This year, 2025, marks my 8th year of full-time cryptocurrency trading. Last year, I spent 11 months working on contracts, growing from 2000U to over 2 million U, achieving a 1000-fold profit.
In the cryptocurrency space, if you truly want to achieve financial freedom and realize compounding, methods, techniques, and forming your own profit system are crucial!
Once mastered, the cryptocurrency market will be like your 'ATM', making money as easy as breathing!
After trading cryptocurrencies for more than 10 years, I summarize my wealth journey as follows:
The first million took the longest and was the most painful, with the trading system constantly being reshaped and refined, taking a year and a half.
The second million took three months
The third million only took 40 days
The fourth million only took 5 days
75% of the funds were earned in half a year
My personal account has gone from 300,000 to 1 million over nearly 10 years, but once it hit 1 million, it was like a switch flipped, shooting up to 40 million. Today, I share a few key insights, these experiences are worth 60 million, and I hope they can help you.
Phase One: Time-space folding infrastructure (0→5000U)
▎Time vault (50% of capital)
Pulse harvesting technique:
Every day from 04:00-06:00 Beijing time (when European and American traders close positions + Asian traders are still asleep), scan for 3 consecutive low-volume doji stars on the 15-minute candlestick chart of BTC/ETH, and immediately place a reverse order to open a position.
Operation: If a series of doji patterns appears in the early morning, close positions before 08:00 in the morning (run if profit is 3%, force close if loss is 2%).
▎Hedging safety net (30% of capital)
Scissor arbitrage:
When the funding rate of BTC perpetual contracts > 0.15%, simultaneously go long BTC/USDT and short OKX BTC/USDC to profit from cross-platform funding rate differences.
Locking rules: Rates falling to 0.05% automatically unlock, with a single arbitrage cycle ≤ 3 days.
▎Leverage booster (20% of capital)
3. Whale targeting system:
Monitor single orders > 1000 BTC through CoinGlass, ambushing reverse 10x leverage orders at ±1% of their liquidation price.
Case: A whale places a 1000 BTC short order at $48,000 and sets a reverse long order at $48,480.
Second Phase: Folding enhancement mode (5000U→20000U)
▎Four-dimensional grid advancement
Emotional resonance grid:
Establish asymmetric grids at the BTC daily level (3% interval for ups, 1.5% interval for downs)
Sell 2% for every up move, buy 4% for every down move (against human nature to seize panic premiums)
Event folding technique:
48 hours before the monthly Federal Reserve meeting, open with 20% of the position simultaneously:
BTC volatility index (DVOL)
Short ETH/BTC exchange rate contract
Hedging logic: When interest rate decisions trigger BTC volatility, DVOL increases to cover exchange rate volatility risks.
⚡ Ultimate stage: Time-space collapse sprint (20,000U+)
▎Black hole engine (brutal version)
Liquidity siphon:
When the exchange BTC/USDT bid-ask spread <0.05%, initiate high-frequency hedging:
① Buy 10,000 USDT spot at market price → ② Instantly open a 10x short contract → ③ Profit from the spot premium return.
Execution requirements: API interface delay <50ms, daily trigger limit 3 times
Doomsday wheel strategy:
Two hours before the quarterly contract expiry, monitor the top 3 out-of-the-money options with open interest:
If the open interest of call options suddenly increases by 200%, open 5 times the short position (harvesting the hedging positions of option market makers)
Folding rule (life-saving clause)
Dimensional folding lock: If a single loss reaches 2% of total capital, immediately initiate a 24-hour trading freeze.
Time collapse device: Wednesdays/Fridays from 20:00 to 22:00 (peak period for major players dumping) leverage is prohibited.
Space tearing protection: Profits exceeding 50% must be transferred to cold wallets, reinvestment is prohibited.
Observer effect: Mandatory review at 19:00 daily, using Python to backtest the deviation of daily strategies.
This strategy innovatively combines cross-market data monitoring (CoinGlass liquidation orders), asymmetric risk grids (selling less on uptrends/buying more on downtrends), and expiration day strategies (targeting open interest in options) to achieve all-weather profit capture through dimensional folding.
I'll share another practical strategy I've developed over the years, with an average win rate of 80%, which is quite a rare achievement in the cryptocurrency trading world.
Without further ado, let's get to the essentials!
In 2 years, I turned 3,000 yuan into over 10 million, relying on this set of (5-0 trading patterns).
If you read this article carefully, you will benefit for a lifetime!
The 5-0 trading pattern is a harmonic trading model that technical analysts use to identify potential reversal points in the market. This pattern is characterized by its unique five-wave structure, providing a systematic approach to predicting and capturing market direction changes.
By combining Fibonacci retracement and extension levels, the 5-0 trading pattern can accurately identify potential reversal areas. This model is particularly a high-probability trading tool for traders looking to enter during reversals.
Analysis of the 5-0 pattern structure
The 5-0 trading pattern essentially consists of five consecutive price fluctuations (or 'legs') marked as XA, AB, BC, CD, and DE. This pattern usually appears after a long-term trend and indicates that the original trend may reverse or pause.
Every wave follows specific Fibonacci retracement and extension ratios, making the 5-0 pattern a structurally rigorous and logically clear tool that can reveal reversal areas that ordinary technical indicators may fail to detect.
Here are detailed descriptions of each price structure:
● 0X: Initial trend.
● XA: The retracement of the 0X wave is usually near the 38.2% to 50% Fibonacci retracement level.
● AB: The extension wave that surpasses the XA wave, usually reaching the 113% to 161.8% Fibonacci retracement level of the XA wave.
● BC: The extension wave that surpasses the AB wave, usually reaching the 161.8% to 224% Fibonacci retracement level of the AB wave.
● CD: The final wave completing the pattern, usually consistent with the 50% Fibonacci retracement of the BC wave.
How to draw the 5-0 trading pattern
Drawing the 5-0 trading pattern requires a systematic approach, whether done manually or with automated tools.
To manually draw the 5-0 trading pattern, traders must follow these steps:
1. Identify the initial trend (0X): First, observe a strong trend in the market, which will serve as the foundation for the entire pattern, forming the XA wave.
2. Measure the retracement of the XA wave: Use the Fibonacci retracement tool to measure the retracement extent of the XA wave, ensuring it is within the 38.2% to 50% range of the XA wave. This step is used to confirm the first adjustment phase of the pattern.
3. Find the extension of the AB wave: Identify the AB wave, which must surpass the high/low of the XA wave. Confirm that the amplitude of the AB wave exceeds 100% of the XA wave using Fibonacci extension tools; this is one of the key characteristics of the pattern.
4. Draw the extension of the BC wave: Measure the BC wave (the extended part of the AB wave), which usually has an amplitude of 161.8% to 224% retracement of the AB wave.
5. Verify the CD wave: Finally confirm whether the CD wave has retraced approximately 50% of the BC wave. This step will confirm the completion of the 5-0 pattern and mark potential reversal points.
For traders who prefer automated solutions, charting platforms like TradingView, MetaTrader, and ThinkorSwim offer harmonic pattern recognition indicators. These tools can automatically detect and mark the 5-0 trading pattern on price charts, significantly simplifying the analysis process.
When using it, simply enable the harmonic pattern tool, check the 5-0 trading pattern option in the settings, and the system will automatically scan for potential pattern structures.
Automated tools are particularly beneficial for traders operating multiple assets or time frames, saving time and improving efficiency.
How to trade using the 5-0 pattern
The key to trading the 5-0 pattern is to identify the completion of the DE segment and trade based on the expected reversal. Here are several steps to effectively trade this pattern:
1. Identify the pattern
The first step in trading the 5-0 pattern is to identify it on the price chart. Traders can manually draw the pattern based on the aforementioned steps or use automated harmonic pattern recognition indicators provided by trading platforms (if available) to assist in identification.
Remember, confirming the validity of the pattern is crucial; ensure that all segments (XA, AB, BC, CD, and DE) comply with specific Fibonacci ratios. The accuracy of recognition will significantly impact the reliability of the trades.
2. Wait for the pattern to complete
Patience is key when trading the 5-0 pattern. Traders must wait for the DE segment to reach the expected Fibonacci retracement level before taking action.
The DE segment typically completes at the 50% retracement of the BC segment. If one enters the market too early before the pattern is fully formed, they may suffer unnecessary losses if the price does not reverse near the expected reversal point.
Monitor price behavior near the expected completion area of the DE segment, which helps confirm the validity of the pattern and reduces the likelihood of false signals.
3. Determine the entry point
Once the DE segment is completed, it marks a potential reversal area. Traders should enter as close to that completion point as possible.
For a bullish 5-0 pattern, where the price is expected to reverse upwards, traders can establish long positions.
Conversely, for a bearish 5-0 pattern, where the price is expected to reverse downwards, it is recommended to establish short positions.
Combining other confirmation signals (such as candlestick patterns: hammer, engulfing patterns, etc., or momentum indicators: relative strength index RSI, MACD, etc.) can further enhance the reliability of trades.
4. Set stop-loss and target levels
When trading the 5-0 pattern, risk management is a crucial aspect. To prevent unexpected price fluctuations or pattern failures, traders should set stop-losses outside the completion point of the DE segment.
For bullish patterns, the stop-loss should be set slightly below the DE point; for bearish patterns, it should be set slightly above the DE point. This stop-loss setting allows for natural price development while minimizing potential losses as much as possible.
Setting profit target areas is also an important step in trading the 5-0 pattern. Appropriate target prices can be determined through Fibonacci extension levels and previous important support/resistance levels.
Common targets include the 38.2%, 50%, or 61.8% Fibonacci extension of the DE segment. Traders can also choose to take profits in batches, gradually reducing their positions at multiple target levels to lock in profits while allowing part of their position to continue holding for further gains as the price develops in the expected direction.
Case Study
The structure of the 5-0 trading pattern is similar to that of an inverse head and shoulders pattern, where the second 'shoulder' is elongated in time. In the EUR/USD daily chart below, we can plot a 5-0 pattern.
We drag the Fibonacci retracement tool from point X to point A. In this case, point B nearly touches the 1.618 level, complying with the rules of the pattern—it must fall between 1.13 and 1.618.
Next, reposition the Fibonacci tool from point A to point B. Point C should align with the 1.618 projection of the AB segment. In this case, point C successfully meets this condition, so we can proceed to the next step.
Now, move the Fibonacci tool from point B to point C to assess the trend of the DE segment. Focus on whether the price retraces to the 0.50 retracement level and starts to move upwards. This indicates that the DE segment may be forming and signals that the pattern is nearing completion.
To further confirm, you can draw an ascending channel. The first line connects point A and point C; the second line connects point B. If the price remains within this channel, it will further enhance the validity of the pattern and serve as an additional buy signal.
After confirming the pattern, develop a trading plan... In this case, the best buying area is around 1.2615. The stop-loss should be set below the correction range, around 1.2470, which also corresponds to the 0.618 Fibonacci retracement level. To further confirm the entry signal, a downward trend line can be drawn, and trading should be executed only after the price breaks through this trend line.
Finally, set profit targets to effectively manage trades. The first target can be set at 1.3110, aligned with the horizontal level of the XA segment; the second target at 1.3195, which is the prior high of the pattern.
In the cryptocurrency space, trading is not gambling; it's a cognitive game and a process of monetizing knowledge.
If your principal is limited (for example, within 100,000), but you desire to achieve several times your asset growth in a bull market,
1 The strategy for small capital is 'wait' rather than 'go all in': with a capital of 100,000, as long as you seize 2-3 mainstream coins with over 30% gains, the target can be achieved. In a bull market, the biggest taboo is not missing opportunities, but getting stuck after going all in. Truly skilled investors dare to remain flat and wait for opportunities; they are the keen hunters in the market.
2 First ensure 'no loss', then pursue 'profit': In the cryptocurrency space, the phrase 'I think this time is different' can be costly. One can only earn money within their cognitive range, so first accumulate experience and temper your mentality with a simulation account, and only enter real trading when you are sufficiently calm. It's important to understand that once you suffer significant losses in real trading, it may be difficult to recover.
3 Positive news hides 'traps': On the day major positive news is announced, if the coin price has already risen significantly, then the next day's high opening is often an excellent selling point. The market makers are adept at using good news to cut the retail traders, so stay vigilant.
4 Key operation points before the holiday: Based on data from the past 5 years, the probability of a price drop in the week before the holiday exceeds 70%. Therefore, either choose to reduce positions or simply go flat for the holiday, and do not go against the high-probability trend.
5 The key to medium to long-term investment is 'keeping bullets': Never invest all your funds at once. Sell in batches when prices rise; buy in batches when prices fall. A stable cash flow is the guarantee for long-term survival in the cryptocurrency space.
6 The core of short-term investment lies in 'momentum': when trading volume suddenly increases sharply and the chart breaks through the resistance level, follow up decisively; if there is a sideways contraction, it is better to miss this opportunity than to act rashly.
7 Opportunities hidden in sharp declines: A slow decline indicates that the market has no buyers and may continue to drop; however, a sharp decline accompanied by increased volume is often the last round of selling, and a rebound may be just around the corner.
8 90% of people fail here: 'Just wait a bit and I'll break even,' is the most misleading illusion in the cryptocurrency space. Stop-losses must be decisive and swift, while profit-seeking can be gradual. Once the principal has lost 50%, a 100% profit is needed to break even. Are you really confident you can achieve that?
9 Short-term investment tools: 15-minute KDJ indicator: Buy when a golden cross occurs, sell when a dead cross occurs, while filtering out false signals with trading volume. This method is especially suitable for investors who do not have time to monitor the market constantly.
Playing around in the cryptocurrency space is essentially a battle between retail investors and market makers. If you don't have cutting-edge news or firsthand information, you'll just get cut! If you want to lay out strategies together and harvest from the market makers, feel free to reach out to me! Anyone in the cryptocurrency space with shared interests is welcome to discuss.
Creating is not easy, thank you for reading. Friends who want to discuss techniques and layout good coins together can give a like + follow.
