After trading cryptocurrencies for over 10 years, 2025 marks the 10th year of my professional trading career. Currently, I have a stable monthly income in the seven figures and an annual income in the eight figures, all thanks to this trading strategy with a win rate of 90%. A method I have personally tested: last year, in less than a year, I turned an initial capital of 50,000 into nearly several million.
If you plan to invest in the cryptocurrency market, please take a few minutes to read my answer word for word, as it may save your life and your family.
Thousands of originally happy families end up broken and ruined, stemming from the pursuit of an unattainable dream of making a fortune in the cryptocurrency market. I believe the reason I can continue on the trading path is that I have always been dedicated to learning, focusing not only on understanding the fundamentals but also analyzing news and researching technical indicators, as well as developing a stable profit-generating trading system!
In addition to solid techniques, I strictly adhere to the following 10 trading rules!
First, do not easily let low-priced chips be taken away; remain firm in your convictions to prevent market makers from manipulating the market.
Second, chasing highs and cutting losses is always a big taboo. If the overarching trend is favorable, building positions in phases during a downturn is less risky, costs less, and has higher profits than chasing highs.
Third, allocate profits reasonably to maximize the release of funds rather than continually increasing positions.
Fourth, recover the capital quickly in a surge and protect your coins in a drop. At all times, maintain a positive mindset; do not speculate, do not be impatient, do not be greedy, do not fear, and do not engage in unprepared battles.
Fifth, the initial low-priced coins in the private placement or pre-sale rely on experience and the market maker's gamble on the coin's future, while the subsequent secondary market game relies on technology and information to follow the market. Do not lose sight of the fundamentals, or you will end up in chaos.
Sixth, build positions and exit, ensuring to do so in layers and segments. Gradually widen the price segments to effectively control the ratio of risk to profit. #FederalReserveRateDecision
Seventh, be familiar with the linkage effect; when trading coins, observe the market trends while also paying attention to the movements of other coins. Each coin does not exist in isolation in the overall market; although they may seem unrelated, they are intricately connected. Understanding the linkage effect is essential for each coin. Nowadays, many tools can be used to check coin information and news.
Eighth, the allocation of hot coins and value coins must be reasonable. Attention should be paid to the ratio of pressure resistance to profit intake; being too conservative may lead to missed opportunities, while being too aggressive may face high-risk situations! The main characteristic of value coins is stability, while hot coins, particularly, can be extremely volatile, potentially soaring or plummeting.
Ninth, having coins on the market, money in accounts, and cash in pockets is the safest and most reassuring configuration. One should not go all in; doing so is fatal. Proper risk control and reasonable allocation of funds are key to determining your mentality and success. Investing with spare cash is fundamental.
Tenth, master basic operations, learn to extrapolate from one to another, grasp the basic ideas of trading, and observation is the premise. Remember every high and low point as reference data, learn to take notes, summarize materials, cultivate reading habits, and develop the ability to filter and screen information. #StablecoinBoom
From a trading mentality perspective, selling is an ambiguous and often unpleasant task. However, I believe that once a coin reaches the selling conditions, it should be decisively abandoned. No one can sell at the ideal position every time; the selling position should not pursue the highest but rather the reasonable!
So how can one excel in trading cryptocurrencies? Once a person enters the financial market, it is very hard to turn back. If you are currently facing losses yet remain confused, and you plan to treat trading cryptocurrencies as a second career, you must understand the 'Ahr999 Coin Holding Indicator.' Grasping it will certainly help you avoid many detours, based on personal experiences and feelings; it is advised to save and ponder over!
1. Overview
This article will mainly introduce how to use indicators to identify tops and bottoms and how to optimize investment strategies.
2. Five key indicators teach you how to identify tops and bottoms.
1. Ahr999 Coin Holding Indicator
Indicator introduction: This indicator was created by Weibo user Ahr999 and assists Bitcoin dollar-cost averaging users in making investment decisions based on timing strategies. This indicator implies the short-term dollar-cost average yield of Bitcoin and the deviation of Bitcoin prices from expected valuations.
How to use:
When the ahr999 index < 0.45, it is a good time to buy the dip.
When the ahr999 index is between 0.45 and 1.2, it is suitable for dollar-cost averaging.
When the ahr999 index > 1.2, the coin price is relatively high and not suitable for dollar-cost averaging.
Recommended reading from the indicator author (Hoarding Bitcoin)
2. Rainbow chart
Indicator introduction: The rainbow chart is a long-term valuation tool for Bitcoin. It uses a logarithmic growth curve to predict Bitcoin's potential future price direction.
It covers the rainbow color band at the top of the logarithmic growth curve, attempting to highlight the market sentiment of each rainbow color phase as the price passes through it. Therefore, it highlights potential buying and selling opportunities.
So far, the price of Bitcoin continues to remain within the rainbow color band of the logarithmic growth channel.
How to use:
The closer it is to blue, the more it indicates that the price is approaching the bottom.
The closer it is to red, the more it indicates that the price is approaching the top.
3. RSI
Indicator introduction: RSI (Relative Strength Index) is an indicator that measures the speed and magnitude of Bitcoin price changes. The RSI score is calculated based on the performance of the previous 12 months, used to judge the strength of market trends and whether it is in an overbought or oversold range. The stronger the upward momentum, the closer the RSI gets to 100, and a high RSI also indicates relatively positive price changes in the previous 12 months; conversely, the stronger the downward momentum, the closer the RSI gets to 0, with a low RSI value indicating relatively negative price changes.
How to use:
An RSI value of 30 or below (the closer to red) indicates that Bitcoin is oversold or may soon face overselling, making it suitable to consider buying the dip.
An RSI value of 70 or above (the closer to green) indicates that Bitcoin is overbought and may soon face a decline, making it suitable to consider selling. #WhiteHouseDigitalAssetsReport
4. 200-week moving average heatmap
Indicator introduction: This indicator uses a colorful heatmap based on the percentage growth of the 200-week moving average.
Assign a color to the price chart based on the monthly percentage growth of the 200-week moving average.
Historically, Bitcoin's price has bottomed near the 200-week moving average during each major market cycle.
How to use:
The closer the dot color on the price chart is to red, the more it indicates that the market is overheated and suitable for selling.
The closer it is to purple, the more it indicates that the market is too cold, making it a suitable time to buy.
It is important to note that this indicator failed at the top of the previous bull market, indicating that we cannot rely solely on indicators. Indicators are just tools to assist our judgment, and we need to consider many other factors when making decisions.
5. CVDD
Indicator introduction: CVDD stands for Cumulative Value-days Destroyed.
How to use: When the Bitcoin price touches the green line, it indicates that the Bitcoin price is severely undervalued, making it a good buying opportunity.
Summary
To facilitate readers' use of these indicators, we have created charts.
It is important to note that these indicators provide references for buying and selling Bitcoin and do not imply that other tokens can also be bought.
3. Strategies suitable for cyclical trading.
When we engage in long-cycle trading, it is easy to encounter situations like the one shown below, often caused by subjective judgment errors. If we formulate a strategy in advance, we can avoid such mistakes.
1. Combine the Martingale theory with dollar-cost averaging.
First, let us understand the concepts of the 'Martingale Strategy' and 'Dollar-Cost Averaging.'
Martingale strategy: The Martingale strategy was initially a gambling strategy, which refers to increasing the bet by a multiple of 2 every time you lose until you win. Suppose in a fair betting game, the odds of winning and losing are both 50%. Thus, at any given time, the probability of losing once is 50%, losing twice in a row is 25%, losing three times in a row is 12.5%, losing four times in a row is 6.25%, and so on. The more times you play, the smaller the probability of losing becomes, and theoretically, with infinite funds, one cannot lose.
Later, the Martingale strategy was applied to trading, taking the form of pyramid-style position increases (the Martingale strategy can be subdivided into reverse Martingale, forward Martingale, and scalp Martingale; the one we are introducing belongs to reverse Martingale).
Dollar-cost averaging: Dollar-cost averaging is a long-term investment strategy that involves regularly purchasing assets according to a plan to average out the buying price. This strategy emphasizes continuous investment and long-term holding, rather than trying to profit from short-term market fluctuations.
When using the above indicators, these indicators cannot tell us the precise bottom and top points; they can only judge the relative bottoms and tops within a cycle. Moreover, we cannot constantly watch the indicators, which is why we need to engage in dollar-cost averaging.
How to formulate a strategy: We can apply the ideas of the Martingale strategy to dollar-cost averaging, thereby maximizing the reduction of our holding average cost. The specific strategy can be formulated as follows: the current Bitcoin price is $37000. Assuming we start dollar-cost averaging from this price, based on the above indicators, we can judge that the current Bitcoin price is at a relatively moderate position, making it suitable for dollar-cost averaging. We set the benchmark amount for dollar-cost averaging at 1000 Yuan, with a frequency of once a week. In each weekly investment, if the price rises by $1000, we will reduce the investment amount by 5%. If the price drops by $1000, we will increase the investment amount by 5%, provided that the indicators indicate that the Bitcoin price is still within the dollar-cost averaging range. When Bitcoin rises beyond this range, we will pause the dollar-cost averaging plan and resume it once it returns to the range, or we will monitor the indicators to reduce our positions. These strategic parameters are only examples; different parameters will naturally lead to different returns. Readers can formulate their dollar-cost averaging strategies based on this process.
Disadvantages: The Martingale strategy claims 'never to lose money', but this is based on the premise that the trading target will not go to zero and that the trader has infinite funds. Therefore, the Martingale strategy is not suitable for trading long-tail assets; the larger the trader's funds, the more the advantages of the Martingale strategy manifest.
2. How to use the grid strategy to expand profits.
When we engage in long-term investments, holding Bitcoin in spot and depositing it into decentralized lending platforms yields low APY; if deposited in exchange financial products, the APY is considerable but limited. To improve fund utilization and earn additional income, using spot grids is a good choice.
Spot grid strategy: The spot grid strategy is an automated strategy executed within a specific price range, allowing users to set the highest and lowest prices of the range and determine the number of grids to divide it into before starting the strategy. If needed, users can also set trigger conditions in advance, and once the market reaches those conditions, the strategy will automatically run. The strategy will calculate the buying and selling prices for each small grid, automatically placing orders, and continuously buying low and selling high to earn profits from market fluctuations.
How to formulate a strategy: Generally speaking, the grid strategy is suitable for oscillating markets or upward-trending markets. It is not suitable for one-sided markets. The disadvantages of grid strategies are evident; when prices rise or fall outside the set interval, it can lead to missed selling opportunities or unwanted purchases, which is why some people refer to it as a garbage strategy. We have optimized the grid strategy; we do not choose the conventional non-stable coin/stable coin traditional grid strategy. Instead, we choose the ETH/BTC trading pair in conjunction with the infinite grid strategy.
The infinite grid strategy is an advanced version of the ordinary grid strategy. The infinite grid ensures that users hold an equivalent amount of currency assets during bullish markets. Using the infinite grid strategy, regardless of how many times a user sells, they still hold an equivalent amount of assets as in the previous position. For example, if the initial price is 20000 USDT/BTC, and the user holds 1 BTC, they possess 20000 USDT in assets for investment. When the price rises to 40000 USDT/BTC and they sell half a unit, the user still holds half a unit, retaining 20000 USDT in assets for investment. When the price reaches 80000 USDT/BTC, selling a quarter unit means the user still has a quarter unit, hence still possessing 20000 USDT in assets for investment. The infinite grid strategy does not have a defined top range, so it effectively avoids the risk of missing out on sales due to continuous price increases.
So why choose the ETH/BTC trading pair? Our idea for optimizing the grid strategy is how to avoid losses caused by prices exceeding the grid range. However, due to the nature of the grid strategy itself, we cannot solve the losses caused by continuous price decreases. We can only reduce the losses incurred from declines. The ETH/BTC pair reflects the relative strength of ETH and BTC movements; from a cyclical perspective, the ETH/BTC exchange rate trends upward during a bull market and trends downward during a bear market. The ETH/BTC trading pair fits well with the infinite grid strategy suitable for long-term slow bulls. Furthermore, we not only gain profits in BTC but also benefit from the bullish rise of ETH and BTC.
4. Summary
Although the indicators and profit methods introduced in this article focus on Bitcoin as the investment target, readers can also apply this bottom-hunting and top-selling thinking to invest in other coins. Additionally, the price changes of Bitcoin also provide guidance for the trends of other coins, especially mainstream coins with higher market capitalization.
Regardless of the indicator, each has its inherent invariability. Although black swan events frequently occur in the market, the crypto market will not go to zero. As long as there is participation and it does not go to zero, prices will always fluctuate. There are cycles; it is not only an estimation of value but also a time-based validation. For ordinary investors, as long as they make good use of the cycle and reap the benefits of industry development, that is enough. This is true not only in the cryptocurrency space but in other industries as well. The multiple is not important; the most important thing is to sustain oneself. What the crypto space lacks is not opportunity, but the ability to participate continuously.
All the above are a summary of my more than 10 years of practical experience and techniques in trading cryptocurrencies. They may not apply to everyone, and each person needs to combine their own practice to use and summarize. As a trader, the most terrifying thing is not technical problems but insufficient cognition, falling into trading traps without realizing it! There is no invincible trading system, only those who use trading systems invincibly! This is the truth; trading systems ultimately have to return to the individual!
Even the most diligent fisherman would not go out to sea during stormy seasons but rather protect their boat with care. This season will eventually pass, and sunny days will come! Follow Old Chen, and he will teach you both fishing and how to fish. The doors of the cryptocurrency world are always open. Only by going with the flow can you live a life in tune with it. Save this and keep it in mind!
