Today I won't talk about the myth of a hundred times return, but rather want to share a true story with you: how an ordinary office worker used the simplest methods to achieve steady growth in his account during a volatile market.
1. The account that made me rethink
In early 2022, my friend A Jie came to me with his trading records. With a principal of 50,000, he lost 60% in six months, leaving him with an account balance of 20,000. His trading list was shocking: a single-day maximum loss of 30%, three consecutive chasing gains leading to being trapped, and his last attempt to 'recover' with a full position directly plunged him into deep losses.
I asked him, 'What is your biggest feeling?' He bitterly smiled and said, 'Every time I was so close to making a profit, but I always fell before dawn.'
That afternoon, I deleted all the market alert apps from his phone, leaving only a simple Excel spreadsheet. Three months later, his account began to recover steadily. One year later, the account balance exceeded 200,000.
His transformation was not about learning to predict the market, but learning not to predict the market.
2. Survival Wisdom in Fluctuating Markets: The Essence of Grid Strategies
The current market is in a typical oscillation period: Bitcoin fluctuating repeatedly in the range of 106,000-109,000. This market characteristic is a nightmare for trend traders but fertile ground for grid strategies.
My ‘Five Grid’ strategy framework:
Step One: Layered Capital, Build a Safety Net
Divide the available funds into five equal parts, each completely independent.
For example, 50,000 U is divided into five 10,000 U parts, each bearing different missions:
Grid 1: Initial Position Establishment;
Grid 2-4: Downward Averaging;
Grid 5: Always keep as a backup for extreme situations.
This fundamentally eliminates the possibility of 'losing everything at once.'
Step Two: Target Selection, only associate with the strong
I only choose two types of assets:
Mainstream coins like Bitcoin and Ethereum (daily trading volume > 1 billion USD);
Blue-chip protocols with stable cash flow (like top DeFi protocols).
Principle: Better not earn than take risks.
Step Three: Grid Settings, Let Volatility Work for You
My parameter settings:
Grid spacing: 8-10% (adjusted according to the target's volatility);
Single grid position: 20% of total funds;
Stop loss setting: If a single grid loss reaches 15%, that grid stops loss but does not affect other grids.
This way, even if the judgment is wrong, the loss is controllable.
3. Practical Case: A-Jie's Road to Recovery
Phase One: Establishing the Grid (January 2023)
A-Jie used 50,000 U to establish an Ethereum grid:
Price range: 2400-3200 U;
Number of grids: 5 grids;
Spacing per grid: 160 U (approximately 6.7%);
Position per grid: 10,000 U.
Phase Two: Strategy Execution (January-June 2023)
During this period, Ethereum oscillated within the range:
Triggered buy 3 times (price fell to the lower edge of the grid);
Triggered sell 2 times (price rose to the upper edge of the grid);
Cumulative profit: 12,000 U.
Key: Every trigger must be strictly executed, not changing plans due to emotions.
Phase Three: Capital Optimization (Idle Capital Management)
Unused grid funds (averaging about 20,000 U) are used for:
Exchange's liquid wealth management (annualized 3%);
Government bond ETF (annualized 4-5%);
Stablecoin mining (annualized 5-8%, choose low-risk protocols).
This part brings additional annualized income of about 1,000 U.
Phase Four: Year-end Results
Grid trading profit: 38,000 U;
Idle fund earnings: 1,200 U;
Target Increase Yield (Ethereum rising from 2400 to 2800): about 8000 U;
Total yield: about 47,000 U, account increased to 97,000 U.
With the effect of compound interest, the account will exceed 200,000 U after a year.
4. My Grid Optimization Mindset
Mindset One: Dynamic Adjustment of Grid Parameters
I will check and adjust every month:
If the target's volatility increases, widen the grid spacing (e.g., 10%→12%);
If the market enters a trending market, reduce the number of grids and increase trend positions;
If liquidity deteriorates, pause adding new grids and wait for the market to recover.
Strategies must adapt to the market, not the market adapt to strategies.
Mindset Two: Risk Layered Management
I categorize risks into three levels:
Level One Risk: Single grid loss (maximum 20% of principal);
Level Two Risk: Target price breaks through the grid range (loss may reach 40%);
Level Three Risk: Black Swan Events (loss may exceed 50%).
Prepare response plans for each level of risk.
Mindset Three: Emotional Isolation Mechanism
I have set up three “emotional firewalls”:
Daily observation time does not exceed 30 minutes;
When profits reach 20%, forcibly withdraw 10% to the bank account;
Pause trading for a week when experiencing consecutive losses for two weeks.
In investing, managing emotions is more important than managing funds.
5. Advice for Newcomers with Different Amounts of Capital
Situation One: Principal below 10,000 U
Suggestion:
Only trade single targets like Bitcoin or Ethereum;
Set grid spacing to 10-12% (reduce trading frequency);
Put idle funds into the exchange's liquid wealth management;
Goal: Annualized return of 15-25%.
Situation Two: Principal 10,000-50,000 U
Suggestion:
Choose 2-3 targets with low correlation (e.g., BTC + ETH + a blue-chip DeFi);
Allocate 2-3 grids for each target;
Disperse idle funds into wealth management, government bond ETFs, and stablecoin mining;
Goal: Annualized return of 20-30%.
Situation Three: Principal above 50,000 U
Suggestion:
Seek professional grid trading tools or services;
Establish multi-strategy portfolios (grid + trend + arbitrage);
Regularly convert part of the profits into stable assets;
Goal: Annualized return of 15-20%, control drawdown within 10%.
The larger the capital, the more important risk control becomes.
6. Three traps to be cautious of
Trap One: Target One-sided Decline
If the price breaks below the grid and continues to fall, the grid strategy will keep averaging down, leading to over-leveraging.
Defense: Set a hard stop loss at the lower edge of the grid; pause averaging when losses reach 20%.
Trap Two: Long-term Sideways Consumption
Prices oscillate in a narrow range, with funds long-term idle and high opportunity costs.
Response: Narrow the grid spacing or add other profit strategies.
Trap Three: Liquidity Risk
Using grids on small market cap coins may face insufficient depth in buy and sell orders.
Principle: Use grid strategies only on targets with daily trading volumes exceeding 100 million USD.
7. Final Thoughts
I know, grid strategies sound not stimulating enough. No stories of overnight wealth, no myths of precise market timing, only mechanical execution day after day.
But I want to tell you: in this market where 90% of people lose money, boring stability is more valuable than exciting volatility.
A-Jie recently told me: “I now spend less than half an hour a day on trading, using the rest of the time to read, spend time with family, and improve my main business. Ironically, when I stopped staring at the candlesticks, my returns stabilized and grew instead.”
This is the greatest gift the grid strategy has given me: it has turned me from a slave of the market into a friend of time.
The market is always fluctuating, and opportunities always arise. But only those who have established their own systems and understand how to coexist with fluctuations can elegantly reap the gifts of time.
If you are also looking for a more relaxed investment method, feel free to follow.
I will continue to share:
Grid parameter adjustments in different market environments
Practical skills for managing idle funds
And, how to build your own 'trading system'
There are no myths of getting rich quickly here, only a sincere exploration of stable growth.
After all, in this infinite game—living steadily is more important than living fiercely.
Follow me@链上标哥 , don’t get lost! Move forward steadily, waiting for the flowers to bloom. 🌱
