than arbitrage and spot trading. Don't look at the few people at the top of the pyramid. They are all trying to trick retail investors into entering the market. Everyone knows that the success of a general is the result of the sacrifice of thousands of soldiers.
I hope there will be less tragedy and more rationality. Keep a light position, follow the trend, and stop loss. The above suggestions hope to save your wallet and prevent you from falling into the quagmire of the casino and going down a road of no return. With 2,000 yuan in your pocket, why do you have to do contracts? You can only make 20,000 yuan if you make ten times a year. Setting up a stall for a month is not better than this. Many people end up getting stuck in a dead end and have to do it. The opportunity cost is much higher than other ways. Do it according to your ability.
Proven method: A fool-proof trading rule that makes tens of thousands of U a day: (20SMA++RSI+) rejects complex indicators! Two lines create a high winning rate system
By the end of this article you will discover a powerful trading method that combines the 20-period Simple Moving Average (SMA) and the Relative Strength Index (RSI) indicator. This strategy provides you with clearer entry signals and helps confirm market momentum before you commit your money. By combining these two complementary tools, you will filter out market noise and focus on high-probability trading opportunities.
The beauty of this strategy is its versatility across different timeframes and currency pairs – but there is a specific way to coordinate these indicators for maximum effect.
20SMA and RSI Cryptocurrency Trading Strategy
When you are looking for a reliable and uncomplicated cryptocurrency trading strategy, the 20 SMA combined with the RSI method is an excellent choice.
This approach combines two powerful indicators that complement each other perfectly.
The strategy uses the 20-period simple moving average to identify trends while using the RSI to confirm momentum.
The 20SMA is used to identify trend direction, while the RS verifies underlying momentum, allowing for more accurate trading decisions.
You will find that SMA crossover signals are particularly helpful in identifying entry points, while RSI divergence analysis helps predict potential reversals.
What is special about this approach is its simplicity.
You don't need advanced technical skills, just follow clear trading rules.
To improve performance, consider using support/resistance flips as additional confirmation points to plan your entries.
Understanding the core components of the 20SMA strategy
The core components of the 20 SMA and RSI strategy are built on the principles we have just explored.
When applying this method, you will find that various SMA variations can improve your trading decisions. Some traders prefer to use the 15SMA for faster signals, while others may choose a longer period to get a smoother trend. The 15-minute chart provides an ideal balance for day traders, both to quickly gain market insights and to maintain enough data for reliable analysis.
Adjusting the RSI is equally important - changing the recommended 5-period setting to 7 or 14 periods can significantly affect its sensitivity.
Remember, these components are meant to work together as a system and not individually. The key is to find the combination that matches your trading style and time frame while maintaining the strategy's core strength in trend identification.
Set up your chart for maximum effect
Proper chart setup is critical to the success of the 20 SMA and RSI strategy.
First, choose your preferred time frame. This strategy will work on any time frame, but the 4-hour or daily charts will usually produce more reliable signals.
In the chart layout, add a 20-period Simple Moving Average and set the RSI indicator to 5 periods.
These specific indicator adjustments are non-negotiable for the correct functioning of this strategy. Make sure that the RSI has a visible 50 level as this is an important threshold for your trade confirmation.
The 20-period SMA will help identify medium-term trends while filtering out unnecessary market noise.
The Psychology Behind Price Action and Moving Averages
Understanding why the market reacts to moving averages reveals the deeper psychological forces that drive cryptocurrency trading.
Moving averages do more than just track price — they reveal the collective psychology that shapes market behavior.
When price approaches the 20 SMA, traders make collective decisions based on their expectations of support or resistance.
This market psychology is reflected in price action – the visible footprint of all buying and selling decisions.
You’ll notice that price often bounces off the 20 SMA like magic.
It’s not magic, though; it’s the collective effect of thousands of traders seeing the same signals and taking similar actions. Looking to the left, you might see a support-resistance structure that price is reacting to.
Experienced traders often supplement this analysis with a moving average crossover strategy to confirm potential entry and exit points in trending markets.
Optimizing RSI settings for the best signals
While many traders use the default RSI settings, customizing the RSI parameters to 5 periods (instead of the standard 14 periods) can significantly increase the responsiveness of the signals in this strategy.
This shorter period makes RS more sensitive to recent price changes, helping you catch trends earlier.
For an ideal RSI setup, always consider 50 as the centerline threshold.
Watch for RSI divergences when price makes new highs but the RSI does not – this often signals a reversal.
When fine-tuning your settings, keep in mind that more sensitive indicators require more attention to filter out false signals.
Combining the 5-period RSI with the 5SMA strategy can provide more accurate entry points for short-term trades.
Entry rules in uptrend conditions
Knowing when to enter a trade when uptrend conditions emerge can increase your profit potential. Every strategy requires a proper entry strategy.
First, you need to confirm two key entry indicators: the price must be above the 20 SMA, and the RSI should bottom out below 50 and start to reverse upwards.
Wait for the price to pull back to the 20SMA, which acts as dynamic support. Key point - look to the left and find some kind of price structure support (such as a trading range, a swing low).
Once you see a confirming candlestick pattern forming, place your buy stop order just above its high.
This systematic approach ensures that you enter within the trend momentum while using market conditions to your advantage.
Entry rules for downtrend conditions
To profit during falling conditions, you need to follow specific entry rules to take advantage of downward momentum.
First, confirm that the price is below the 20 SMA, which indicates a downtrend. Watch for the price to bounce off from below and test the 20 SMA.
Watch for bearish divergence signals on the RSI indicator, which should peak above 50 and begin to reverse downward. This market trend analysis helps identify suitable entry points.
Place your sell stop order below the low of the confirmation candlestick and your stop loss above its high.
For further validation, look for a reversal candlestick pattern at resistance to reinforce your bearish entry signal.
Stop-loss setting techniques to minimize risk
In cryptocurrency trading, correct stop loss setting is the basis of effective risk management.
When using the 20SMA with RSI strategy, always place the stop loss for a sell position above the high of the entry candlestick or the stop loss for a buy position below the low of the entry candlestick. This protects you from sudden market reversals.
Combine stop losses with position sizing to ensure you don’t risk more than 1%-2% of your account on any single trade. This dual approach minimizes your risk exposure while leaving enough room for winning trades to develop into profitable positions.
Consider using the Average True Range (ATR) indicator to dynamically adjust your stop loss distance based on current market volatility.
Take-profit strategy to maximize profits
When trading the 20SMA and RSI strategy, you need to implement an effective take-profit technique that matches the market conditions. Setting the take-profit to three times the amount you risk can create a favorable risk-reward ratio, maximizing gains while maintaining discipline. I would add that I am perfectly fine with a 1:1.25 risk-reward ratio, as these smaller gains tend to be more consistent.
Additionally, you can exit on the opposite signal. In a strong trend, consider using a trailing stop to lock in profits as the market moves in your favor. Similar to the Island reversal pattern, understanding the market context is important to determine the most appropriate exit strategy.
Trading plan: 20SMA and RSI cryptocurrency trading strategy
Entry rules for long trades (buy)
1. Trend confirmation: Make sure the price is above the 20 SMA, which indicates an uptrend.
2.RSI signal: Confirm that the RSI has bottomed out below 50 and started to reverse upward.
3. Pullback to 20 SMA: Wait for the price to pull back to 20 SMA, at which point the 20 SMA acts as dynamic support.
4. Confirm the candlestick pattern: Look for a bullish candlestick pattern (such as an engulfing pattern or a pinbar) that forms near the 20 SMA.
5. Entry Execution: Set a buy stop order above the high of the confirmation candlestick.
Entry rules for short trades (sell)
1. Trend confirmation: Make sure the price is below the 20 SMA, which indicates a downtrend.
2.RSI signal: Confirm that the RSI has peaked above 50 and started to reverse downward.
3. Pullback to 20SMA: Wait for the price to rebound to 20SMA, at which point the 20SMA acts as dynamic resistance.
4. Confirm the candlestick pattern: Look for a bearish candlestick pattern (such as an engulfing pattern or a pinbar) that forms near the 20 SMA.
5. Entry Execution: Set a sell stop order below the low of the confirmation candlestick.
Stop Loss Setting
Long trades: Place the stop loss below the low of the confirmation candlestick.
Short trades: Place your stop loss above the high of the confirmation candlestick.
Take Profit Strategy
Set a risk-reward ratio of at least 1:3 (for example, if the risk is 20 pips, the target profit is 60 pips).
Alternatively, use a trailing stop to lock in profits as the trade moves in your favor.
Exit the trade if the RSI shows divergence from the price action, which signals a potential reversal.
Additional Notes
The strategy performs best on the 4-hour and daily charts.
Avoid trading during major news events to reduce the risk of false signals.
Use candlestick patterns (e.g. pinbar, engulfing patterns) as additional confirmation of entry signals.
By following these precise entry and execution rules, you can confidently implement the 20 SMA vs. RSI strategy in your trading plan.
Adjusting strategies across different time frames
The flexibility of the 20SMA and RSI strategy is not limited to the take-profit method, but can also be applied to various time frames.
The adaptability of this strategy means you can make quick day trades on a 15 minute chart, or take long term positions on a daily chart.
When adjusting time frames, keep in mind that higher time frames generally produce more reliable signals but fewer trading opportunities.
Lower time frames offer more frequent setups but may produce more false signals.
Try starting with the 4-hour chart to balance reliability and frequency while building confidence in the strategy.
Be careful of false breakouts when trading this strategy as the market often tests above key levels to trigger your stop loss order and then reverses.
The currency pairs that are best suited for this system
Four major currency pairs perform particularly well in the 20 SMA and RSI strategy: EUR/USD, GBP/USD, USD/JPY and USD/CHF.
These currency pairs offer ideal trading conditions due to their liquidity and predictable trending behavior.
Major currency pairs offer the perfect combination of liquidity and predictable trends for effective technical analysis.
You will find the EUR/USD to be particularly suitable for beginners as it combines a stable trend with manageable volatility.
GBP/USD performs well during the London trading session, while USD/JPY performs well during the Asian trading session.
For best results, avoid trading exotic currency pairs that may generate volatile signals (i.e., exotic currency pairs. These pairs usually consist of a major currency paired with a currency from an emerging economy. Examples include USD/RUB, USD/BZD, etc.).
Stick with the major currency pairs as price action more reliably maintains alignment with the 20 SMA, creating clearer buy and sell opportunities.
These major currency pairs also allow for more effective stop-loss placement when trading support and resistance levels.
Screening for trades during major news events
When trading with the 20SMA and RSI strategy, you should be careful to avoid entering the market before or during major news events.
This can lead to sudden and unpredictable price swings, rendering technical analysis patterns ineffective.
Trading is suspended at least 30 minutes before major economic data releases such as interest rate decisions, non-farm payroll reports or GDP announcements.
Wait 30-60 minutes after the event to resume trading after volatility subsides. This precaution can prevent stops from being triggered by news-related volatility rather than a true trend change.
Your strategy performs best under normal market conditions, when price action follows a more predictable pattern.
Identifying and avoiding false signals
Just as you screen trades during major news events, identifying false signals is another skill required to successfully trade the 20SMA vs. RSI strategy. False breakouts occur when price briefly breaks above the 20SMA but quickly reverses, which can trap unwary traders who mistakenly believe the trend has changed.
To avoid these problems, always wait for confirmation before entering a trade. Look for candlestick closes (not just the shadows) to break through the SMA. Make sure the RSI is moving in line with price action – if there is a divergence, proceed with caution.
Don't rush into a trade. A few seconds of patience can save you from costly mistakes.
Using Candlestick Patterns to Improve Results
Combining candlestick patterns with the 20SMA and RSI strategy can significantly improve your trading results.
Candlestick pattern psychology reveals market sentiment that traditional indicators often overlook. When price approaches the 20 SMA, look for specific patterns to confirm your entry signal.
1. Doji pattern: A doji appearing near the 20 SMA indicates market indecision and may signal a reversal point, providing you with an earlier entry opportunity than using the RSI alone.
2. Engulfing pattern: shows a strong momentum shift, confirming the significance of the RSI signal.
3. Pinbar: When it points in the opposite direction of the trend and touches the 20SMA, it forms a strong blocked rebound signal that cannot be ignored.
Strategy Evaluation
Successful traders realize that measuring performance is more than simply tracking profits and losses. You need specific indicators to truly understand if your 20 SMA vs. RSI strategy is working.
Start by evaluating your win rate, risk-reward ratio, and maximum drawdown. These indicators can provide a clearer understanding than simply the account balance.
To measure performance, record your trades in a trading journal, noting reasons for entry and market conditions.
Strategy optimization is not a one-time task. Review your results regularly, identify patterns in winning and losing trades, and make small adjustments to improve your results.
Frequently asked questions
1. Can the 20SMA strategy be used with other oscillators such as MACD, Stochastics or CCI?
Yes, you can use other oscillators such as MACD, Stochastics or CCI instead of RSI in the 20SMA strategy.
The indicator combination provides alternative confirmation signals while maintaining the trend direction functionality of the SMA.
2. How does the strategy perform during periods of economic uncertainty or recession?
During times of economic uncertainty, you will notice a decrease in the effectiveness of your strategy as market volatility disrupts trends. Your strategy will not perform well during price swings caused by economic indicators and will need to be carefully monitored and adjusted to maintain profitability.
3. What is the minimum account size recommended for this strategy?
You should start with $1,000 as a minimum investment to allow for proper risk management. With an ideal leverage of 1:100, you will maintain sufficient margin while effectively implementing the strategy.
4. Is this strategy suitable for an automated trading system?
Of course, you will find that this strategy is very suitable for automated trading systems (EAs). Its clear entry, exit and risk management rules can be effectively converted into trading algorithms for consistent automated analysis.
5. How often should I re-evaluate the validity of my SMA-RSI parameters?
You should backtest monthly and re-evaluate after significant market moves. Re-evaluate your SMA-RSI parameters quarterly and make adjustments based on performance data to keep your strategy effective.
Understand Wyckoff Trading+ in one chart and identify the main players’ accumulation and distribution!
From the perspective of market dog dealers and main funds, from the three aspects of time, volume and price, we can judge why the market fell, how it should fall, when to escape the top, when to buy the bottom, etc.
Giving roses to others will leave a lingering fragrance on your hands. Thank you for your likes, attention, and forwarding! I wish you all financial freedom in 2025! #金狗势不可挡 #金价走高 #土狗冲锋
