In the early years of trading cryptocurrencies, like many others, I stayed up late every day, watching the market, chasing price surges and cutting losses, losing sleep over my losses. Later, I gritted my teeth and stuck to a simple method, surprisingly managing to survive and slowly starting to stabilize my profits.
With this ironclad rule, I can now stabilize my annual return rate at over 80%, and I no longer have to rely on luck to survive.
1. Risk Control System
Dynamic Position Management Rules
Positive Pyramid Position Increase: Increase profitable positions in a 1:0.6:0.3 ratio
Negative Razor Position Reduction: Halve losing positions each time
Leverage usage rate not exceeding 20% of account net value
Stop-Loss Iron Law
Single transaction loss ≤ 2% of total funds
Single day loss ≥ 5% mandatory stop trading
Weekly loss ≥ 10% enter review cooling period
2. Trading Discipline Framework
3. Signal Filtering Mechanism
✓ Triple Verification System: Resonance of fundamentals + technicals + sentiment
✓ Key support/resistance level breakthrough confirmation
✓ Volatility threshold trigger (ATR ≥ 2 times the average)
Time Period Control Principle
Clear positions 1 hour before major data releases
Stop trading for the day after 3 consecutive losses
Halve positions during inactive periods (such as US market closure)
3. Psychological Management Model
4. Profit Status Response Strategy
Withdraw 10% to lock in profits when profits reach 20%
Reduce leverage by 10% after each new net asset high
Set dynamic stop profit: automatic liquidation at 30% drawdown
Loss Recovery Process
① Trigger circuit breaker mechanism: pause trading for 24 hours
② Conduct trauma review: record emotional fluctuation nodes
③ Develop recovery plan: validate with simulated trading for 2 weeks
4. Strategy Evolution System
5. Diversified Trading Matrix
▶ Configure 3 types of uncorrelated strategies (trend/arbitrage/hedging)
▶ Dynamic adjustment of capital allocation ratio 5:3:2
▶ Quarterly strategy effectiveness assessment
Response to extreme market conditions
⚠ VIX index > 30 activate crisis response plan
⚠ Black Swan events trigger reverse hedging
⚠ When liquidity is exhausted, forcibly reduce positions to 10%
5. Continuous Growth Mechanism
6. Trading Log Standards
Record the decision basis and emotional state for each transaction
Mark strategy execution completeness (1-5 score system)
Weekly statistics on win rate/profit-loss ratio/maximum drawdown
Cognitive Upgrade Cycle
▷ Study 2 central bank policy reports each month
▷ Participate in professional trading psychology training quarterly
▷ Annual strategy backtesting (10 years of data backtesting)
Core formula for survival rules:
Long-term survival rate = (Risk Control × Discipline Execution) / (Emotional Fluctuation + Leverage Abuse)
