Once upon a time, I was also a 'model loser': staring at the market for 12 hours a day, with dozens of indicator lines on the chart, trying to conquer the market with complexity.
The result was not only that my body collapsed, but my account also continued to shrink due to frequent trading. It wasn't until my two comrades and I reviewed thousands of transaction records that we realized: truly effective strategies are often counterintuitive and simple. Now, I only spend 10 minutes a day, and my win rate remains stable at over 95%.
1. The root of losing money: complexity is a trap, simplicity is the answer.
Most people lose money due to overtrading: always wanting to catch every wave of fluctuations, frequently switching strategies, ultimately being drained by fees and emotions.
The real problem is: using tactical diligence to cover strategic laziness. The more indicators, the more conflicting signals; the more frequent the operations, the higher the error rate.
2. Core Strategy: Two moving averages, one discipline
My 'stupid method' has only three elements:
Extremely simplified indicators
Only look at EMA21 (short-term trend) and EMA55 (medium to long-term trend). Go long on golden crosses, go short on dead crosses, delete all other indicators.
Cycle filtering
Focus on the 4-hour candlestick, only check 3 times a day (8 AM, 12 PM, 4 PM). Ignore small cycle noise to avoid emotional interference.
Stop-loss iron rule
Always set a stop-loss for each trade, placing it outside the high and low points of the previous 4-hour candlestick, strictly controlling losses within 5% of total funds.
3. Daily 10-minute assembly line operation
8:00: Observe the relative position of EMA21 and EMA55 to determine the day's bullish or bearish direction (3 minutes);
12:00: Confirm the closing price of the 4-hour candlestick and its relationship with the moving averages, prepare to open a position when a golden cross/dead cross signal appears (2 minutes);
16:00: Set the stop-loss outside the high and low points of the previous candlestick, take profit at 2-3 times the stop-loss space, then close the software (5 minutes).
4. Mindset determines limits: execute foolishly, profit steadily
Give up perfectionism: don’t eat the fish head and tail, just eat the body. Achieving 70% of the trend is victory.
Embrace empty positions: better to miss out than to make a mistake when there are no clear signals.
Trust system: once the rules are established, execute like a machine. A single failure does not change the strategy; long-term persistence guarantees victory.
5. Why is the 'stupid method' more effective?
The market is always changing, but human nature does not: greed makes people chase prices, fear makes them sell off. The core of a simple strategy lies in stripping away emotions and letting the rules speak.
A truly mature trader is not a master predictor, but a disciplined executor.
Survival rules in the cryptocurrency world: it’s not the smartest who survive, but those who adhere to the rules.
Remember, the essence of stable profit is to carve out your own high certainty range using limited understanding in an infinite array of opportunities.
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