First, let me give you some juicy information: At the end of last month, a complete newbie in my community took a small account of 3700U and managed to grow it to 20,400U in just 31 days! They didn't follow those so-called 'holy grail indicators' that are being hyped up, nor did they stay up late every night staring at the charts trying to guess the market. Instead, they just put the 3 'ant rules' that I repeatedly emphasized on their screen and mechanically executed them every day. Honestly, seeing the results made me laugh. This is what I've always said: Small funds turning around is not about luck; it's about 'counterintuitive dumb methods'!
Today, I broke down this logic in a casual way, with no nonsense, just actionable insights. As someone who has been in the crypto market for 8 years, I can guarantee: as long as you don't mess around and strictly follow the instructions, even small funds can gradually turn into a snowball.
Let me first throw out my core view: for small capital to survive and make money in the crypto market, the core is three words—light positions to explore, signal to add, and cash out at the right time.
Many new traders make fatal mistakes as soon as they enter the market: either going all in from the start, or adding positions chaotically as soon as there’s a slight rise, or stubbornly holding on when it falls. The essence of 'ant moving house' is to think of yourself as an ant moving food: taking small steps to try, waiting for the big opportunity to gather strength, and once you have enough, hide it quickly, accumulating little by little until it becomes a big snowball. This is not some profound theory; it's just the dumbest way to fight against human greed and fear.
Iron rule one: start as a 'humble ant', 1% principal to explore, double insurance locks in risks.
The first fatal flaw of small capital is definitely 'too heavy on the first position'. I have seen too many new traders put half of their capital in right away. Once they make a wrong judgment, not only do they lack the bullets to adjust, but their mindset collapses directly, leading to more chaotic operations, and ultimately losing it all. Therefore, I repeatedly emphasize: at the start, you must think of yourself as a 'humble ant' and only move the smallest portion of the capital!
1. Split the principal into 100 parts, only take 1 part for the first position.
No matter if your principal is 3700U or 5000U, first split it into 100 parts. Take the example of 3700U, each part is 37U, and the first order must be limited to 37U—no matter how stable you think the market is, and no matter how everyone around you is shouting 'rush in', you absolutely must not invest a penny more!
Why be so stingy? It's simple: even if the judgment is wrong, the maximum loss on a single transaction is 37U, which has almost no impact on the overall principal. Consider it as paying a fee to the market for education. But if the first position is 370U and you lose, it's 10%, and the mindset will explode, ruining the rhythm for the rest.
2. Set up 'double insurance' when opening a position, don't change it once it's written.
At the same time as placing an order, you must set up two 'dead rules' on the trading platform. Once set, do not change them manually, eliminating the wishful thinking of 'waiting a bit, it might rebound'—this is the most common point where new traders fail!
Stop loss: opening price × 0.992, which means only allowing a loss of 0.8% before automatically exiting. For example, if opening at 3000U, it will automatically close at 2976U, locking single transaction losses within 0.3U, equivalent to the cost of scratching a lottery ticket;
Additional positions: calculate the three levels of additional positions in advance, don't rely on gut feelings. I generally use 'the average volatility over the past two weeks' to set the intervals. For example, if a mainstream coin has an average volatility of $50 over the past two weeks, set the additional position interval at $20, only rely on data, and don’t let emotions sway you.
Here I must emphasize my personal opinion: the first position is not meant to make money; it is meant to 'explore the path'. For small capital to last long, survival comes first, then profit.
Iron rule two: only make big moves during the 'thunderstorm period', ants turning into mantises must pass the 'double signal barrier'.
Relying solely on the 'ant mode' can only earn a bit of money. Real returns depend on capturing big volatility. But I must remind you: big volatility is not guessed; it is waited for! I have used an 8-year 'radar' — the 4-hour ATR indicator. Only when the 'thunderstorm signal' appears is it allowed to upgrade from 'ant' to 'mantis'; otherwise, just stay obediently as an ant.
1. Use ATR to find 'thunderstorms': volatility reaches 2 times the 60-day high to count.
ATR (Average True Range) is the core tool for judging the 'intensity' of the market, without a doubt. When the 4-hour ATR suddenly expands to 'twice the 60-day high', it indicates that large funds have entered the market, and volatility will increase significantly. This is the 'thunderstorm opportunity' we are waiting for.
For a common example: if a mainstream coin has an average ATR of $20 over the past 60 days, and one day suddenly rises to above $40, then the 'thunderstorm' signal is triggered, indicating that the market is getting serious. This is when it is worthwhile for us to increase our investment.
2. Three-step increase: from 1 ant to 10, the position must not exceed 26%.
Even if the 'thunderstorm' comes, you cannot add positions randomly; you must follow the step-by-step rhythm, with clear conditions for each step—this is what I summarized after stepping on three pits. Whale control and long-short reversal are the two major killers for small capital, and you must guard against them!
First position: 37U (1 ant, accounting for 1%), enter the market when the thunderstorm signal appears;
First supplement: floating profit reaches 50% (37U earns 18.5U), add 74U (2 ants, totaling 3, accounting for 3%);
Second supplement: price breaks the previous high, add 139U (3 ants, totaling 6, accounting for 6%);
Third supplement: increase to 240U (a total of 10 ants, total position ≈ 26%)—this step is crucial. You must have 'double signals all green' to increase: ① On-chain top 10 addresses hold less than 45% (to avoid whale control and price drops); ② 24-hour funding rate turns negative (market sentiment reversal, shorts exiting). If one signal is missing, firmly do not add the final position!
My personal experience: adding positions is not 'add more as it rises', but 'add more as signals become clearer'. Without a thunderstorm, just let the ant crawl slowly; with a thunderstorm, upgrade to a mantis, and never bet on volatility in advance—betting right is luck, betting wrong is destruction.
Iron rule three: set 'alarm' for profits, withdraw principal at 3x profit, forced risk aversion at dawn.
What is the biggest regret of small capital? Making money but not being able to hold it. Either being too greedy wanting to make more, or staying up late and unable to keep an eye on the market, ultimately turning profits into losses. Therefore, the core of 'ant moving house' is to set an 'automatic alarm' for profits, locking in at the right time and leaving no chance for emotions.
1. Profit of 300%, immediately 'withdraw principal and lock in profits'.
As long as the single position's book profit ≥ 300%, for example, if the 37U first position earns 111U, total holding is 148U, immediately take out the principal of 37U + half of the profit 55.5U, leaving 55.5U of profit to continue the game.
Here's a calculation for you: 37U principal → profit of 111U → take out 92.5U → remaining 55.5U 'cost-free position'. At this point, whether the market rises or falls, you have no pressure. If it rises, you keep earning; if it falls, it's just a matter of earning more or less. The principal is already safe, and this is the 'peace of mind code' for small capital.
2. Remaining profits open 'alarm mode', forced profit-taking at dawn.
After taking profits, the remaining profit position must enter 'automatic protection' mode, no need to stay up late and watch the market:
Dynamic stop loss: every time it rises by 10%, raise the stop loss line by 7%. For example, if 55.5U rises to 61U, the stop loss moves from 50U to 53.5U, letting profits 'follow the price', allowing for more earnings while securing profits in time;
Forced profit-taking at dawn: A 'market price profit-taking order' must be placed between 1-3 AM. You can leave 10% of your position for continuation, but most of the position must be locked. Why? I have analyzed market data from the past two years, and 70% of sudden pullbacks in the crypto market occur between 1-3 AM. The risk during this period is four times higher than during the day. Mechanical profit-taking can avoid the pitfall of 'passively exiting in your sleep.'
Remember my words: profits are 'brought back', not 'gambled out'. When the alarm rings, profits must be taken; the numbers on the screen, no matter how high, are not as real as cash in your account.
