After blowing up 3 accounts and losing 80,000 yuan, I finally understood one thing:
In the cryptocurrency contract world, it's not a game for smart people; it's a project for 'honest people'.
Those 'warriors' who gamble based on feelings and hold positions on faith ultimately became fuel. Meanwhile, those who survived and continued to make money have all turned themselves into 'strategy execution machines'.
I don't discuss metaphysics, I only break down the core of my turnaround—a set of replicable strategy-building logic that grew from the ruins. Whether you are a beginner or an expert, you can use it to frame risks and say goodbye to the cycle of 'losing money by luck'.
Step one: self 'formatting' - first turn people into machines.
Don't rush to study candlesticks, first answer three fatal questions. Your answers directly determine what strategy you should use.
How 'thick' is your capital?
Thin (<1 million U): Your goal is survival and snowballing. Single entry ≤1/5 of capital, stop loss ≤5%. Use profits to take risks, never touch initial capital.
Thick (>100 thousand U): Your goal is to control drawdowns. Must diversify positions, separate trend, swing, and hedging positions to avoid a black swan taking you out in one blow.
How much time do you have to 'watch the market'?
No time (office worker): Forget about short-term. Your battlefield is 'daily/4-hour', looking three times a day is enough. Be a trend catcher, not cannon fodder for fluctuations.
Have time (freelancer): You can play '1 hour/30 minutes' swings, but you must set automatic stop losses and take profits, don't be bound by the screen.
Anytime (professional player): can do short-term trading, but remember, high frequency ≠ high returns, discipline requirements increase geometrically.
How 'impatient' is your personality?
Impatient and itchy type: stay away from long-term. Suitable for 'swing strategies', hold positions for 1-3 days, take profits as soon as possible, satisfy yourself with frequent small victories.
Calm and patient type: stay away from short-term trades. Embrace 'trend strategies', ignore intraday fluctuations, and let 5-10 days of large swings reward you.
Anxious type: use 'fixed amount stop loss' (e.g., exit if losing 100 U), do not use technical stop loss, you cannot execute it.
Step two: build the 'three axes' - entry, position, take profit and stop loss.
Forget about complex indicators. Experts only use one or two core tools to play to the extreme. Here’s a ready-made 'office worker small capital' template:
Entry: Bollinger Bands + Moving Average 'resonance'
Go long: price stabilizes above the upper Bollinger Band + the 5-day line crosses above the 10-day line + volume increases by 30%.
Go short: price breaks below the lower Bollinger Band + the 5-day line crosses below the 10-day line + volume increases by 30%.
Iron rule: if any one of the three is missing, absolutely do not open a position.
Position: pyramid and safety cushion.
5000 U capital, fixed 1000 U each time (1/5 position), leverage ≤5 times.
After making a profit, only use profits for incremental position increases. Losses? Absolutely do not add to the position. Adding to a position is the VIP channel to liquidation.
Take profit and stop loss: life-saving and letting go.
Stop loss (set upon opening): choose one, ① unconditionally exit if losing 8%; ② exit immediately if price breaks below the 5-day average.
Take profit (don’t be greedy): take half off at 10% profit to lock in profits; take some off again at 20% profit, set remaining position’s 'trailing stop' to the cost price, let profits run.
Step three: execute 'cold start' - backtest and simulate trading.
Don't use real money to experiment.
Historical backtesting: look for the market conditions of the past 3 months and manually simulate according to your rules. A win rate of ≥50% and a risk-reward ratio of ≥2:1 is the passing line. If not up to standard? Go back and adjust your entry conditions.
Small position trial: use 10% of capital (e.g., 500 U) to run a real account for 2 weeks. The core is to write a 'trading journal', recording every operation's 'plan vs reality', focusing on identifying your 'shaky' moments.
The ultimate rule: discipline > all strategies.
Strategies can be ordinary, but discipline must be ruthless.
Staying in cash is a high-level operation: 80% of the choppy market is used to kill both bulls and bears, if you don’t understand, stay out.
Trigger and execute immediately, no excuses: cut losses when they occur, hold on until profit targets are reached. Trust your rules, not your heartbeat.
Daily losses exceeding 10%, force shutdown: when your mindset collapses, your operations will only worsen. Stop, fight again tomorrow.
Remember:
When starting from 5000 U, I didn’t think about 'doubling', but rather 'can I not lose today'. All big money is built up slowly through countless certain patterns of 'small gains + small losses'.
If you are still 'opening positions based on feelings, closing based on prayers', stop, take a week to build your first strategy framework according to the above three steps. Turn investing from an abstract science into a solvable application problem.
When you no longer ask 'is it going up or down next', but ask 'has my strategy signal appeared?', you have already outperformed 99% of contract players.