After eight years of struggling in the crypto world, I have gradually built my assets from tens of thousands to over ten million. It’s not luck, but a stable strategy of half-position trading, earning around 60% monthly. Today I share the five trading principles I have summarized to help you avoid detours.

I. Risk Control Pyramid (Life First)

1. Flexible Positioning: Divide funds into 5 parts, using only 20% of it each time (for example, in a 1 million account, invest a maximum of 200,000 each time).
2. Double-layer Stop Loss: ① Maximum loss of 2% of the principal per transaction (for example, losing 20,000 on a 1 million investment); ② Immediately stop loss if the price drops by 10% (for example, if bought at 100, sell at 90).
3. Three-layer Protection: ① Protect capital at a 10% profit (no loss); ② Sell half at a 20% profit; ③ Sell all if the trend turns bad (for example, if the 30-day moving average goes down).

II. MACD Volume Model (Capture Big Rises)

1. Find Reliable Signals: In the daily chart, the two MACD lines cross above the zero axis (golden cross), excluding false signals.
2. Volume-Price Coordination: The trading volume during a breakout is over 2 times the average of the previous five days and consistently above the 20-day moving average (confirmed by the TD sequence).
3. Three Cycle Resonance: The weekly 30-day moving average is upward + the daily 5-day and 10-day moving averages have a golden cross + the 4-hour Bollinger Bands are tightening and breaking out.

III. Trend Grading Defense (Prevent Being Stuck)

1. No chasing highs: If there is a rise of over 35% in 24 hours, RSI exceeds 85, and trading volume suddenly increases 5 times (the main force may be unloading, don’t be a bag holder).
2. Trend Warning:

  • Danger Zone: The 7-day and 30-day moving averages have a death cross + increased volatility (mandatory reduction of 50% position);

  • Observation Zone: The 30-day moving average is flat + volatility is less than 20% (keep 10% of the position);

  • Offensive Zone: The 7-day, 30-day, and 84-day moving averages are in a bullish arrangement (increase position boldly).

IV. Institutional Level Volume Decoding (Techniques to Follow the Big Players)

1. Bottom Signal: Continuous 5 days of increased trading volume + OBV hitting a new high + funding rate negative (the main player may be quietly accumulating).
2. Top Signal: Volume increases but price does not rise (3 days of volume exceeding the 20-day moving average but price fluctuations are small) + funding rate exceeds 0.15% + sudden increase in exchange inflow (the main player wants to unload).

V. Three-dimensional Review (45 minutes daily)

1. Strategic Level: Look at the weekly TD sequence, monthly MACD pattern, and quarterly Gann angle lines (the big direction).
2. Tactical Level: Check the moving average arrangement of the held coins, volatility changes, and open interest in derivatives (details).
3. Execution Level: Statistically analyze stop-loss accuracy, record trend duration, and adjust risk-reward ratio (small optimizations).

Practical Performance Report

  • 2021 LUNA Trend: 427% profit in 23 days (holding based on the 30-day moving average);

  • 2023 ORDI Operation: 189% profit in 34 days (volume breakout model);

  • Maximum Loss Control: 8.7% (2022 bear market).

The core of this system is strict position management + trend grading, controlling risk within 8%, while using a volume-price model to capture large trends of more than 3 times. Remember: Making money in the crypto world relies on discipline, not luck!

I am Wenhua, a professional analyst and teacher, a mentor and friend on your investment journey! As an analyst, the most basic thing is to help everyone make money. I will help you solve confusion and being stuck, speaking with strength. When you lose direction and don’t know what to do, follow me, Wenhua will guide you.

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