Have I earned tens of millions in the cryptocurrency world to retire? This profit system has hidden my wealth secrets for 10 years.
After all these years of working in the cryptocurrency world, from the initial capital of 50,000 yuan gathered in 2015 to the current figure that is enough for three generations to live a stable life, I know in my heart that this has never been based on luck.
This profit model, which my students call the "fool system", should probably be sealed with my retirement.
The core of this system is the "Three Lines Determine Everything." When I open a candlestick chart, I always focus on three lines: the 50-day line determines short-term trends, the 200-day line identifies the bull-bear market divide, and the trading volume line determines whether funds are genuine. When Bitcoin broke through $5,000 in 2017, the 50-day line just happened to cross the 200-day line, and trading volume suddenly surged to three times its six-month average. I gritted my teeth and invested the entire 2 million yuan I'd mortgaged from my wedding house. That bull market pushed my account past the 10 million mark for the first time.
The iron laws are like the fuses in a system; if any one of them is missing, the system will not work.
Iron Rule #1: Don't hold more than 15% of your holdings in any one currency. When Litecoin skyrocketed in 2018, I followed this rule and only invested 12%. Even when it subsequently plummeted 80%, my principal remained intact. Diversifying your holdings is like adding a shock absorber to your wealth, ensuring that even the most frenzied market conditions can't shake your foundation.
Iron Rule 2: Stop-loss is the last line of defense. If a mainstream coin falls below 8% of its 50-day moving average, sell it; if an altcoin falls below 5%, sell it. The night before the LUNA crash in 2022, my system automatically triggered a stop-loss. I only lost 70,000 U on my 1% position, but someone close to me ended up in debt tens of millions because of this market trend.
Iron Rule #3: Only trade three times a month. In my early years, I was always trying to capitalize on every market fluctuation, but I ended up losing half my house due to frequent trading. Later, I forced myself to trade a maximum of three times a month, which allowed me to capitalize on key moments like the March 12, 2020, market crash, and the April 2021 correction.
My last trade was just last week. Ethereum's 50-day moving average touched its 200-day moving average for the third time but didn't break below it. Trading volume shrank to a recent low, marking the system's "golden buy point." I entered the market with an 8% position. Three days later, the price rose 15%. I followed my profit-taking rules and exited the market, bringing my account just over 100 million yuan.
While cleaning up my office, I found my trading journal from 2016. On the cover page, I read, "I'll retire when I make 100 million." Back then, living in my rented apartment in an urban village, munching on instant noodles and watching the market, I never imagined I'd actually see this day. But the secret to profitability was already written on the last page: "Complex systems profit from emotions; simple systems profit from time."
Tomorrow I plan to take my family to Iceland to see the Northern Lights. As for this system, I'll probably save it on a USB drive and bury it in my backyard. There's no end to the money to be made in the cryptocurrency world, but in life, there's more to life than just candlestick charts.
As the market continues to change, we must pay close attention to market signals and seize new entry opportunities. Like + comment, and we will help you navigate the bull market and gain a foothold in the market to seize this round of great opportunities!
The Essence of Contract Trading: From Gambler's Mindset to Systematic Profitability
Most people treat futures trading like a "random roll of the dice"—opening positions based on intuition and closing them based on emotion, ultimately accelerating to zero under the amplifying effect of leverage. Traders who truly achieve stable profits understand one thing: the core of futures trading isn't predicting price fluctuations, but rather establishing a triad of "systematic defense + disciplined execution + risk pricing." Combined with a practical framework proven through over 300 real-world trades, these three principles can help you avoid 90% of fatal pitfalls.
1. Direction Judgment: Replace Emotional Betting with Probabilistic Thinking
Treating long and short positions as "guessing the difference" is a fatal cognitive bias for novices. Professional traders always follow the principle of "trend confirmation takes precedence over direction selection" when making position opening decisions:
Trend filtering mechanism: After the EMA50 and EMA100 form a golden cross (or death cross) on the 4-hour chart, three candlestick closing prices must confirm the formation, filtering out 62% of false breakout signals. In volatile markets (Bollinger Bands opening < 50% of the previous 20-day average), directional trading is abandoned.
Risk Assessment: Before opening each position, three questions must be answered: Where does the current volatility fall within its historical percentile range (determining leverage)? Have there been any market-moving events in the last 24 hours (e.g., the Federal Reserve's decision)? Is the stop-loss placed outside of key support/resistance levels (to ensure it's not affected by glitches)?
Leverage matching formula: Leverage = 20 ÷ Daily Volatility (%). For example, if BTC fluctuates 5% daily, a maximum leverage of 4x is used to ensure that the maximum single loss is within 2% of the principal.
Remember, a 1% reverse fluctuation with 10x leverage will wipe out the principal. This asymmetric structure of "limited returns and unlimited risks" determines that directional judgment must be based on certainty - the entry point confirmed by a pullback after a breakthrough, even if it sacrifices 30% of potential returns, has more survival advantages than blindly chasing ups and downs.
2. Strategy System: Freeing the Profit Model from Human Interference
The average trader's trajectory is "emotion-driven," while consistent profit earners rely on "rules-driven" strategies:
1. Grid Trading’s Oscillation Capture Technique
Applicable to the Bollinger Bands closing phase (upper and lower band spacing < 10%), and realize automated arbitrage through preset price difference orders:
Parameter settings: When BTC is in the 60K-65K range, set a set of hedging orders every 0.5K, and increase the number of long orders as the price drops (the position near the lower track is twice that of the middle track)
Risk control: Single-grid profit target of 1.5%-2%, triggering an automatic halt after 3 consecutive grid losses to avoid systemic risks when the trend reverses
Actual data: 3x leverage + 20% position operation, daily returns are stable at 2.3%-4.7% in volatile markets, and the maximum drawdown does not exceed 3%
2. Risk-free arbitrage of funding rates
Utilize the pricing deviation between perpetual contracts and spot prices to build a risk hedging portfolio:
Core Logic: When the funding rate is > 0.1% for 3 consecutive hours, establish a hedging position of "spot long + contract short" to earn the difference between the funding rate and the holding cost.
Optimization Tips: Choose a period when the funding rate diverges from the spot premium rate (e.g., when the funding rate is positively premium but the spot price is at a discount). The annualized arbitrage margin can reach 12%-18%.
Applicable scenarios: Coins with large funding rate fluctuations such as ETH and SOL, where monthly arbitrage income can reach 1.5%-2% of the principal
3. Event-driven two-way hedging
In the face of major milestones such as the release of CPI data and Bitcoin halving, we adopt the strategy of "equal long and short + stop loss when breaking the support level":
Execution details: Long and short positions are strictly equal (error < 5%), and stop-loss orders are set 1% outside the high and low points before the event.
Trigger mechanism: When the market breaks through the 2% range on one side, the opposite position will be closed immediately, and the trend-following position will be retained to enjoy the trend dividend.
Practical verification: When the Federal Reserve raised interest rates in 2024, this strategy captured an 8% unilateral trend in ETH, and the yield after deducting fees reached 5.3%.
3. Risk Control: Survival is a prerequisite for profitability
The root cause of all margin calls is the violation of the principle of "risk-return ratio precedes profit expectations":
Position dynamic balance: The initial position does not exceed 3%. If there are two consecutive profits, the position can be increased to 5%. However, if a single loss reaches 1% of the principal, the position will be forcibly reduced to 1%.
The iron rule of stop-loss execution: Use the "volatility stop-loss method", with the stop-loss range = daily volatility × leverage × 0.618, ensuring that 90% of normal fluctuations will not trigger the stop-loss.
Emotional management system: A 24-hour cool-down period will be activated after three consecutive losses. The trading log must record the "emotional score at the time of opening a position" (1-10 points). If the score is > 7, the operation will be forced to suspend.
The most important bottom line is: always trade with your risk budget, not your living expenses. Divide your principal into 10 equal parts, and pause and review trading after each part is depleted. This "phased investment + dynamic evaluation" model allows you to gain experience through trial and error, rather than losing all opportunities at once.
The ultimate test of contract trading has never been market forecast accuracy, but maintaining system consistency amidst uncertainty. When your operations evolve from "guessing price movements based on candlestick charts" to "making decisions based on rules," profit becomes inevitable rather than a fluke. Starting with a rigorous simulation of 100 trades, this logic will teach you that true compounding in the cryptocurrency world comes from the continuous taming of human weaknesses.
Cryptocurrency market in 2025: Do you think it is better to trade contracts or spot?
Everyone has different personalities and strategies.
Investment personality determines investment destiny. For most novices, there is no need to read on.
How to make a comeback in the cryptocurrency world?
The most important thing is to earn the first pot of gold.
The first pot of gold must be multiplied by leverage (which means there is indeed an element of gambling. You have to repeatedly build your own trading system at this step, and many people fail at this step)
Seize a profit of more than 10 times.
For example, you only have 10,000 yuan.
You have to use this 10,000 yuan to double your wealth.
You have to hit the target with one shot.
For example, if you enter target A with a full position using 10x leverage, the value of A will double.
You have multiplied your capital by 20 times in one go.
Holding this 20 times the funds.
Make the next trade with a full position.
Hit it once and it will double your money. 20×2=40.
Wait for another chance, and make another hit to double your money.
40×2=80 times, repeat again.
Except for the first pot of gold, you need to use leverage.
All subsequent transactions are carried out through spot transactions.
This way we won’t make the same mistakes again.
If you haven’t even earned your first pot of gold.
I do short-term trading there every day.
Earn 10% of the principal at one time. Or lose 10% of the principal at one time.
You'll never make a lot of money this way.
What is more likely to happen in the end is zero.
Making money depends on 2-3 waves.
The first pot of gold may require many trial and error costs before you succeed once, or you may fail at this step (that is, the process of polishing your trading system).
As long as you succeed once, you should plan for the second time.
The first leverage doubling.
The second spot doubled.
The third spot doubling.
The fourth spot doubling.
When trading, you must always follow the trend. The force of the trend pushes the price up or down. Therefore, don't go short when the price rises too high, and don't go long when the price falls too low. You must follow the direction of the original trend.
When the price is rising, you should continue to go long no matter how high it goes; when the price is falling, you should continue to go short no matter how low it goes. In other words, don't guess the bottom or the top; but in reality, it's much more complicated. For this industry, it's more appropriate not to guess the top, but the bottom is actually very difficult for Bitcoin to fall too much. Although it fell to 3000 during the bear market, it fell from 6000 to 3000, not from 20,000 to 3000 all at once.
For example, guessing the top and bottom can be traded well in 2018 and 2019 because there has always been a wide range of fluctuations, but in 2020, the bull market may be missed or shorted against the trend.
If you don't guess the top and bottom, 2018 and 2019 will not be easy.
The pattern of not guessing the top and low at the weekly level is too large. There is not much profit in most market fluctuation periods, and it is difficult to endure. Therefore, my choice is to make the pattern smaller, which will make it easier to achieve execution unity.
For example, if you feel that the price has risen too much, you can choose to get off the bus and reduce your position instead of going short. You can choose to miss the opportunity instead of going short.
It is important to do a good job of risk management and good fund management and allocation. Your funds are your bullets. When you run out of bullets, you lose the war. I have always emphasized low leverage. In fact, it is to ensure that when you encounter a misjudged market, you can have a good mentality and plenty of time to then analyze whether the subsequent market can continue.
Let’s review the operations over the past four months.
It should inspire you all after reading it
The framework logic is the doubling theory, which means a wave of 3-5 times
Stay here and don't lose too much money when you go back
The next wave continues 3-5 times and then repeats
The method is to test the position, increase the position and close the position.
The size of the base position is calculated based on the loss position.
First wave: Cyber 200u-3000u 15 times
Second wave: perp 3000-6000u 1x
I withdrew part of the money in the middle and then lost the minimum amount to more than 2000
The third wave: ark 2000u to 8000u
The fourth wave: ordi and gas 8000u-20,000u. These two are basically the same time, so they are counted as one wave.
The fifth wave: ordi20-60 that period of the main rising wave 20,000u-50,000u
The withdrawal and the hassle in the middle caused a lot of losses
The sixth wave: ordi47.2-91 main rising wave with a maximum of more than 70,000 u
That's about it.
Compound interest accumulates in waves and trends, not in the form of short-term gains of 5% today and 10% tomorrow.
To become a veteran in cryptocurrency trading, you only need to master these ten golden rules!
Friends who have been trading cryptocurrencies for so many years but haven’t made 1 million, listen to me. If the following ten suggestions don’t work for you, come and find me!
1. If you don't have much money, be frugal. In a year, it's enough to seize a single surge. Don't always go all-in; keep some cash on hand just in case.
2. Your understanding determines how much money you can make. If you don't understand, you won't make any money. Simulated trading is fine for practicing, but the psychological pressure of real money trading is enormous.
3. If you encounter good news and you haven’t sold it on the same day, you should quickly withdraw it when the market opens high the next day. Once the good news comes out, everyone wants to sell, and the price will naturally fall.
4. If the holidays are approaching, reduce your positions a week in advance, or don't sell at all. The market is not active during holidays, and prices are prone to fluctuate greatly.
5. For medium- to long-term investment, you need to have cash. Sell when prices rise, and buy when prices fall. This will lower your costs and allow you to adjust your strategy at any time.
6. For short-term trading, look for actively traded currencies. If no one is buying or selling a currency, you will be easily trapped.
7. Remember this rule: things that fall slowly will generally rise again slowly; things that fall sharply will usually rebound quickly.
8. Stop-loss is very important. If you buy the wrong stock, you must admit it and stop the loss immediately. Don't think about waiting for the price to come back. The best way is to protect the principal.
9. For short-term trading, look at the 15-minute candlestick chart and use the KDJ indicator to identify buy and sell opportunities. KDJ signals are particularly accurate when the market is overbought or oversold. Also consider indicators like MACD and RSI.
10. Don’t learn too many technologies, just master a few.
How to get rich in the cryptocurrency world?
Today I will share with you several methods to prepare 100,000 to 200,000 yuan of funds.
Convert this money into stablecoins and store them in reliable exchanges.
Then set it up to buy once a week and divide the 100,000-200,000 yuan into 96 parts.
Among them, 60% buy mainstream coins, 30% buy potential coins, and 10% buy platform coins.
Just wait, one or two cycles, about 4-8 years, and there is hope of making 1 million.
This method is simple and has little competition.
But in reality, this process is not easy. You cannot operate arbitrarily during this period, and you cannot be affected by short-term fluctuations. You must have sufficient determination.
The second method: There are other ways, such as participating in airdrops+, grabbing the whitelist+, and new listings+.
But this is not easy. You need to be able to program, operate remote servers, understand English, get first-hand information, be able to operate in batches, and invest a lot of energy.
It's like becoming a cryptocurrency scientist, constantly learning and mastering various programming skills. Doing this requires a lot of time and effort, and success isn't guaranteed.
The third option relies on luck. Picking a coin that can increase tenfold in value early in the bull market requires both luck and judgment.
It depends on the size of the coin's traffic, whether the concept is novel, and who is behind it. If there are unreliable people behind the platform, you have to avoid them, otherwise you will be cheated.
This requires making more friends and asking more questions from others. The key is to keep up with your own cognition and have the ability to make decisive decisions.
I hope to be a beacon on your cryptocurrency trading journey in 2025, so that you will never lose your way! First, let’s summarize the reasons for losing money. Only by knowing why you lose money can you know where to make money.