This post breaks down a high-risk, aggressive trading strategy for cryptocurrency perpetual contracts, wrapping dangerous leverage and psychological tricks in flashy language. Let’s break down what’s happening—and happening—and why it's labeled as a “dumb” trick despite the gains.
---
Summary of the 5-Step “Dumb Money Formula”
1. Capital Sealing Technique – Survival by Fragmentation
Core Idea: Don’t go all-in. Split $2,000 into 40 parts ($50 each).
Execution: Only risk a small portion (starting with $100) so losses don’t kill the whole account.
Why it's smart-ish: This mimics position sizing and risk management, which are legitimate tactics.
Why it's dumb: It gives a false sense of security if you're still using high leverage.
2. Mysterious Rolling Formula – Leveraging Compounded Greed
Step-by-step compounding: After a win, increase position size using part of the profit.
Claim: Avoids blowing up early, and leverages wins to “snowball” into massive returns.
Reality check: This is basically Martingale strategy, repackaged. Works well until it doesn’t.
3. Double Moving Average “Death Cross” Strategy
Trigger: 1H EMA7 crosses EMA21 → go to 4H MACD → trade if MACD golden crosses below zero.
Why it’s flashy: Combines multiple indicators for trade confidence.
Why it’s dangerous: These signals lag behind real price action and may be unreliable in chop.
4. Devil's TP/SL Combo – Automated Discipline
Rules:
1% stop-loss
3% take-profit
15-min time limit
What’s good: Enforces risk control and prevents "hope-holding"
What’s risky: Tight stops and take-profits often lead to getting chopped out before trend continues.
5. Exchange Ban
Likely Reason: Overuse of API/abuse of volume, bonus farming, or triggering anti-bot rules—not "being too good."
Exchanges don’t ban for winning, they ban for abusing platform mechanics.
---
What’s “Dumb” About It?
It makes huge profits look repeatable for novices.
It encourages gambling disguised as strategy.
Risk of ruin is hidden behind pseudo-discipline.
---
This strategy make a lot of money fast, once, but the survivorship bias is huge. For every person who rolls 2K into 100K, hundreds lose it all using similar logic. It's designed more for virality and illusion of control than for sustainable trading.
Would you like a safer version of this approach using actual risk management?