Learn this method for perpetual contracts: (rolling positions + Martingale strategy + must-account method), and it will become your 'ATM'!
Proven method: In March 2025, for a whole month, I only did contract rolling with compound interest, starting with a small amount of $3000, earning over $120,000, equivalent to over 800,000 RMB! (Very suitable for beginners, simple and practical, with a success rate of 98%!)
1. Rolling Positions
Divide the principal of $10000 into 10 parts, $1000 each.
Use $1000 for rolling contracts and quickly accumulate to $100k!! (It takes about 1 to 3 months).
In the cryptocurrency market, $1000 is around 140U!
Recommended optimal strategy: Contracts.
Use $30 each time to bet on popular coins, ensuring proper stop-loss and take-profit; $100 becomes $200, $200 becomes $400, $400 becomes $800. Remember to do this a maximum number of times! Because in the cryptocurrency world, a bit of luck is necessary. Each time you go all in like this, it’s easy to win 9 times and lose once! If you can pass all three rounds with $100, then your principal will become $1100!
At this time, it is recommended to use a three-tier strategy.
Engage in two types of positions: ultra-short and strategy positions. If an opportunity arises, then enter trend positions.
Ultra-short positions are used for quick strikes, trading on the 15-minute level has the advantage of high returns but comes with high risks.
Only trade Bitcoin and major altcoins.
The second type of position, strategy position, is to use a small position, such as $10 at 15x leverage, to trade contracts at the four-hour level, saving profits for regular investments in Bitcoin weekly.
The third type is trend positions, medium to long-term trading. When you identify the right opportunity, the advantage is to earn significantly.
Find the right entry point and set a high risk-reward ratio.
2. Martingale Strategy and Must-Account Method.
Strategies to roll $100 into $1000 with guaranteed profits; this strategy silences 99% of people! (Martingale strategy, a strategy that scares whales, sharing it with everyone.)
Start with $100, set a 100% take profit for each order (double and run).
Lose and double down (100→200→400→800...) win once to recover all losses + net gain of 100U.
Be prepared with funds for 10 rounds (same probability as losing 10 rounds and being struck by lightning 3 times).
Do not look at market conditions, do not look at policies, close your eyes and enter; this time go long, next time go short, repeat operations, with a 50% probability of winning or losing! As long as you win once, all losses will be covered, and you will earn $100.
Mathematics does not lie:
1 profit = covers all losses + earns an extra $100.
10 instances of error tolerance = your funds have ten more lives than the market.
But! Newbies must pay attention to these 3 life-and-death lines:
Never increase your position (if you plan to double, it must double).
Withdraw profits immediately (100% profit-taking is sacred).
At least prepare enough to play 10 rounds
Are you brave enough to try?
Reflections and insights on contract trading after over a decade of cryptocurrency trading.
Contracts are essentially just a tool. 1.
Before I started engaging with contracts, I heard all sorts of opinions. Some people think contracts are like a flood beast, while others believe they are a money-making machine. In reality, they are just a tool, and the key lies in how to use them. Typically, large funds use them for asset hedging, but many people treat them as a quick route to wealth (I initially had this idea too). This is a market where there are winners and losers; with transaction platform fees and potential market manipulation by whales, retail investors find themselves in a tough spot. Saying contracts are akin to a meat grinder is not an exaggeration. If you want to survive in this field, you must master the survival rules; only the fittest will survive.
2. It is essential to set a stop loss when opening a position (please repeat this in your mind three times).
The stop-loss range can be set between 1 to 100 points, specifically determined based on the holding ratio.
3. The so-called 'Eternal Earning Method'
Set the stop loss at the original price, first use one-tenth of the position for a trial position. If the trend judgment is correct, continue to increase the position, and take profits during pullbacks. It sounds beautiful, but the reality is very harsh. First, judging the trend is extremely difficult; the market mainly operates with choppy movements, and opportunities to seize one-sided trends are scarce. Secondly, even if the judgment is correct, continuing to increase positions may raise the original opening price. A slight pullback may trigger the original stop loss, and the transaction fees from frequent operations can be staggering. Although getting it right once may multiply the principal several times or even hundreds of times, consistently doing so will ultimately just make you work for the trading platform, with no sustainability unless you earn a profit and leave immediately.
4. Newbies often dislike setting stop losses.
I have also gone through this stage; once the emotion of loss aversion is amplified, it can lead to a mad rush to trade, causing risks to expand infinitely. Once the capital chain is broken, you can only watch as you get liquidated, and often you are liquidated before you even realize it. Initially, you only wanted to earn a fraction of profit but ended up losing all your principal.
5. There are methods for eternal profit in contracts, but they are definitely not within the grasp of newcomers to this field.
Many people participate in contract trading to use small funds to earn large sums. To earn big money, there are only two paths: one is to win with position size, which is to go heavy; the other is to win with price amplitude, such as in a major drop like 312 or 519, or in a significant rise from 10k to 60k. To seize such amplitude movements, any analysis may be useless; there is only one way: do not take profits. The most sophisticated profit-taking method is to not take profits, but this is extremely counterintuitive. 100 times, or even 90 times, may lead to losses or break-even; I cannot do it either. If the position size is small, even with a large amplitude, you cannot make big money; if the position size is large, a small amplitude is useless and also increases the risk of liquidation. All those who earn big money are experts at balancing position size and amplitude.
6. The market is unpredictable, like an army with no constant strategy and water with no constant form.
The market always develops towards the direction of least resistance; betting on trends and guessing sizes is essentially no different. Learning a lot of technical analysis may not be useful. Being able to read candlestick patterns and understand some basics is generally sufficient. Technical analysis is not difficult; just remember this: if the trend is upward, it will continue to rise; if the trend is downward, it will continue to fall; if it rises significantly but pulls back slightly, it will rise even higher; if it falls a lot, but only rebounds a bit, it will continue to fall. The larger the cycle, the more effective this rule becomes. Understanding this means mastering the core principles of technical analysis.
7. The only thing that can truly make people earn big money is being in the trend.
Engage in rolling positions in trends; while it's not a problem to trade back and forth with small positions in a choppy market, if you develop this trading habit, you'll find it hard to hope for wealth in your lifetime. Although short-term trading can bring quick profits, it can also lead to rapid losses; over time, you may earn less than you pay in transaction fees. If you believe you are the chosen one, then go ahead and try, but know that losing money often starts with winning.
8. The timing of entry is very important; many operations that lead to losses are due to the fear of missing out.
When you have no position, wait for a rebound during a downturn before opening a short position; remember not to chase the dip. Similarly, wait for a pullback before entering when prices are rising; do not chase the rise. This might cause you to miss some strong trends, but most of the time, it will be safer. However, many people only see profits and ignore risks, and then blame others for their missed opportunities.
9. Do not be afraid.
Many people fear losing in the futures market and become hesitant to open positions. When they trade again, they become timid and indecisive. Losses can make the purpose of actions too strong, creating an excessive desire for results, always thinking about making profits and avoiding losses, attempting to be right every time; this mindset makes it impossible to profit. The ancients said, 'Do not rejoice in gain, nor mourn in loss.' In the trading field, this can be interpreted as: do not be joyful over profits or sorrowful over losses. When your mind is calm enough, you will achieve success. Approach trading with the same enthusiasm and passion as your first time trading futures, without fearing the wolves or tigers. If you are wrong, set a stop loss; if you are right, hold on. Do not rush to exit before the trend reverses; otherwise, you will only miss out.
10. Passion.
No matter what you've experienced, keep your enthusiasm and passion alive, holding onto your beautiful aspirations for life. Be as full of ambition as you were when you first started your job, and as bold in love as when you first fell in love. Many things in life, whether in career or relationship, may not yield results; most likely, there will be no results, but if you don’t strive and give, there will definitely be no results. Just focus on doing what needs to be done without overly worrying about the outcomes.
11. Many people are constantly thinking about opening positions, and even full positions; for them, being out of the market is more uncomfortable than losing money.
In fact, the time for trending markets is often short; controlling drawdowns is most important. How to control drawdowns? Staying out of the market is the best method. Don't always think you need to capture every market movement; catching one or two opportunities a year is enough. Missing opportunities is very normal, so don't regret it. As long as you are still in this market and live long enough, there will be plenty of opportunities in the future. Time is the only code for retail investors; maintain a calm mindset, be patient, and making money is just a side effect; enjoying life is fundamental.
12. The mindset and insights of trading.
In trading, what matters more is the mindset; knowledge is like techniques, while mindset is the inner strength. Just as Qiao Feng can defeat several Shaolin monks using Taizu Changquan due to his deep inner strength, having the right vision is not very useful. What matters is how to act once you see it correctly, and how to react when you see it wrongly. How to maintain resolve in holding positions, how to have a good mindset, and how to not fear missing opportunities or pullbacks... If you always have a mindset of wanting to win and fearing to lose, it will be very difficult to make money in this market. Some things may take time for newcomers to understand, but once you spend enough time in this market, you will realize that these are all truths.
I am Mu Qing, having experienced multiple bull markets and possessing rich market experience in various financial fields. Follow Crypto Mu Qing, where you can pierce through the fog of information and discover the real market. Seize more opportunities for wealth, discover truly valuable opportunities, and don't miss out on regrets!
To truly make money in the cryptocurrency market, as a trader, you must know: the market rewards not your predictive ability, but your money management skills!
Without further ado, let's get straight to the point!
Why do many people disappear from the investment market after a few months? Or after losing everything, they raise more money to continue trading, only to lose again, even borrowing to invest and falling into a death spiral, then leaving the market forever?
Newbies often rely on social media, friends' recommendations, or hot topics (such as cryptocurrencies or meme stocks), influenced by survivor bias and 'wealth myths,' blindly following trends and lacking independent analysis skills. After making small profits early on, they often mistakenly believe they are 'gifted,' increasing leverage and making risky moves, expecting to double their returns overnight, while ignoring the value of long-term compounding and not wanting to grow rich gradually.
The difference between professional traders and retail investors is that the former always ensure proper risk management, while the latter often lack risk management.
The essence of trading is a probability game; the essence of investing is turning knowledge into realization. The market always punishes all speculative psychology; those investors who survive usually possess discipline, continuous learning ability, and respect for market risks.
When you first enter the market, you must understand that if you do not learn, do not have your own trading system, and do not possess risk management skills, you will eventually lose everything and leave the market forever. The outcome of $10,000 and $10,000,000 will be the same.
- What is risk management?
Risk management refers to the systematic identification, assessment, and control of potential risks in investments to minimize losses and maximize returns. It ensures survival and capital preservation even in the case of consecutive erroneous predictions, preventing account zeroing and bankruptcy due to uncontrollable factors.
1. The essence of risk management: it is not about avoiding losses, but controlling the extent and frequency of losses to ensure long-term survival. High returns inevitably come with high risks; if you avoid risks altogether, you might as well not invest at all. For example, always holding cash risks missing every opportunity to buy at the bottom. Frequent trading incurs increased costs (such as fees and slippage).
Thus, 'avoiding losses' is a false proposition; we are not pursuing 'not losing money,' but rather ensuring that losses remain within acceptable limits, meaning 'understanding losses clearly and controlling them.' This allows for long-term survival in the market and realization of compound growth.
2. The goal of risk management: to protect oneself using a set of certain rules in an uncertain market, allowing for long-term survival in the market, not to avoid losses.
Losses are an inevitable cost of the market; every strategy has its losing periods, even for Buffett and Simons. Attempting to 'never lose' can lead to excessive conservatism, merely holding cash and missing opportunities.
Shifting from 'predictive thinking' to 'responsive thinking' is key for long-term survival; acknowledge ignorance and that the market is unpredictable! Do not pursue 'precise bottom-fishing and top-timing' but rather have a 'response plan regardless of how the market moves.' Focus on the process rather than individual outcomes; a good decision does not equal a good result (short-term loss may occur); a bad decision does not equal a bad result (luck may temporarily mask mistakes).
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1. **Controllable Losses** → Avoid 'sudden death'. 2. **Expected Profits** → Capture trends. 3. **Long-Term Compound Interest** → Become the ultimate winner.
The market is like a battlefield; those who survive are not the bravest but the most disciplined. The highest level of risk management is to execute like a machine, eliminating 'this time is different.' Long-term adherence to correct rules will eventually favor us.
Jesse Livermore's lesson: 'I went bankrupt not because I was wrong, but because I didn’t follow my own rules.'
2. How to do risk management? And the three dimensions of risk management.
1. Money Management
How to maximize returns with limited funds while keeping risks controllable?
Contracts: Newbie learning period 1%, practice period 2%-3%, profit period 5%, maximum single position ratio 10% (exceeding this is very risky).
Spot: Build positions in batches (3 to 5 equal parts) + 20% cash position (to guard against black swan events).
Why do most people get liquidated due to position control? - Going all in: betting 100% of a single position, leading to zero with a single mistake. **Increasing positions against the trend**: doubling down after losses (Martingale), accelerating bankruptcy. X **No stop-loss plan**: allowing losses to expand, ultimately forced to cut losses. X Emotional adjustments: expanding after profits (increasing positions), fearing after losses (cutting losses). Real-life cases: - In 2020, oil futures plummeted to negative values, leading to overnight liquidations for those heavily invested. - In 2022, LUNA cryptocurrency went to zero, leaving investors with their entire investments wiped out.
2. Stop Loss
The core tool of risk management is to set rules to limit losses and protect capital. Depending on different trading logic and market conditions, stop losses can be divided into fixed stop losses (key levels) and trailing stop losses (time stop losses, space stop losses).
The market rewards not your predictive ability, but your money management ability. In financial markets, the key to success lies not in how accurately you can predict market trends, but in how you manage your funds.
Assume there are two traders: A and B. - **Trader A**: has excellent predictive ability with an accuracy rate of 70%. However, he invests 50% of all funds in every trade. Even if he is correct most of the time, a few incorrect predictions can lead to significant losses or even bankruptcy.
- Initial funds: $10,000 - Each trade investment: $5,000 - Two consecutive errors: $10,000 -> $5,000 Example: -> $2,500 - **Trader B**: has only a 50% prediction accuracy but strictly manages funds, investing no more than 2% for each trade and setting a stop loss at 1%. For example: - Initial funds: $10,000 - Each trade investment: $200 - Stop loss: $2 (1% of $200) - Even with multiple consecutive errors, the losses are limited, allowing for waiting for profitable opportunities.
In the long run, trader B is more likely to survive in the market and accumulate wealth, while trader A may be eliminated due to a few significant errors. - **Warren Buffett**: One of his investment principles is 'not to lose money,' reflecting the emphasis on capital protection. - **George Soros**: Once said, 'What matters is not whether you are right or wrong, but how much you made when you were right and how much you lost when you were wrong.'
While predicting market trends is important, it cannot guarantee consistent accuracy; good money management can ensure survival and steady capital growth in uncertain markets.
Therefore, investors should focus more on formulating and executing strict money management strategies, rather than overly pursuing the accuracy of predictions.
Success in trading does not depend on how many times you predict correctly, but on how much you earn when you are right and how much you lose when you are wrong. The core of trading is not prediction, but risk management. Losses are part of trading, but their impact must be controlled through money management. The key to profit is 'cut losses short and let profits run.'
This entirely relies on position management and stop loss strategies. As the old Wall Street saying goes: Newbies ask, 'What should I buy?' while veterans ask, 'How much should I buy?'
Cryptocurrency Contract Survival Guide: Shocking! 90% of people are unaware of these liquidation prevention secrets.
Cryptocurrency Contract Survival Guide: Secrets to Preventing Liquidation with a $5000 Principal.
In the ever-changing realm of cryptocurrency, contract trading attracts many investors with financial dreams due to its high potential returns brought by high leverage. However, high returns always come hand in hand with high risks. For investors planning to enter the cryptocurrency contract market with a capital of $5000, every step must be taken with extreme caution; even a small misstep can lead to total loss. The following points are crucial for avoiding liquidation and achieving stable investments in the cryptocurrency contract market.
Reasonably plan your funds and strictly adhere to safety limits. Fund allocation is the primary barrier in contract trading, directly determining the risk tolerance of trading. When using a principal of $5000, you must strictly control the opening position funds. It is recommended to allocate no more than $500, which is 10% of the principal, for opening positions. This is like in a battle; you cannot deploy all elite troops at the outset, and must reserve strength to handle various emergencies. The remaining $4500 should serve as emergency margin funds for unexpected needs. A one-time approach is akin to going all in; if the market trend goes against your expectations, you will find yourself in dire straits with no way out.
Focus on mainstream coins to avoid potential risks. When choosing coins, maintain a clear mind. Bitcoin, as the leader in digital currency, has high market recognition and liquidity, with relatively more regular price trends. In contrast, altcoins often lack solid value support, making their prices susceptible to whale manipulation and exhibiting extreme volatility. Many investors, in their greed for more, venture into various altcoin contracts, ultimately falling into the 'snow zone.' For instance, some people blindly followed the trend and went long on unknown altcoins, only to see these coins plummet without warning, leading to liquidation and significant losses. Therefore, focusing on Bitcoin for contract trading can help reduce risk to some extent.
Set stop-loss boundaries to protect your investment principal. Setting a stop loss when opening a position is key to survival in cryptocurrency contract trading. Market conditions change rapidly; no one can accurately predict every price fluctuation. A stop loss acts like a 'fuse' for your investment account. When the price hits the preset stop-loss level, it automatically closes the position, thereby limiting further losses. It is important to adjust the stop-loss distance based on real-time market fluctuations. If the stop-loss distance is set too close, it may be triggered frequently due to normal market fluctuations, resulting in unnecessary losses; if set too far, it may not provide timely protection when risks arise. Investors must not harbor the illusion that prices will reverse in their favor without setting a stop loss; this mindset often leads to greater crises.
Formulate a strategy for increasing positions to achieve steady profitability. Increasing positions is an art that requires careful planning. When trading contracts, the remaining principal should ensure that it can support at least four additional positions. During the process of increasing positions, the amount should be gradually increased to lower the average holding price, thereby achieving profits when prices rebound. For example, when the price drops after the first position is opened, follow the plan to increase the position for the first time, and increase the amount compared to the initial opening; thus, as the number of increases grows, the average holding price will gradually decrease. When the market trends reverse and the price rebounds to a certain extent, profits can be realized. However, increasing positions must be based on accurate market trend judgments; blindly increasing positions will only exacerbate losses.
Strengthen money management and control the level of risk. In contract trading, money management is crucial. The risk of a single trade should be strictly controlled at 2%-5%. If the risk is set too high, when market trends are unfavorable, the account funds may suffer significant drawdowns, which not only severely impacts the investor's capital but also easily destabilizes their mindset. Once the mindset collapses, subsequent trading decisions often become blind and impulsive, further increasing losses. Therefore, rationally controlling the risk level of each trade is key to maintaining stability and sustainability in trading.
Hone your trading system and accumulate practical experience. A complete trading system is not built overnight; it requires investors to continually accumulate experience, summarize lessons from long-term trading practice, and optimize and improve it. In the initial trading phase, investors must not recklessly invest large amounts of capital but should first explore with small amounts. By trading with small amounts, you can familiarize yourself with market dynamics, understand responsive strategies in different market conditions, and test whether your trading ideas and methods are viable. In this process, continuously summarize successful experiences and lessons from failures, gradually improving your trading system. Only when the trading system has been tested in multiple real-world scenarios and maintains stable profitability across different market environments should you consider increasing your investment.
Enhance execution power and strictly adhere to trading discipline. Execution power is one of the key factors determining the success or failure of contract trading. During the trading process, investors must strictly follow the stop-loss plan; regardless of how complex the market situation is, one must not abandon the stop loss due to temporary hesitation or luck. Additionally, one must resolutely avoid counter-trend bottom fishing. Once a market trend is established, it often possesses strong inertia; counter-trend operations are like a mantis trying to stop a chariot, with a very low success rate. Furthermore, do not attempt to gamble on low-probability events; the market's uncertainty is significant, and seemingly random low-probability events, when they occur, often bring devastating blows.
Exclusive strategy for small retail investors: proceed cautiously and test the waters. For small retail investors with relatively limited capital who are new to the cryptocurrency space, caution is essential when participating in contract trading. First, it is advisable to use funds that will not significantly impact your life if lost. This helps alleviate psychological burden and avoids making trading decisions influenced by excessive worry about losses. Secondly, choose a low leverage of 2-3 times. While low leverage may yield limited returns, it effectively reduces risks. Combine this with long-term cycles in financial planning, primarily focusing on larger cycles such as 1-hour, 4-hour, or daily charts. Price trends in larger cycles are relatively stable, less affected by short-term volatility, aiding investors in accurately grasping market trends and making rational trading decisions.
Trading in cryptocurrency contracts is like sailing in a stormy sea, with enormous risks. Investors must always remember the principles of light positions and trend-following stop losses, maintaining rationality, and must not blindly follow the herd or engage in impulsive trading. Only in this way can one avoid the risk of liquidation and achieve steady asset appreciation.
Giving roses to others, the fragrance remains on your hands. Thank you for your likes, follows, and shares! Wishing everyone financial freedom by 2025!
Playing in the cryptocurrency market is essentially a battle between retail investors and the whales. If you lack insider information and first-hand data, you will only be cut! If you want to strategize and harvest the whales together, feel free to follow me, Crypto Mu Qing. Welcome to discuss with like-minded people in the cryptocurrency world.
The martial arts secrets have been provided, whether you can make a name for yourself in the world depends on you.
Everyone must save these methods and read them multiple times. If you find them useful, feel free to share them with more people involved in cryptocurrency trading. Follow me to learn more valuable insights in the cryptocurrency world. After getting rained on, I am willing to hold an umbrella for the retail investors! Follow me, and we will walk the path of the cryptocurrency world together!
