3 minutes to explain: Why I treat trading as a 'probability game', rather than guessing ups and downs
In 2017, I entered the market with 5000U.
In the same round of market, some people lost their homes due to contract liquidation, while my account remained stable and consistently increased, with a maximum drawdown never exceeding 8%.
It's not that I am better at reading candlesticks,
but that from the very beginning, I treated trading as a long-term positive expected value probability system, rather than a prediction game.
I don't rely on insider information, don't gamble on luck, and don't trust divine indicators,
I only do one thing: ensure that every trade is mathematically favorable for me.
Below are the three core aspects of this system.
1. Locking in profits with compound interest: Survive first, then amplify profits
For each trade, simultaneously set stop-loss and take-profit.
When the account profit reaches 10% of the principal,
immediately withdraw 50% to a cold wallet,
the remaining part is used for rolling positions, only using profits to bear fluctuations.
In a favorable market: compound interest continues to amplify
In an unfavorable market: at most, give back part of the profits, the principal remains intact
Core logic: It's the profits that collapse, not the principal.
2. Misaligned position building: Not betting on direction, only capturing volatility
I use a multi-timeframe structure:
Daily chart determines direction
4-hour chart determines range
15-minute chart executes entries and exits
Allow structural hedging for the same cryptocurrency:
A position: follow the trend breakout
B position: counter-trend ambush in the range
Single trade risk ≤ 1.5% of principal,
Risk-reward ratio ≥ 5:1.
The essence is not to bet on direction,
but to capture the 'premium' from market sentiment fluctuations.
3. Stop-loss equals huge profits: Use small losses to exchange for qualifications in major trends
My long-term win rate is about 38%,
but the risk-reward ratio remains stable at 4.5–5:1.
Even if most trades hit stop-loss,
as long as I capture a few trends,
the overall account still shows stable positive growth.
Stop-loss is not failure,
but the cost of entering the next opportunity.
Risk control discipline (determines whether you can stay in the market long-term)
Divide funds into 10 parts, using at most 1 part for a single trade
At the same time, hold no more than 3 parts
If you lose 2 trades in a row, forcibly stop trading
For every doubling of the account, withdraw 20% into low-volatility assets
In summary:
I do not pursue perfection in every trade,
I only guarantee: In a long enough sample, I will definitely win.
This upgrades trading,
from emotional speculation to probability engineering.