17-year-old Chinese cryptocurrency prodigy Liangxi, how did he turn 1000 yuan into 10 million in 7 days?

Legendary genius teenager Liangxi, starting with a capital of 1000 yuan, earned 10 million in a week. How did he do it?

So I took a look at Liangxi's real trading records, and I could understand the reason he turned 1000 yuan into 10 million in a short time.

According to the real trading data, Liangxi's trading frequency is 1,454 times per week, averaging 207.7 trades per day, and about 8.65 trades per hour.

With such a high trading frequency, we can roughly infer that the contract trading targets are short-term contracts or perpetual contracts with a duration of five minutes. This way, trades can be completed in a very short time, avoiding the risk of insufficient margin leading to liquidation.

High-frequency trading inevitably faces low profits per trade, so it can only rely on high leverage to amplify profits. Finally, the profits are compounded through rolling returns.

Now let's assume a contract with 50x leverage, and if we correctly predict a price fluctuation of 1.16%, the return rate would be 58%. Making 20 short-term trades in a week.

1.58 to the power of 20 equals 10,000 times. Such a trading frequency and leverage is undoubtedly very extreme, and for more than 95% of people, it is not replicable.

However, Liangxi has mentioned that he usually sets a fixed time to remind himself of the profits, equivalent to using very little capital for a high-frequency leveraged game each time. This way, the profits are solidified and secured.

Even so, I still suggest everyone to just look at Liangxi's story, and never try to imitate it. For most people, high-frequency trades and high-leverage contracts are equivalent to a death sentence.

However, as far as I know, Liangxi encountered a major market drop last year, with many using 100x leverage, which equals 100,000 yuan starting to short from Bitcoin's second-highest point, reinvesting the profits into leveraged positions.

In the end, it rolled up to 10 million, but this kind of small bets for big returns requires very good operational skills. If one encounters a favorable market, it is indeed possible to earn a lot of money, but one must never go all in.

Also, newbies should not touch contracts; many people have gone bankrupt and even committed suicide because of contracts.