Why do many people lose more as they trade cryptocurrencies, and why do they have less U as they trade more?

I turned an initial capital of 8000 yuan into 30 million, relying neither on insider knowledge nor talent; the core principle is simple: simplify complex trades and perfect simple logic.

My progression is very clear: it took 3 years to go from 80,000 to 3 million, 1 year to go from 3 million to 8 million, and only 5 months to go from 8 million to 30 million.

The more I understand, the more I realize: the speed of trading profits is inversely proportional to the frequency of operations.

I only focus on the N-shaped breakout pattern: a surge in volume to hit a peak, a decrease in volume with a slanted pullback to the 20-day moving average, and a second surge in volume to break the previous high.

Enter the market when the pattern forms, immediately cut losses when breaking down, never add positions or hold onto losing trades, and resolutely avoid leverage.

According to the expected value formula, a fixed 2% stop loss, 10% take profit, and a 35% win rate is a positive expected value strategy. Backtesting this strategy on mainstream coins in a 4-hour cycle for 2025 shows an annualized return of over 40%.

I only keep the 20-day moving average to filter out noise; every day at 9:50, I take a quick look at the 4-hour chart of mainstream coins. If there’s a signal, I place an order with set take profit and stop loss, and finish in 5 minutes, spending the rest of the time observing from the sidelines.

Capital management consists of three steps: withdraw the principal when reaching 1.2 million, withdraw half the position when reaching 6 million to allocate to fixed income and funds, and roll over the remaining funds. Three iron rules to remember: do not chase prices, do not hold losing trades, do not cling to battles.

There is no holy grail in the crypto world, only the sieve of discipline.

Don’t obsess over hundred-fold returns; consistently take a 10% profit for 20 times, and under the effect of compounding, reaching tens of millions is just a matter of time.

I’ve walked through pitfalls and don’t want you to step in them again. Here’s the "torch of discipline" handed to you; it’s your time to shine.

I, A Cat, do not boast or make false promises; I only share practical risk control experiences that can help you survive in the crypto world. Our team still has a few spots available; whether to walk the steady road together depends on your own choice. @比特阿猫