In 2017, I stepped into this circle with 5000U. At that time, my friends around me were playing contracts, and some even faced liquidation that almost led them to sleep on the overpass. Yet, as a 'timid' person, my account curve resembled an old workhorse, slowly climbing up at a 45-degree angle. Over five years, my maximum drawdown never exceeded 8%.
I don't believe in K-line metaphysics, nor do I rely on insider information. My core principle is simple: the market is a large probability game, and what I need to do is find that 'probability cheat sheet' that works in my favor, and then execute like a machine. Today, I will break down and share the three core actions of this principle with you.
01 Dress profits in 'bulletproof vests'.
The first thing I do when I open a position is not to pray, but to immediately set up two orders: a take-profit order and a stop-loss order.
As long as the profits reach 10% of the principal, I will immediately do one thing: withdraw half of the profits, directly putting USDT into a cold wallet, and this is non-negotiable. The remaining half will continue to roll in the market.
This strategy has two benefits:
If the market continues to soar, you can enjoy compound interest with the remaining profits;
If the market suddenly reverses, you will at most give back half of the profits, and the principal remains intact.
It's like entering a casino: first, put the portion you won from your principal in your pocket, then use the chips you've won to play. If you play like this, how can your mindset be bad? Over the past five years, I have withdrawn profits more than thirty times, with the most in one week being 180,000U, causing the exchange's customer service to video call me asking if I was money laundering.
The core is: rolling positions do not use the principal, but 'money that comes from nowhere'.
02 Turn the market's 'fluctuations' into your 'ATM'.
Why do most retail investors lose? Because 80% of the market time is in fluctuations, while they are always guessing in a single direction. My strategy is different; it's called 'dislocation positioning'.
I look at three cycles at the same time:
The daily line determines the direction: look at the overall trend to know whether it is a bull market or a bear market.
Find the range in 4 hours: identify the main fluctuation range of the current price.
15-minute precise strike: Find specific entry points.
Then, for the same coin, I will open two orders:
A order (breakout chase): Set the stop-loss at the previous low of the daily chart.
B order (ambush limit short): Place above the resistance level (overbought area) on the 4-hour chart.
The stop-losses for these two orders are set very tight, not exceeding 1.5% of the principal, but the take-profit targets are set far, often more than 5 times the stop-loss. When the market fluctuates, the liquidation points of others become my 'ATM password'. Just like the LUNA crash, where there was a 90% spike in 24 hours, everyone in the group was guessing the bottom, but I achieved a 42% increase in my account in one day through pre-set long and short orders.
The true advantage lies not in precision, but in the strategy itself having a mathematical expectation advantage. By entering the market when prices slowly approach support or resistance levels, and volatility decreases, very tight stop-losses can be set, thus obtaining a very high risk-reward ratio, such as 1:5 or even higher.
03 Treat the 'stop-loss' as your entrance ticket.
Do not treat stop-loss as cutting losses; treat it as a 'ticket' you must buy to participate in a big market.
My win rate is actually very low, only about 38%. But why can I make money? Because my risk-reward ratio is very high, averaging at 4.8:1. Calculating it out, the mathematical expectation is positive at +1.9%. This means that for every 1 unit of risk taken, I can steadily earn 1.9 units in the long run.
I allow myself to take a small loss, using 1.5% of the principal to gamble for a chance to 'be the dealer'. If the market is strong, I move my stop-loss to let profits run; if the market turns against me, I run faster than anyone. In a year, I only need to catch two decent trends to outperform the vast majority of financial investments.
Brother Bin's practical memo.
Having only the mindset is not enough; discipline is also required. These three rules are my ironclad rules:
Capital slicing: Split the total capital into 10 parts, using at most 1 part for any single order, while holding no more than 3 parts simultaneously. This is the premise for survival.
Cooling off emotions: After two consecutive losses, I force myself to shut down and go to the gym or take a walk. Absolutely forbidden to open a 'revenge trade', which is key to understanding human nature.
Realizing profits: Every time the account doubles, I will withdraw 20% of the profits and convert them into traditional assets like US Treasuries or gold. The goal is to secure digital assets, allowing for a good night's sleep even in a bear market.
Regarding leverage, my advice is not to start with 20x. Using 5-10x leverage provides a much higher margin for error. Trying with a small amount of 50U is much smarter than paying tuition with a large sum directly.
In conclusion: True freedom is feeling justified after self-discipline.
The method sounds simple, but it is extremely counterintuitive in practice. Next time when you want to hold a position and go all in, remember this phrase:
'In the casino, they are not afraid of you winning; they are afraid of you not playing anymore. In the market, they are not afraid of you making mistakes; they are afraid that you cannot get up after a margin call.'
In this trading game, the ultimate goal is not to defeat the market, but to defeat the part of yourself that wants to overstep at any time. True freedom is not doing whatever you want, but feeling justified after self-discipline. Follow Brother Bin to learn more firsthand information and precise points about the crypto circle, becoming your navigation in the crypto world; learning is your greatest wealth!#加密市场观察 #BinanceABCs $ETH
