#加密市场回调 $BTC The original Martingale is actually a doubling strategy. The simplest reasoning is that as long as you have enough funds, it is impossible to incur losses in betting on high or low; the winning rate is definitely 100%! This means that once you learn Martingale, you no longer need to worry about any losses, just the risk of a total loss, and indeed, in most market conditions, you are guaranteed to make a profit. For example, when Bitcoin is at 100,000, you start buying long. Every time it drops by 5,000 or 10,000 points, you double your position until it stops falling and starts to rise, reaching your take profit. This is the simplest form of Martingale. However, if a significant market movement occurs, such as Bitcoin dropping from 100,000 to 40,000 or 20,000, you need a substantial amount of funds to withstand it, which is quite evident. In my view, Martingale is a strategy with minimal profits and maximum losses. Why do I say this? It's human nature! For example, if you have 10,000 U and you initially buy 1,000 U long, but encounter a significant downturn while using Martingale, it keeps falling, and you keep adding. Eventually, all your capital of 10,000 U is in play, and at this point, you're not thinking about making money but about recovering your losses, as something you were about to lose suddenly comes back. Most people are afraid of losing again, but what you don’t realize is that it originally belonged to you. Thus, at this point, most people will close out most of their positions when they are close to breaking even! In other words, with Martingale, most of the time, you are not trading to make money but rather using your own money filled with worry and fear to earn back what is yours! And most of the time, you can only make small gains because if you frequently use Martingale, you will definitely encounter the aforementioned problems. Of course, the most terrifying aspect is when your funds can't support the position anymore, you can only watch it go to zero. This is why I personally do not recommend the Martingale strategy: first, most only earn small profits. Using large funds to win small profits is obviously an unwise trading strategy. Of course, this is still a relatively good situation; many times, using large funds to chase small profits can result in total loss! This doesn't mean that the Martingale strategy can't be used; in fact, it can be quite effective, and I personally use it often—it's just a matter of how to use it.
My personal method is using the Martingale strategy combined with box theory and volume to manage stop losses. Strictly speaking, a true Martingale does not use stop losses; a total loss is a stop loss. When I use Martingale, it is usually at a key price point to add to positions or average out. This can be considered a small Martingale. When the market behaves differently, stop losses should be applied, for example, Ethereum's current market can be seen as a range between 2,300 and 2,800. As long as it stays within this range, we can view it as a high point for shorting and a low point for going long, combined with volume. I mostly use Martingale for placing orders. For instance, when the price reaches around 2,700 and you’re unsure whether it will break the previous high of 2,788 or not, you can place a short order around 2,765. If you think the price will break 2,788, possibly a false breakout reaching the important resistance of 2,850, you can place another order. Of course, you need to control the total position size of both orders. Finally, if you believe the price will start rising when it breaks 2,900, you might set a stop loss above 2,900, say at 2,920. At this point, a Martingale strategy combined with box theory and stop loss strategy comes into play. There are two ways for us to exit: one is to stop loss when the market exceeds our expectations, and the other is to take profit when we reach our expectations! This is generally how a key price point for contracts is used in a small Martingale method! Also, when it comes to averaging down, I won’t go into detail as it’s quite easy to understand!
The spot Martingale strategy is, in my personal opinion, its main battlefield. My personal approach is the Martingale strategy combined with large-cap mainstream coins (this is very important). The simple logic is to buy low and sell high; here, the most important thing is to grasp the initial position and the major trend, as well as the part of adding to positions, leaving everything else to time! I can confidently say that this strategy has not incurred losses so far, just varying levels of profit, making it suitable for large funds seeking stability and compound interest! The essence of spot trading is a foolproof trading method; there's not much to say. The biggest issue is the time cycle; work with time, friends! If you’ve read this far, please give a free follow and a free like; feel free to leave comments if you have different opinions!
The above views are my personal opinions; any strategy needs to be combined with the current market conditions! Therefore, all technical aspects are rigid, while the market is dynamic! Flexibility in usage is fundamental!
