A simple and efficient method for trading cryptocurrencies, almost guaranteed to make a profit!
Do you also want to achieve financial freedom through cryptocurrency trading? Let me share a true story.
There is an uncle around me who was originally an ordinary taxi driver. After accidentally coming into contact with the cryptocurrency world, he began to seriously study trading and successfully made a comeback using a simple and effective method. Now his assets have surpassed 8 digits!
His cryptocurrency trading strategy has only 4 steps, very simple, yet the results are astonishing.
The following are the specific operations:
1. First stage: aggressive rolling (5000→100,000)
Ammunition cutting
Convert 5000 yuan to 700U (about 700 US dollars), split it into 7 batches of 100U principal, and only use 1/7 of the position each time.
Core rules: Take profit when the profit of a single transaction doubles (e.g. 100U→200U), and stop loss when the loss reaches 50% (e.g. 100U→50U). A maximum of 3 operations per day are allowed. Stop immediately when the cumulative profit reaches 2000U.
Hunting Target
Focus on the top 3 most popular currencies (such as BTC, ETH, SOL) and use 15-minute K-line charts to capture the sharp rise and fall of the market
Key Tips:
Ambush the "pin market" between 2 and 4 am and use reverse leverage to take advantage of the rebound band
Place an order 30 minutes before the release of major news (such as the Federal Reserve interest rate hike, ETF approval), with a leverage ratio of ≤20x
2. Second Phase: Split Warehouses to Slay the Dragon (100,000 → 1,000,000)
Funding cuts
Divide 100,000 yuan into three parts:
Ultra-short trading (40%): Target 15-minute fluctuations, exit at 3%-5% return, and trade ≥10 times per day
Trend Order (40%): Ambush weekly market trends with a 1:3 profit/loss ratio (e.g., long with 10x leverage when BTC breaks through its all-time high)
Insurance Premium (20%): Converted into USDC and deposited into the investment agreement, with an annualized return of 8%-12% to hedge risks
Killer Weapon
Dynamic Stop Loss: Adjust the stop loss level based on the ATR indicator (Average True Range). For example, if the current ATR is $200, the stop loss is set to the entry price ± 1.5 times the ATR.
Leverage Multiplication Technique: Use 50x leverage in the early stages of a bull market to capitalize on the "main uptrend." After profits exceed 30%, gradually reduce leverage to 10x to lock in profits.
3. Black technology blessing (win rate increased by 50%)
Scientist Script: Deploy Python scripts to monitor on-chain whale addresses and automatically copy large transfers to exchanges
Fee Arbitrage: Monitor Binance Perpetual Contract Funding Rates using tools like XBIT and open a reverse position to profit from the "long-short subsidy"
Gray market loophole: Using code receiving platforms to bulk register exchange accounts and receive new account bonuses to offset transaction fees
Fatal risk warning‼ ️
Compliance Minefields: Avoid using unregulated leveraged platforms and prioritize Hong Kong-licensed exchanges (with segregated funds).
Psychological trap: After three consecutive profitable days, a 24-hour cooling-off period is enforced to prevent overconfidence from causing a "single trade zero"
Leverage backlash: If your account equity drops by 20%, immediately halt your position for a week to avoid a vicious cycle of “revenge trading”
Summary: Roadmap to Getting Rich
Four years ago, I started playing with 200,000 yuan, and now I have 3,000,000 yuan, easily making a hundred times profit. The experience is summarized below for your reference!
It turns out that making money by trading is so simple, it only takes these three steps!
Master it and easily increase your account tenfold!
Step 1: Look at the trend first
Step 2: Find the key position
Step 3: Find entry signals
Enter the market, take profit, close the position, and leave
Isn’t it simple?
Let me explain it in more detail below.
Step 1: Look at the trend first
The state of a market, the market has three possible outcomes: rising, sideways, and falling.
What is a big market? Look at the period chart of 4 hours or more.
For example, 4-hour, daily, and weekly charts (my personal preference is to look at the 4-hour chart)
Go long when the price goes up, go short when the price goes down, and don't go short when the price goes sideways
Step 2: Find the key position
Whether the market is rising or falling, it will jump from bottom to top or from top to bottom like a bouncing ball.
What we need to do is to enter the market at the starting point and exit at the next landing point. How to find the precise step becomes the key #Bitcoin, which is what we call the key position (main support and resistance level)
Step 3: Find signals. Generally, if you find the market trend in the big cycle, you should look for trading signals in the small cycle to enter the market.#EthereumEveryone is good at different tactics, so mastering one or two is enough.
More importantly, a quick way to develop a trading strategy
A complete trading strategy includes
(1) Subject matter – what is being traded;
(2) Position - how much position is held;
(3) Direction – long or short;
(4) Entry point - at what point to trade;
(5) Stop-loss – when to exit a losing trade;
(6) Take Profit – when to exit a profitable trade;
(7) Countermeasures – how to deal with emergencies;
(8) Backhand - operations after the transaction is completed.
Opening a position follows the core of trading: flexible use of technology, positions, and strategies.
As we all know, the Pareto Principle (also known as the 80/20 rule) is extremely effective in all aspects, including time management and language learning.
If you've never heard of this rule before, its essence is this: 80% of your results come from 20% of your effort.
Of course, this is not an absolute value. But does this rule apply to trading? The answer is absolutely yes! Just like we mentioned the 10,000-hour rule before.
In this article, we’ll show you how to improve a trading strategy you’re already using with one simple tweak, and provide you with an action plan to help you decide if this is the right strategy for you.
I'll also share my own trading results and how to actually use this strategy when you feel like you "can't do it."
Are you ready? Let’s get started…
How to Use the 80/20 Principle in Trading
First we need to define at which stage of the transaction the 80/20 rule should be applied.
Should we reduce our time watching the market to 20% of the current level? Should we only trade 20% of the available currency pairs?
Maybe.
But what I want to say is that we can split the entry of a trade into two parts and set two different take-profit targets.
The first take-profit target is 80% of our total position, while the second is the remaining 20%.
You think this is not feasible?
Let's look at an example of an 80/20 trade:
This example is an outside candlestick (or engulfing) setup on the GBP/AUD.
The candlestick here formed beautifully right at a support level. If you want to follow along at home, here’s the H4 (4-hour) chart from April 20, 2016.
Do you also hope that every transaction can be so perfect?
I show this ideal entry point because it illustrates a key point well. In reality, not all trades will go as smoothly as this one.
When you enter a trade, you have several options. Here are some common ones:
1. 1 position, 1 profit target
2. 2 positions (50/50), 2 profit targets
3. 2 positions (50/50), 1 take-profit target, 1 trailing stop
4. 2 positions (80/20), 1 take-profit target, 1 trailing stop
So, which method works best?
Obviously, there are many other variations, but these are the most commonly used by traders.
Here's how these methods perform with a $1,000 account and a 2% risk per trade.
To simplify the calculations, we assume that we are using micro lots, which allows us to precisely control our risk. At the same time, the value of one micro lot is $0.001, the spread/swap is negligible, and there is no slippage.
In live trading, you can indeed use micro lots to achieve this kind of refined risk control, but the pip value of each currency pair will vary depending on the exchange rate and trading time.
Spreads, swaps, and slippage can affect your profit and loss results, but if you are using reasonable leverage and trading during active trading hours, these impacts are usually not significant.
Scenario 1: 1 position, 1 profit target
This is the most basic entry method, and one you’ve likely used before. In this example, using a 1R (1 times your risk) take profit target would result in a 2% return, or $20.
The stop loss is set at 143 pips and the take profit is also set at 143 pips. So you need to use 140 micro lots. The calculation is as follows:
$20 (total risk) = 143 pips (risk) × 140 micro lots × $0.001 (value per pip per micro lot)
The chart below shows the entry level (blue line), stop loss (red line), and take profit (green line).
Great! But look at all the extra profit you could have made, all missed out on!
The benefit of using a 1R take-profit target is that you will profit more often.
Some trading methods can have a winning rate of up to 80% to 90% when setting a 1R profit target.
But the disadvantage is that your account balance may fluctuate greatly because you did not seize the opportunities of large market movements, resulting in losses having a greater impact on your account.
So, what would happen if that 10%-20% loss happened to occur simultaneously?
That will be painful and can easily make you mentally unbalanced.
Therefore, a good strategy is to maintain a good winning rate while occasionally seizing a few multiple R profit opportunities. Such a combination is ideal.
This brings us to our next entry technique.
Scenario 2: 2 positions (50/50), 2 profit targets
Now, if we set two take-profit targets and risk 1% on each position (i.e. 70 micro lots each), this might help us to gain more profit. In this example, it works, and we get the following profit:
● Position #1: 143 pips × 70 micro lots × $0.001 per micro lot per pip = $10
● Position #2: 246 pips × 70 micro lots × $0.001 per micro lot per pip = $17.22
● Total: $27.22 (equivalent to a 2.72% return on the account)
So, if we break it down, in an ideal scenario, this approach would have earned 0.72% more than the 1 position strategy.
Not bad. But let's also consider a more common scenario: the second position is stopped out at breakeven.
Remember, when you chase a 2R return, your probability of success decreases significantly, sometimes down to 30% or less, depending on the trading system.
● Position#1(profit target reached): 143 pips × 70 micro lots × $0.001 per micro lot per pip = $10
● Position#2(Stop moved to entry point when first target was reached and then hit back): $0
● Total: $10 (equivalent to 1% return on account)
Therefore, your actual reward/risk ratio is 0.5R. While this isn't too bad, you are trading against the wind.
To compensate for this return below 1R, your win rate (especially on the second position) must be high enough.
As a side note: I used this strategy for several years and always felt like I couldn't really improve. This is certainly not the only reason, but it is definitely a significant factor.
We can do better…
Scenario 3: 2 positions (50/50), 1 take-profit target, 1 trailing stop
Now, things start to get interesting.
What if we are able to lock in profits exceeding 2R when prices really start to move significantly?
Like in this GBP/AUD example.
Therefore, in this scenario, when the price reaches the first take profit target, we will move the stop loss of the second position to the breakeven point. Then, we will move the stop loss according to the 1R interval.
Here’s how the stop loss for the second position would be adjusted:
● Entry: Stop loss is -1R
● Price hits first take profit target: move stop loss to breakeven
● Price reaches 2R: move stop loss up to +1R
● Price reaches 3R: move stop loss up to +2R
And so on...
I marked each 1R interval on the chart, and it looks like this.
It was very close, but you probably didn’t move your stop loss in time when the price hit 6R. But let’s assume for a moment that you did.
In this case, the second position will capture a profit of 5R. So in this scenario, we get the following results:
● Position #1: 143 pips × 70 micro lots × $0.001 per micro lot per pip = $10
● Position #2: 715 pips × 70 micro lots × $0.001 per micro lot per pip = $50
● Total: $60 (equivalent to a 6% return on the account)
That's more like it! A return of 3 times the initial risk (2%).
Don't worry, let's look at a more likely scenario:
● Position#1(hit take profit target): 143 pips × 70 micro lots × $0.001 per micro lot per pip = $10
● Position#2(moved stop-loss to entry price after price hit first take-profit target and then got hit back): $0
● Total: $10 (equivalent to 1% return on account)
Is it still not ideal?
In fact, this approach is much better because it at least gives us the possibility of catching a big move. But if the second position is never actually launched, we are still moving against the trend.
We still need to win three times for every loss (the winning rate must be at least 75%), or achieve an average net profit of 3R for each transaction to achieve overall profitability.
And it really depends on how many big market trends you can catch in a year.
It's not impossible, but we can probably do better.
This is where the 80/20 rule comes in...
Scenario 4: 2 positions (80/20), 1 take-profit target, 1 trailing stop
This is the balance we seek.
In this scenario, we still do the same operations as in Scenario 3, but slightly adjust the entry parameters - allocating 80% of the risk to the first position and 20% to the second position.
The calculation is as follows:
● Position #1: 140 micro lots × 0.8 = 112 micro lots
● Position #2: 140 micro lots × 0.2 = 28 micro lots
In an ideal 5R scenario, the results are as follows:
● Position #1: 143 pips × 112 micro lots × $0.001 per micro lot per pip = $16
● Position #2: 715 pips × 28 micro lots × $0.001 per micro lot per pip = $20
● Total: $36 (equivalent to a 3.6% return on the account)
Although this is lower than the 6% in Scenario 3, you actually made more money when only the first take-profit target was triggered:
● Position #1: 143 pips × 112 micro lots × $0.001 per micro lot per pip = $16
● Position #2: 0 pips × 28 micro lots × $0.001 per micro lot per pip = $0
● Total: $16 (equivalent to a 1.6% return on the account)
Don’t forget, we are not just looking at the potential maximum profit on each trade, we are also looking at the probability of a positive return on each trade.
To understand this advantage more intuitively, let’s assume you apply this strategy to 1,000 trades and have an 80% chance of hitting your 1R take-profit target.
Use Scenario 4 (80/20 Strategy):
● You will get 800 profitable trades (1000 × 0.8) and 200 losing trades.
● Each profitable trade earns 1.6%, so the total return is: 800 × 1.6% = 1280% (excluding compound interest)
● Loss: 200 × 2% = 400%
● Final net profit: 880% (excluding compound interest)
Use Scenario 3 (50/50 Strategy):
● If you only make 1% on each of the same 800 profitable trades, your total profit is: 800 × 1% = 800%
● The loss is still 400%,
● Final net profit: 400% (excluding compound interest)
Again, these numbers are simplified, but they clearly illustrate a key point: even a small adjustment in your entry can make a huge difference in the final results.
Same system, same risk, different position allocation.
Imagine how much more money this would mean over the course of your trading career!
However, this is not a "magic bullet".
When to Use the 80/20 Principle (and What to Watch Out For)
Before you rush into this approach, consider the following...
I am not saying that everyone should use this method. Like any other strategy in trading, it only makes sense within a specific trading style.
Applicable Scenarios
● You have a high win rate on your first profit target
● You are swing trading or trend holding trading
● You have multiple profit goals
● You can trade micro lots
● Your second or third profit target is fixed and you cannot take advantage of large market fluctuations
Not applicable scenarios
● Your first profit target has a low probability of success
● You are a day trader or scalper. Managing two positions can be very cumbersome
● You don’t have a tested trading system with a positive expected value
● You cannot trade micro lots
in conclusion
Ultimately, which entry method you use is entirely up to you. It must align with your personality, and I can't tell you which is right or wrong for you.
The key is that you have to backtest it yourself to see what works best for you.
But as you can see, if your existing trading method is effective, using an 80/20 entry strategy can boost your returns. In our example, it actually doubled the returns.
The Secret Weapon of Small Contract Players: A Secret to Mastering the Crypto Market
1. Patience is the key to trading
Many contracts traded on exchanges feature two-way trading. While the market may remain stable for extended periods, fluctuations can be unpredictable. Tops and bottoms can shift rapidly. Therefore, we must learn to observe patiently, waiting for trends to become clear and identifying reliable trading opportunities. Avoid rushing into trades and instead observe more and act less. True opportunities come from waiting.
2. Stay calm and don’t be greedy
Don't constantly aim to buy at the lowest point and sell at the highest point; this mindset can easily lead you into trouble. Don't rush into the market blindly based on a slight ups and downs. To become a skilled contract trader, you need to learn to endure the loneliness of a short position and maintain self-control.
3. When investing, we cannot rely solely on personal subjective assumptions
Predictions like "It's almost time to rise," "It might fall," or "Tomorrow will definitely see a big rise or fall" are common. Instead, we need a certain degree of certainty and act with confidence. If you're unsure, don't enter the market rashly; once you do, ensure you have a good chance of profit. Once your target price is reached, take profit promptly to protect your gains. To survive in the futures market, we must recognize market trends and follow them. We should maintain stability and adapt to market changes, but act decisively when circumstances change. When placing orders, we should adopt the mindset that "profit is the norm, loss the exception." As long as we can make money, there's no need to chase full profits. Even small daily gains can accumulate into substantial wealth over time. Avoid impulsive trading and act according to your trading plan.
4. Set stop-loss and take-profit orders at the right time
As a savvy contract investor or trader, stop-loss orders are a crucial skill in all markets. They're not only a timely correction for mistakes, but also a preventative measure against future risks. While timing your orders is crucial, waiting to unwind after a misjudgment only exacerbates losses and can even put you in an irreversible position. Only with the courage to make drastic changes can you survive in the market, allowing you to reflect on your decision-making process, identify shortcomings, and avoid repeating past mistakes.
Furthermore, when market opportunities arise, the courage to invest heavily is crucial to success. Hesitation will only lead to missed opportunities. Stop-loss and take-profit strategies are equally important; they help you lock in profits and control risk. However, this requires a deep understanding of the market and a solid foundation; blindly operating is unacceptable.
In the ever-changing trading market, staying informed about market dynamics is crucial. Knowing how to buy is like knowing how to sell; knowing how to sell is like knowing how to master. This is the iron rule of the market. Whether you're making a profit or a loss, you should strive to minimize losses and maximize profits. Without this, even if you forge ahead in the cryptocurrency world, you'll struggle to achieve long-term success.
Finally, you must have clear logic and a good mentality when trading. This will not only improve the accuracy of your transactions, but also help you stay calm in the face of market fluctuations, so that you can make more informed decisions.
I'm Ah Peng. I've experienced multiple bull and bear cycles and have extensive market experience in various financial sectors. Here, I'll penetrate the fog of information and discover the real market. Seize more opportunities to unlock wealth and discover truly valuable opportunities. Don't miss out and regret it!
Ah Peng only does real trading, the team still has positions to speed up #ETH重返3800 $BTC$ETH
