In December 2024, an unexpected leveraged liquidation in altcoins caused me to fall from the peak of wealth, leaving only 100,000 in the account. At that moment, I fully understood that my previous investment failures were due to the 'gambling mentality': full investment, stubbornly holding losses, and never setting stop losses. However, this time, I started anew with a militarized position management method, and today I will share the core points with everyone.
1. Be cautious in opening positions, don't gamble on luck
Each time opening a position, the funds must not exceed 10% of the principal, using 1-5x leverage, only capturing obvious volatility gains. Abandon the unrealistic idea of bottom-fishing or peak-hunting, and focus on Bitcoin ($BTC) and Ethereum ($ETH) trends above 5%. Daily maximum loss should not exceed 2% of the principal; it’s better to miss opportunities than to make mistakes.
2. Follow the three-thirds rolling position rule
(I) Reasonably split the 100,000 principal
1. 30,000 for Bitcoin trend sniper**: Use 3x leverage to make a Bitcoin trend position, immediately set a 2% stop loss and a 5% take profit after building the position, never hesitate.
2. 30,000 for cross-currency hedging**: Use 5x leverage to lock in profits through hedging strategies by taking advantage of the volatility difference between Ethereum and Bitcoin.
3. 40,000 as a life-saving fund**: This portion of the principal is the last guarantee during extreme market conditions, absolutely not to be used.
(II) Skillfully seize the rolling position timing
When the 30,000 principal earns 3,000 yuan, immediately transfer 1,500 yuan to a cold wallet, leaving 31,500 yuan to continue rolling. The core idea is to only risk the profits earned, never touching the original principal. In 38 days, I transferred out 8 times, earning a total of 120,000 in profit!
(III) Flexible adjustment of leverage
3. Master key operational skills
(I) Panic hedging profit
When Ethereum plummeted by 12%, I bought spot while opening short perpetual contracts, locking in a 6% price difference, completing the arbitrage in 24 hours. The principle is to take advantage of market panic to operate in the opposite direction to earn profits.
(II) Asset transfer after taking profit
After each profit-taking, transfer funds from the volatile Ethereum to the more stable Bitcoin to reduce capital drawdown risk. Use stable assets to make the profit curve smoother, avoiding situations where you only gain on the index but do not make money.
4. Build an anti-liquidation system
(I) Regularly check positions
Set alarms on your phone for 15:00 and 22:00 to force yourself to check positions, preventing blind operations during unstable emotional times at night. Trading should be like warfare; discipline is crucial.
(II) Strictly adhere to capital red lines
If the account net value drawdown exceeds 30% of the day's profit, immediately close positions and rest for 24 hours. Remember, preserving the principal is essential for recovery.
(III) Use tools to monitor the market
Use Aicoin to monitor 'position volume/funding rate/spot premium'; once the data diverges, resolutely refrain from opening positions. Data can truly reflect the market; market sentiment is the key indicator.
The cryptocurrency market does not sympathize with the weak, but those who follow the rules will always wait for opportunities. Non-professional traders face great risks with blind operations; this is just my personal experience sharing, not investment advice. If you also want to turn the situation around in the crypto world, you must first change the 'gambling mentality.' True winners succeed within the rules.
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