Three rules that allow a small account to achieve a turnaround
At the end of last month, a loyal fan of mine turned a small account from 3700U to 20,400U, a full 6 times increase, in just 31 days.
He didn't pursue any mysterious indicators, but strictly followed the three 'ant rules' I shared. Today, I will break down these practical insights and share them with everyone, hoping to help you maintain your principal and build a larger snowball in a volatile market.
Rule one: Start as an 'ant', don't think about getting rich overnight
I divided the initial funds into 100 parts, each worth 37U. The first order is always just 1 part (37U), never taking unnecessary risks.
Many people come in heavy right away, and when the price fluctuates, their mindset collapses. The essence of position management is to control your mindset, allowing you to remain calm even in unfavorable market conditions.
When I place an order, I will definitely set up two layers of insurance simultaneously:
Stop-loss: Set at 0.992 times the opening price, and place it in advance on the exchange, not giving yourself a chance to hesitate. Stop-loss is not giving up, but providing a safety net for trading to prevent a single loss from getting out of control.
Supplementary position plan: Pre-reserve three levels of supplementary position spacing based on the average volatility of the past two weeks to avoid operating based on feelings. If the initial position is too large, the subsequent supplementary position rhythm will be completely disrupted, which is a major taboo.
Remember, the primary duty of ants is to survive, not to move all the food on the first day.
Rule two: Only increase positions during 'stormy weather'.
I often use the 4-hour ATR (Average True Range) as a market volatility radar. When volatility suddenly expands to twice the 60-day high, I call it 'stormy weather'.
Only on stormy days can ants transform into 'mantises', expanding positions in three steps:
Initial order 37U (1 ant).
When floating profits reach 50%, increase position by 74U (equivalent to 3 ants).
After the price breaks above the previous high, increase to 240U (about 10 ants, accounting for about 26% of the total position).
But be aware that the third step of increasing the position must meet two conditions: the on-chain top 10 addresses hold less than 45%, and the funding rate within 24 hours turns from positive to negative. Both conditions must be met; it's better to miss out than to make a mistake.
Stormy weather doesn’t appear often, but once it does, it’s an opportunity window for trend traders. Volatility is a double-edged sword; high volatility periods bring both risks and greater profit potential.
Rule three: Set a 'alarm clock' for profits, and take profits when the time comes.
When account profits ≥ 300%, I will first withdraw the principal and half of the profits, leaving the rest in the market to continue rolling. You must have the courage to hold profits, but the premise is that the principal is safe.
Remaining profits enter 'alarm clock mode':
For every 10% increase, adjust the stop-loss line up by 7% to lock in profits.
Between 1 AM and 3 AM, I will definitely place market orders to take profits on part of the position, leaving no room for manual operations.
Why choose this time period? Based on my statistics over the past two years, cryptocurrency flash crashes often occur during this period, with a probability more than four times higher than usual. Nighttime liquidity is low, and large orders easily trigger severe fluctuations, so it’s better to set automatic take-profit in advance.
Mindset is key: Discipline is greater than everything.
These three points may seem simple, but execution is key. Many traders fail not because their strategy is poor, but because emotions interfere with their decisions.
In my view, position management is not a skill, but discipline. In times of severe market fluctuations, proper position management can help you maintain a calm mindset and not panic due to short-term fluctuations.
I often tell people in the community: 'You must first learn to be an ant before you can transform into a mantis at certain moments. But regardless of what you become, when the alarm rings, profits must be taken.' This is also my insight for surviving through volatility in the past few years.
For small accounts to roll a large snowball, the core is three phrases: start with phased bets, be cautious when volatility amplifies, and decisively harvest profits when they are in place. I hope this 'ant moving' mindset can help you survive better in this market. Follow Brother Bin to gain more first-hand information and accurate points in the crypto circle, becoming your guide in the crypto world; learning is your greatest wealth!#ETH走势分析 #韩国丢失遭扣押比特币 $ETH
