After ten years of struggling in the cryptocurrency world, it wasn't until seven years ago, under the careful guidance of a senior, that I suddenly realized and found a trading strategy that fits my own characteristics. Although I have not yet entered the ranks of the wealthy, I have achieved continuous profitability, which is enough for me to secure a spot in the top 20% of the investment community.
Years ago, I deeply realized that an excellent trading strategy is an indispensable tool for investors. Investing without systematic guidance is like a blind person touching an elephant, with slim chances of success. However, distilling an effective trading strategy is no easy task.
The reason why this strategy is efficient lies precisely in its contrarian nature. It requires us to abandon greed and fear, remain calm and decisive, reject personal assumptions, and steadfastly execute established policies.
In addition to discussing contract win rate techniques, I also strictly follow these 10 iron-clad rules of warfare.
1️⃣ Focus on quality, don't be greedy.
50-80k: Only focus on 1 type of asset (such as gold XAUUSD).
180-300k: At most 2 (Gold + EUR/USD).
500k+: Control 3-4 positions.
More varieties = scattered energy; losing sight of both will definitely result in losses!
2️⃣ Reduce positions; retail traders should not act as the 'single king'.
If you hold more than 5 positions and most are losing → cut immediately: first cut the breaking positions (e.g., breaking below the 20-day moving average), leaving those with good trends. In major markets, I only take ≤4 positions; being in cash is not scary, but holding losing positions is dangerous!
3️⃣ Technology and information serve only to support 'trending.'
Only go long above the 200-day moving average; only go short below. When the trend is right, earn passively; against the trend, no matter how good the technique is, it will be in vain!
4️⃣ Time patterns + volume and price, win rate 80%.
Do not panic sell during a sharp drop in the Asian market; wait for the European market or a rebound.
US market soared at the end, and the next day is likely to pull back.
Difficult to sustain low-volume fluctuations; only enter the market when breaking through key levels with high volume.
5️⃣ Only trade during active periods; watch the market during quiet times.
Gold active period: European market (14-20 o'clock) + US market (20-24 o'clock), daily fluctuations ≥30 points are worth trading; hard trading after 3 o'clock in the morning = wasting energy.
6️⃣ Differentiate strengths and weaknesses in volatility, find opportunities against the trend.
The US dollar soared, gold slightly fell (resilience) → bullish strength can be held.
When the market crashes, gold also falls; quick rebound the next day → buy on the pullback.
7️⃣ Stop-loss and take-profit iron rules.
Loss: The stop-loss level must not be moved down; if wrong, accept it!
Profit: For 100 points profit, reduce positions by 30 points; for 200 points profit, clear positions by 50 points; do not let profits evaporate.
8️⃣ A must-learn for beginners: Moving averages are 'teachers.'
Short-term: Go long above the 5-day moving average; exit on break.
Medium-term: Hold above the 20-day moving average, exit on break.
The simpler the method, the easier it is to execute!
9️⃣ Be decisive in buying and selling; do not hesitate.
Open a position immediately if conditions are met, and close it at the stop-loss / take-profit level. Mixing emotions = less profit / huge losses; trading must be 'mechanically executed'!
🔟 Only add positions on profitable trades; do not add on losing trades.
Increase positions on profitable trades in the trend, and absolutely do not add positions on losing trades! Before adding positions, ask yourself: 'If I didn't have this trade, would I buy it now?' If the answer is 'no,' then stop.
The essence of trading is 'self-control + execution ability'. If you thoroughly understand these 10 points, it’s actually not that difficult to go from a novice to stable profits! #Spot gold reaches an all-time high.
Recently, too many friends have been trading contracts, so I specifically wrote an article on how to significantly improve contract win rates using indicators for everyone's reference.
1. The timing for entering contracts: many friends open orders at any time during the 24 hours of the day, which is almost the same as giving away money. The purpose of contracts is to develop a relatively stable profit strategy under controllable risks and relatively stable indicators, rather than clicking to buy at 100 times leverage and then getting rich! Therefore, the timing of entering contracts is particularly important!
⑴: Do not open positions during times of significant favorable or unfavorable news, because the market is very chaotic at this time, and spot markets can fluctuate rapidly between 1-3%. Choosing to gamble on market trends can easily lead to being caught off-guard. #Strategy increases Bitcoin holdings.
⑵: I usually choose to enter after a large fluctuation during the second bottom or after a rise because the market's volatility will gradually stabilize after the second wave. The risk factor in the following range is the lowest. The purpose of contracts is to implement the most suitable strategy within the smallest risk range.
⑶: Enter the market within the indicator range. As long as the indicator parameters do not meet your expectations, do not open a position. This can be understood as entering the market within your strategy range, ignoring the market if it does not reach your psychological price point. Because when contracts leverage is increased, the risk factor also increases, so self-discipline is very important. In summary: when the market is stable and indicators are in place, the risk rate can be reduced by 50% before you can trade. #Non-farm employment data is coming.
2. Using indicators can improve the win rate.
⑴: MACD is a must-use indicator, it must be! MACD can most intuitively reflect the current market sentiment. As shown, the risk of going long at the blue peak is greater than going short, and similarly, the risk of going short at the red peak is greater than going long. But it does not mean that you must go short in the blue section and go long in the red section.
As shown: I would choose to go long at the peak point A, and I would also choose to go long at the peak point B. However, I want to remind everyone that MACD can reduce losses to some extent. When you are at a peak, regardless of going long or short, it is certainly more reasonable than blindly opening contracts or just watching the position price. Because the MACD peaks are usually reflected in the mid to later stages of a downward or upward trend, your entry price is much more reasonable compared to other periods.
⑵: Reasonably use the HalfTrend indicator to judge market trends; currently, I have not seen any analysts on the internet using HalfTrend; they generally prefer to judge trends based on candlestick charts. The advantage of HalfTrend is that it can judge whether the current short-term market is gradually rising or falling.
As shown: The red line sections of HalfTrend represent a good opportunity for shorting, while the blue line sections represent a good opportunity for going long. HalfTrend allows confused traders, who do not know whether to go long or short, to make reasonable choices. For example, if the current trend has moved through two steps of the blue section, then choosing to go long at a lower level has a higher probability of success than going short at a higher level.
⑶: Use the RSI indicator to determine the timing of entry; RSI mainly reflects the strength of the price and the speed of price changes.
As shown: I generally short in the green sections above the red line and go long in the red sections below the green line. That is, exceeding the green line at the top means that the price has strengthened beyond the parameters I set, which has a high probability of a pullback. Conversely, going long below the green line means that the price has weakened to my set parameter threshold, so the likelihood of turning strong is high.
⑷: Combine the above three indicators. If the market can simultaneously meet all three indicators, the accuracy of market predictions is extremely high (astronomical figures).
As shown, the points A and B simultaneously satisfy the three conditions of the indicator parameters, and the accuracy rate in this range is very high. Next, I will show a screenshot of my trading over one month. Since many fans and friends helped me with stress testing, I won't share the floating profit screenshots.
Currently, I have approximately executed 10 trades, and my trading model module, under 20 times the contract, can only control the profitability rate to a maximum of around 3%. Many trades I don't even have time to enter.
Currently, I am still testing the indicator parameters and continuously optimizing them. My expectation is to gradually stabilize around 5%, which would be considered an excellent trading model.
One more point to discuss: all indicator models have different flexibilities based on the K-line indicators at different times. For example, the parameters set for my indicators can only be applied to 15-minute K-lines. If I want to use the 4-hour K-line parameters, they need to be retested and adjusted. Moreover, the strategies for ultra-short and medium-long term differ greatly. I hope more people will help me stress-test my indicator models, as a large number of delivery orders are needed to statistically determine the final win rate and profitability.
Finally! Let me share a set of Eagle Watch indicator strategies! It can be learned in three steps! Eagle Watch trading indicators are explained in detail! Just learn it!
Also shared in a graphical way; friends who like it can give a thumbs up and follow!
All of the above are trading insights from 10 years of cryptocurrency trading. After many ups and downs, these are heartfelt words of enlightenment that I hope will be useful to everyone. Lao Chen's production is guaranteed to be high quality; there are beautiful people in the cryptocurrency world, unique and independent, with a soulful path and expertise in currency management!
No matter how diligent a fisherman is, he will not go out to sea for fishing in stormy weather but will carefully protect his boat. This season will eventually pass, and a sunny day will come! Follow Lao Chen to learn both fishing and fishing skills; the cryptocurrency market is always open. Move with the trend to have a life in line with the trend; save this and keep it in mind!
$ETH $BTC #加密市场回调
