300U capital optimal contract strategy (efficient flipping plan)
Core Principles: Strictly separate accounts | Only trade BTC+/ETH+ | Stop Loss > Take Profit | Limit of 3 times
1. Starting Phase: 300U→1100U (3-level sprint)
Strategy: 100U × 3 times, each with 10x leverage, 7% take profit / 5% stop loss (Profit-Loss Ratio 1.4:1)
Execution Steps: Level 1 (100U→200U) Goal: Profit 70U (7% take profit) Stop Loss: -50U (5%) Success → Enter Level 2, Failure → Remaining 200U adjust strategy
Level 2 (200U→400U) Goal: Profit 140U Stop Loss: -100U Success → Level 3, Failure → Remaining 100U guaranteed
Level 3 (400U→800U) Goal: Profit 280U Stop Loss: -200U Success → Capital reaches 1100U, enter stable strategy
A key discipline: No more than 3 times! Regardless of success or failure, subsequent trades should adopt a more conservative approach, only trading BTC/ETH, rejecting altcoins (low liquidity, high pin risk).
2. 1100U stage: Three-dimensional matrix strategy (ultra-short + swing + trend)
Fund allocation: Ultra-short positions (300U) → 15-minute quick in-and-out swing trades (500U) → 4-hour level trading + profit-dedicated investment in BTC.
Trend trading (200U) → Weekly big opportunity sniper reserve fund (100U) → Emergency position addition / sudden opportunity.
Ultra-short positions (300U, intraday trading)
Strategy: 10x leverage, EMA12 + MACD + (5, 13, 1) signal. Entry: Break above the previous 3 high points on the 15-minute K-line + increased volume.
Profit: 3%~5% (flexibly move stop-loss) Stop-loss: 2% mandatory stop-loss trigger: consecutive 2 losses → pause for 1 hour.
2. Swing Trading (500U, 4-hour level)
Strategy: 5x leverage, Bollinger Bands narrowing breakthrough entry: 4H Bollinger Band width <20% annual line, breakout upper band to go long / lower band to go short. Stop loss: 1.5 times the width. Profit handling: 40% weekly profit, dedicated investment in BTC.
3. Trend Trading (200U, weekly opportunities) strategy: 3x leverage, waiting for extreme market conditions: Weekly RSI + (14) < 30 (oversold) or > 70 (overbought), 3 consecutive K-lines in the same direction on the daily chart, 4-hour TD sequence += 9 (reversal signal). Take profit: Move the stop loss, profit-loss ratio ≥ 3:1.
3. Ultimate Risk Control (Line of Life)
Daily loss > 15% → Mandatory break for 24 hours. Weekly profit > 30% → Halve leverage the next day. Withdraw 20% of profits monthly → Secure profits.
Summary: First 3 levels (100U × 3 times) → Rapid accumulation of capital stage (1100U) → Ultra-short + swing + trend combination discipline > technology! Reject holding positions, reject frequent trading.
By doing this, you can both strive for high returns and control risks, making it suitable for players starting with 300U!
This method is also one I have personally tested: from February to March 2025, in one month, I turned 5000 into 100,000! The profit was 2108.17%!
Next, we will introduce two methods of position management!
1. Left-side position management
1) Do not shoot all your bullets at once; buy in batches!!!
2) You can divide the funds into several portions, and when you are unsure about the bottom, buying in batches is the most suitable method to average the cost!
(3) The bottom for adding positions should be flexibly handled according to market conditions. Do not add positions too frequently, as this negatively affects the averaging of coin prices. An initial 20%, 30%, or 50% is suitable for aggressive investors keen on bottom fishing!!!
(4) The initial position size is relatively small, and if the bought coin price does not rise but continues to fall, gradually increase the position, with the added proportion becoming larger, thus averaging the cost. This method has relatively low initial risk, and the higher the funnel, the more considerable the profit!
2. Right-side position management
(1) Buy 1: When the 5-day moving average crosses the 10-day moving average, increase the position by 30%!
(2) Buy 2: When the coin price effectively breaks through the lifeline, continue to add 30% to the position during the retest of the lifeline, ensuring that the total position reaches 60% at the beginning of the upward trend!
(3) Buy 3: Breakthrough at the neckline or other important resistance levels, then retest and stabilize, indicating that the reversal pattern has formed, again increase by 20%. The total position should reach 80%, holding until the breakout!
(4) Buy 4: When the coin price again shows a golden cross between the 5-day and 10-day moving averages above the lifeline, it is a typical signal for accelerating upward. At this time, the remaining 20% of the position should also be bought in time to maximize profits!!!
9 Rules for Survival in Short-term Trading!
1. You need to learn to wait. Contracts are like passing the baton in a drum. After emotional highs, there must be adjustments; after panic, there is a reversal. Use 20% of the opportunity to earn 80% of the profit, which is the irreversible law of the market.
2. Never over-leverage; heavy positions can lead to emotional reactions and create a vicious cycle. However, losses are a norm; the key is the mindset and finding new opportunities. To be profitable, focus on preserving capital first.
3. Be cautious when buying. Do not be impulsive due to direct price rises; there are plenty of opportunities in significant market movements. Consider indexes and sentiment to make judgments.
4. Be decisive in cutting losses when expectations are not met. Make quick decisions, and never waste time on losses. Seek new opportunities instead.
5. After making significant profits, it is necessary to withdraw. Large profits often indicate that the market is very euphoric, and a correction is imminent. Withdraw in time to clear the frenzy and add color to life.
6. Respect the market; do not judge the market subjectively. If the direction is not chosen by the funds, there is no need to hold on stubbornly. Engaging in the direction recognized by the market is the right path.
7. Do not take the baton after a climax; the market has reached a peak, and the passing game is about to end. Who will be willing to take over the next day?
8. Try not to trade in the afternoon. The short-term situation in the morning is already clear. When it is time to act, act decisively; simplify trading and avoid unnecessary entanglements.
9. Persist in reflection and summarization. Failure is not scary; what is scary is not learning anything. Let every failure become the foundation for success, and you will go further and further.
My cryptocurrency trading method is very simple and practical. In just one year, I traded to an eight-figure income. I only enter when I see an opportunity, and I do not trade without a pattern. I have maintained a win rate of over 90% for five years!
It can be said that I have used 80% of the methods and techniques in the market, but only the following indicators are the most practical, having caught multiple tenfold and hundredfold coins! Ignoring this graphic will cost you at least 20%!
If you want to treat cryptocurrency trading as a second career to support your family, then you must study this article seriously to avoid at least 10 years of detours!
We have talked many times about 'breakout trading,' which is an effective method to quickly follow up when a new trend appears. The best breakouts usually occur when the price breaks through a very obvious resistance level, which is closely watched by many market participants. At this point, market momentum often increases sharply, attracting more buyers to enter, thereby pushing the price further up.
However, capturing these breakouts is not as easy as it seems. In this article, we will discuss four different entry methods for breakout trading, each with its pros and cons.
Remember to choose the method that best suits your trading style to improve the probability of success!
How to enter breakout trading?
Determine the breakout level
Traders first need to determine the critical price levels or technical indicators for the breakout. This could be trend lines, moving averages, or resistance levels.
Option 1: Buy before the breakout
It is entirely possible to buy before the actual breakout occurs, which is known as 'anticipating the breakout.' However, there is no doubt that this method carries more risk than other options discussed below.
If you decide to adopt this method, ensure that you only choose stocks or varieties that show strong momentum and have increased volume before the breakout.
The main advantage of this method is that if a breakout does occur, you will profit quickly because you anticipated the breakout. However, the breakout may ultimately not happen, or the breakout may fail.
Traders using this strategy will typically test with small positions first and then buy again during or after the breakout to establish multiple positions.
Entry and Stop Loss
Buy while the price is still in a sideways consolidation phase. The initial stop loss is usually set below the sideways trading channel.
Option 2: Buy at the breakout
Buying at the breakout can ensure that a valid breakout has indeed occurred. For this option, it is also necessary to closely monitor momentum and volume. Stronger momentum and higher volume are early signals of increased buyer interest. This is much more likely to succeed than anticipating a breakout.
Similar to option 1, buying on strong breakouts has a chance to profit quickly.
However, there is still the possibility of false breakouts. On daily charts, false breakouts often manifest as prices breaking during the trading session but ultimately closing below the breakout level.
In this case, traders need to decide whether to continue holding (assuming the breakout will eventually happen) or to close positions immediately and wait for the price to attempt the breakout again.
Entry and Stop Loss
Once the price breaks through the determined breakout level, buy immediately. The stop loss can be set below the last candlestick (aggressive) or below the sideways range (conservative).
Option 3: Buy after the breakout
Option 3 is a more conservative strategy, but its advantage lies in providing higher certainty. Not only has the breakout occurred, but it is also confirmed because the closing price at the end of the trading day is above the breakout level. This eliminates the possibility of intraday false breakouts.
A major disadvantage of waiting for confirmation of the breakout is that you may miss part of the significant price increase. Breakouts of 10%, 15%, or even higher often occur. Not all traders are willing to enter when the price has already risen sharply.
Moreover, there is still a possibility that the price will fall back below the breakout level on the next trading day. Therefore, the possibility of breakout failure still exists, just not occurring on the day of the breakout.
Entry and Stop Loss
Once the price closes above the determined resistance level, buy. The closing price depends on the selected time frame. In this case, the stop loss can be set directly below the breakout candlestick (aggressive) or slightly lower to give the price more room for fluctuation, preventing premature stop loss (conservative).
Option 4: Buy during the backtest after the breakout
The last method is the most conservative. First, similar to option 3, wait for the confirmation of the breakout. Then, wait to enter after the price backtests the breakout level.
Successful backtesting serves as an additional confirmation signal after the breakout. This trading method requires traders to have immense patience and the ability to resist the temptation to enter early. Those using this method must accept that if there is no backtest after the breakout and the price continues to rise immediately, many breakout opportunities will be missed.
Some traders use backtesting methods to expand their initial (light position testing) positions to full positions. In this case, the method of backtesting is very important. The decline that causes the price to return to the initial breakout level should be controlled, and the sell volume should be lower than the previous buy volume.
Entry and Stop Loss
Buy when the price backtests the initial breakout level. When the price backtests the initial breakout level and shows a reversal signal, buy. The stop loss is usually set not far below the breakout level. However, you can also choose a more conservative approach by using the previous low point as a stop loss.
How to exit a successful breakout trade?
After a successful breakout, properly managing the long positions opened is very important for achieving structural profitability in the long term. Depending on your trading style, there are several ways to achieve this.
1. Set price targets
Price targets are set simultaneously with entry and stop loss. Ensure that your target is at least 1.5 times the initial stop loss.
For example, if you buy a stock at 12.92 yuan and set a stop loss at 12.49 yuan, the risk per share is 0.43 yuan. Therefore, if we want the price target to be at least 1.5 times the risk, we need to achieve at least 0.65 yuan in profit (0.43 yuan * 1.5). In this case, the minimum price target should be set at 13.56 yuan.
Assuming that half of your trades are stopped out, while the other half reach the profit target, this exit strategy can still yield profits.
2. Use trailing stops
This stop-loss method can ensure the protection of some accumulated profits when prices fall. However, as long as prices rise, the trailing stop will also rise, thereby protecting a larger proportion of profits.
3. Use technical indicators
Many technical indicators can provide insights into price movements, helping you determine whether the existing trend's momentum is strengthening or weakening. Below we will discuss several commonly used indicators that are helpful in this regard.
◎ RSI Indicator
This is a momentum oscillation indicator used to measure the speed and change of price movements. The default upper limit value of this indicator is 70. Above this value is considered overbought.
Traders should pay attention to possible trend changes (short-term or long-term). In particular, the divergence between the RSI indicator and price should be closely monitored to detect price changes in the early stages.
◎ MACD Indicator
This is a trend-following momentum indicator composed of the MACD line and the signal line. The MACD line crossing below the signal line can serve as an exit signal for existing long positions.
◎ Bollinger Bands
Bollinger Bands are used to monitor price volatility or the degree of fluctuation. They define the upper and lower limits where prices typically fluctuate based on the standard deviation of the moving average. If the price exceeds the upper limit (upper Bollinger Band), this may indicate that the price is overreacting and could lead to a price drop. Based on this, existing long positions can be liquidated.
Be cautious when using technical indicators as exit signals. In strong trend movements, they can produce many false signals, causing prices to rise further, leading you to miss out on significant profits over the long term.
It is best to use indicators as warning signals. Rather than closing positions immediately, it is better to manually adjust the stop-loss position slightly closer to the current price.
If the exit signal is correct, you will ultimately be stopped out (while retaining most of the profit). However, if the price continues to rise, you will continue to profit from the upward trend.
How to exit a failed breakout trade?
Just like managing profitable positions, properly managing losing positions is also crucial. The only quick and effective way is to use hard stop losses.
When using a breakout strategy, traders expect the trend to continue after the breakout. If the breakout fails to continue and the price drops again, the stop loss will ensure that losses are limited.
Previously, we mentioned the approximate position of the initial stop loss in each option. In this regard, we want to emphasize two points:
1. Closely monitor important support levels and strategically set stop losses below these support levels. If previous support fails to cause the price to rebound, this is a strong signal that the price may continue to decline. Stop losses will protect you from further price drops.
2. Do not set the stop loss too close to the current price. In this case, the stop loss may trigger too early. In many cases, you will notice that shortly after, the price moves in the expected direction. This can lead to a lot of frustration!
Summary
Key Points
1. Trading based on price breakouts is an excellent way to take advantage of new market trends.
2. After determining the breakout, you should always pay attention to momentum and volume before deciding to open a position.
3. The four entry methods for breakout trading include 'buying before the breakout,' 'buying at the breakout,' 'buying after the breakout,' and 'buying during the backtest of the breakout level.' Each method has its pros and cons.
4. Choose the method that best suits your personal trading style, which can provide you with the greatest chance of success.
5. Risk management also plays an important role in long-term success. A reasonable exit strategy to protect profits or limit losses is crucial in this regard.
Frequently Asked Questions
1. Can breakout trading be profitable?
Generally speaking, breakout trading can be very profitable. Successfully identifying breakouts and entering at the right time can yield considerable profits, but there is always the possibility of false breakouts or prices not moving as expected. Remember, no strategy can generate profits without encountering losses.
Therefore, achieving sustained profits through breakout strategies is closely related to reasonable risk and position management. To this end, exit strategies that maximize profits and minimize risks (whether for profitable or losing positions) are crucial.
2. What is the ideal time frame for breakout trading?
Breakout trading can occur across different time frames. Breakout patterns can appear equally on 5-minute charts or monthly charts.
The ideal time frame for breakout trading depends on several factors:
● Your trading style and strategy
● Current market sentiment and overall market trend
● The volatility of the financial products you trade
Short-term breakouts (entry and subsequent actions completed within a few hours to a few days) are mainly used by day traders and swing traders. They primarily use intraday charts (5 minutes, 15 minutes, 1 hour, etc.) to identify areas of price breakouts.
Long-term breakouts (main goal is to participate early in a long-term trend lasting for weeks or months) are the preferred area for position traders. They mainly focus on daily and weekly charts to determine when and where to enter.
3. How to avoid false breakouts in trading?
To avoid false breakouts as much as possible, you can take the following measures:
● Wait for confirmation of the breakout, with the price closing above the resistance level. Although doing so may miss the actual breakout move, it can also avoid many false breakouts.
● Pay attention to additional confirmation factors supporting breakouts. Significant increases in volume before and after breakouts are the most important parameters. Breakouts with only moderate volume should be avoided.
● Observe long-term trends. Focus on varieties that have shown a clear long-term upward trend for upward breakouts.
● Consider overall market trends and market sentiment. Breakouts work best in a bullish overall market.
There is a saying I strongly agree with: the boundary of knowledge determines the boundary of wealth. A person can only earn wealth within the boundary of their knowledge.
Having a good mindset in cryptocurrency trading is essential. During significant drops, do not let your blood pressure spike; during significant rises, do not become complacent. Securing profits is paramount.
For those with limited resources, being pragmatic is an unbreakable way of survival. Good luck!
#美联储重启降息步伐 $ETH
