After eight years of trading cryptocurrencies, starting from 30,000 to now over 20 million, I've relied on a 50% position for steady gains, with monthly returns soaring to 70%. I passed this unique secret to my apprentice, who doubled his investment in three months. Today, I'm in a good mood and will share these precious nuggets with you, so remember to save them well!
Trading cryptocurrencies always leads to losses; today I'll teach you step-by-step how to build your own 'Anti-Burst Trading System'!
1. Trading Strategy Positioning
Trend Following (for the impatient): Keep a close eye on mainstream coins like BTC/ETH, using moving averages/MACD to judge bull markets. For instance, heavily invest when ETH breaks through $3000 with doubled volume. Swing Trading (for those with time): Focus on altcoins, take profit at 10%-20% gain, cut losses decisively at 5% drop (reference SOL chain project operation). Arbitrage Hedging (for the tech-savvy): Cross-exchange price difference arbitrage (e.g., Coinbase vs. Binance premium difference), contract-spot price difference capture.
2. Scientific Entry Rules
Technical Signals: RSI<30 + surge in trading volume (buy signal); MACD death cross + large on-chain transfers to exchanges (exit signal). News Response: Major positive news like Federal Reserve policies or national legislation requires a decision within 5 minutes (e.g., El Salvador's second BTC purchase causing a surge). On-Chain Tracking: Any abnormal movement of whale wallets (e.g., V God transferring out 100,000 ETH) should be followed immediately.
3. Precise Exit Mechanism
Hard Stop-Loss: Liquidate immediately if capital loss exceeds 5% (reminder from the LUNA zero case). Dynamic Take Profit: Move stop-loss line to cost price after 50% floating profit (e.g., when BTC rises from 40,000 to 60,000, set stop-loss at 55,000). Time Stop-Loss: Withdraw if held for more than 3 days without fluctuation (applicable for altcoins).
4. Position Management Iron Rules
Total Position Control: Trade 50% of capital, 50% hold USDT for interest (annualized 8%). Single Token Limitation: Holding of a single token should not exceed 20% of total position (lessons from FTX collapse). Leverage Red Line: 3-5x leverage + strict stop-loss, prohibit risks above 10x.
5. Risk Firewall
Black Swan Contingency Plan: Pre-set extreme market response plans (e.g., close 50% when Musk is bearish). Emotional Control: Mandatory break after three consecutive losses, uninstall trading apps. Environmental Isolation: Turn off price alerts during sharp declines to avoid community panic contagion.
[System Building Key Points]
Strategy Adaptation: Choose strategies based on market phases (e.g., avoid trend strategies during the 2024 interest rate hike cycle). Signal Standardization: Establish repeatable entry/exit conditions (e.g., go long when Coinbase premium rate > 2%). Mathematical Survival Rule: Control single trade risk within 2% (survive even after 50 consecutive losses), prohibit 50% heavy positions.
Conclusion: Trading system = a precise combination of strategy + signals + risk control; continuous optimization is more important than predicting market trends. Remember: The core of an anti-burst position is not to predict storms, but to build a safe harbor.