As a veteran in cryptocurrency trading with 5 years of experience, I have seen too many small investors lose everything in trading - whether chasing prices or relying on 'insider information', complicating a simple logic for making money! Today, I will share a tested effective 'foolproof strategy' for funds under 100,000, which you can use without watching the market until dawn or understanding complex candlestick patterns; as long as you execute properly, you can make a profit. Several of my followers have relied on this to grow from 30,000 or 50,000 to six figures!
The core logic is this: the essence of making money in trading is not 'guessing price movements', but 'going with the trend + managing risk'. This strategy uses the most straightforward indicators to replace emotions, establishing fixed rules for 'buying, selling, increasing positions, and cutting losses', eliminating impulsive actions, making it suitable for all small investors seeking stability.
Step one: Select coins not randomly, just focus on 2 hard indicators (I filter with an accuracy rate of 80%)
Don’t listen to big accounts praising new coins or air coins! Open the daily chart, only look at two signals:
MACD must have a golden cross (the white line crosses the yellow line), and prioritize selecting 'golden crosses above the 0 axis' — this indicates that the coin is in an upward trend, and the probability of subsequent increases is 3 times higher than golden crosses below the 0 axis (I have statistically analyzed data from nearly 1 year, and it’s proven reliable);
Avoid newly broken and low circulation 'small transparent' coins, prioritize selecting mid-cap coins in mainstream sectors (like DeFi, storage sectors), with strong liquidity, no issues in buying or selling, and low risk of sudden crashes.
Remember: When selecting coins, it's better to have fewer than more; with funds under 100,000, take at most 2 coins at the same time, more than that is hard to manage and easy to operate chaotically.
Step two: The buy/sell signal is just one line, hold above the line, sell below the line (a blessing for lazy people)
Switch to the daily chart, set the daily moving average to the 20-day moving average (this is my 'lifeline' I’ve tested countless times, more stable than the 5-day and 10-day, more flexible than the 60-day):
As long as the coin price firmly stays above the 20-day moving average, regardless of whether it rises slowly or quickly, just hold on! Don’t stare at the screen every day and get tangled in 'should I sell', if the trend is there, don’t mess around;
Once the coin price closes below the 20-day moving average, sell that day! Don’t wait for a 'bounce back', don’t hold fantasies, breaking below is a signal that the trend is weakening, clinging to it will only get you deeper into trouble (I’ve fallen into this pit before, holding onto a coin that fell from 0.5 to 0.2 after breaking, directly losing 40%).
Step three: Position management matters, don’t be greedy for full positions, take profits safely
Small funds fear 'one toss', the position rule of this strategy can help you steadily increase your gains:
Buy: Coin price stabilizes above the 20-day moving average, first enter with half a position; if in the next 3 days the trading volume also stabilizes above the 'average line' (indicating strong buying), then fill up the remaining half position, never go all in at once;
Sell: Walk in 3 steps — If the increase exceeds 40%, sell 1/3 (to recover part of the principal, have peace of mind); if the increase exceeds 80%, sell another 1/3 (take profit while you can, don’t wait for a pullback); no matter how much it rises, as long as it falls below the 20-day moving average, clear out all remaining positions (even if still profitable, don’t take risks).
For example: Last week I selected a mid-cap coin, it stabilized at 0.23 yuan above the 20-day moving average, bought half a position; 2 days later the trading volume met the standard, filled the position; it rose to 0.33 yuan (a 43% increase) and sold 1/3, rose to 0.41 yuan (a 78% increase) and sold another 1/3, finally it fell to 0.38 yuan and broke below the 20-day moving average, clearing out the rest — in total 12 days, earned 62%, much more reliable than blindly speculating!
Step four: Stop-loss is the bottom line, sell below (don’t trade coins without this rule)
This is the most critical step, and it's also the mistake beginners most easily make! Remember: the 20-day moving average is your 'stop-loss line', as long as the price directly falls below the 20-day moving average the next day after buying (regardless of whether it's a negative news sell-off or a market pullback), you must sell all positions that day! Even if you lose 5% or 8%, accept it — keep the principal, and you can earn again next time.
I once lost from 10,000 to 3,000 because I didn’t set a stop-loss. Later, I strictly followed this rule and never experienced 'losing all my principal' again. Actually, according to our coin selection standards, the probability of falling below the 20-day moving average is very low, but risk awareness must be high; surviving in trading is more important than making more money.
Lastly, a heartfelt statement
Trading coins is a matter, the 'smarter' you are, the easier it is to lose; instead, this 'dumb method' is most suitable for small funds — no need for complex technical analysis, no need for you to listen to big accounts' nonsense, follow the indicators, execute properly, and steadily build up under 100,000 is more reliable than betting on a single toss!
Brothers, making money has never depended on 'luck', but on replicable rules and solid execution. If you find this strategy useful, hurry up and follow me! Next time I’ll share 'how to filter out coins that won’t crash', along with the 10 fatal pitfalls I’ve encountered, all gained from real money experiences; missing out could lead to big losses!
