What is maximum drawdown? Why can a consistently profitable trading strategy still experience an unbearable series of losses?

In crypto trading, some strategies may generate positive returns over the long term but still suffer significant losses along the way. If traders do not assess in advance how far their account might fall, they may be forced to exit before the strategy has a chance to recover. Maximum drawdown is an important metric for measuring this risk.

First, what is maximum drawdown?

Maximum drawdown (MDD) is the largest percentage decline in an account’s net value from a previo

Fibonacci levels are consistently dependable. $BTC ‌

Futu / Longbridge / Tiger Brokers | Trading restrictions lifted | Private channel connections | One-on-one human service | Legal and compliant

Those who were kicking themselves at 100K,
Those who regretted having no position at 80K,
Those who swore they'd buy the dip if it returned to 70K,
It's at 69K now. Have you put your money where your mouth is?

Volume Suddenly Spikes—Is the Trend Strengthening or Is the Market Reversing?

In the crypto market, a sudden increase in trading volume often catches traders’ attention. Some see it as a sign that capital is flowing in, while others worry that large players are exiting.

When volume surges, why does the price sometimes keep rising, while at other times it suddenly reverses?

The key is that volume reflects changes in market activity, but it cannot, by itself, show that buyers or sellers necessarily have the upper hand.

First, observe how the price behaves when volume increases.

If the price

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📢 Today's Hot Topic | Jensen Huang Resigns as NVIDIA CEO—Will the AI Market Face a Turning Point?
NVIDIA announced that Jensen Huang has resigned as CEO and director. The news rattled the market, and $NVDA shares plunged at one point. Is Huang's departure just a short-term sentiment sh

#BTCD #ALTCOIN
Bitcoin is falling, and dominance is falling too.
Friends, Bitcoin dominance bounced from 61.10 on Thursday and fell to 60.10 on Friday morning. It dropped below the rising support line in place since late September.
This means Bitcoin is falling, but altcoins are falling less than Bitcoin. On Friday morning, Bitcoin fell 3.6%, while Solana fell 1.8%, XRP fell 1.2%, and Pepe was in the green.
If the daily close comes below the line, the 58.19 level I marked on the chart will be the target. This means altcoins are strengthening against Bitcoin. It does not mean they are rising in

What Are Support and Resistance Levels? Why Do These Price Zones Influence Traders’ Decisions Yet Remain Unreliable as Absolute Boundaries?

In cryptocurrency trading, prices often rebound or pull back repeatedly in certain zones. Traders usually call these zones support and resistance levels. They can help analyze market structure, but they do not guarantee that prices will rebound or reverse.

First, what are support and resistance levels?

A support level is a zone where buying pressure may increase and a price decline may temporarily slow; a resistance level is a zone where selling pressur

$SOL Currently at 79.87, down 3.68% over 24H. The 1H outlook is weak, with price below the EMA20 at 80.67 and RSI at 36. The 4H outlook is weaker, with an EMA20 of 82.76 and RSI at 32, showing downward momentum across both time frames. The volume ratio is only 0.23x, indicating low participation. Watch: a rebound is only worth considering if price breaks above and holds the 83.5 resistance on increased volume; if it breaks below the 77.92 support and fails to reclaim it, weakness will persist. Continue to check whether price can hold above 83.5; insufficient volume or a break below 77.92 inval

Why Should We Stay Alert to Overconfidence and Uncontrolled Position Sizes After a Winning Streak?

A winning streak is usually a good thing, but it can also subtly change a trader’s judgment. After several profitable trades, some may think they have mastered the market’s patterns and start increasing their position sizes, loosening their stop-losses, or even ignoring their original risk limits.

First, making a profit does not mean your judgment is always right. Market conditions change, and strategies that worked in the past may stop working. A few successful trades may reflect a strategic e

Why Doesn’t the Price Necessarily Fall Immediately When MACD Shows Bearish Divergence?

In the crypto market, when the price keeps making new highs while the MACD indicator’s peaks gradually decline, bearish divergence may form. Many traders view it as a short signal, but bearish divergence indicates that upward momentum may be weakening; it does not mean the price will necessarily fall immediately.

First, understand what bearish divergence means.

Bearish divergence usually appears when price highs continue to rise while the corresponding MACD highs gradually decline. This may indicate that

🔽 It seems Jensen Huang got involved with someone from the crypto exchange leadership: $1.62 billion in liquidations and BTC at $68k

#Bitcoin | #BTC | $BTC ‌

What Is Slippage? Why Isn’t the Price You See When Placing an Order Necessarily the Final Execution Price?

In cryptocurrency trading, many people see one price when placing an order, only to find that the actual price is different after execution. This phenomenon is commonly known as slippage. It may seem like only a slight price difference, but in highly volatile markets, large trades, or leveraged trading, it can significantly affect trading costs and the final outcome.

First, what is slippage?

Slippage is the difference between the expected execution price and the actual execution price.

What Is Momentum Trading? Why Can Prices That Keep Rising Attract More Buyers, While Momentum May Suddenly Fade?

In the cryptocurrency market, prices that keep rising may attract more traders to buy in, while sustained declines may trigger more selling. Momentum trading seeks opportunities by taking advantage of the possibility that a trend will continue, but a rise does not mean prices will necessarily keep going up, and momentum may weaken or even reverse at any time.

First, what is momentum trading?

Momentum trading is a trend-following strategy that primarily looks at an asset’s price p

What Is Overfitting? Why Can More Perfect Parameters Make a Strategy More Fragile?

A trading strategy performs almost perfectly in historical backtests, with a high win rate, a smooth equity curve, and a small maximum drawdown. It seems to have found a market pattern. But once it enters the real market, it may suffer frequent losses. One important reason behind this is overfitting.

First, what is overfitting?

Simply put, it means a strategy has adapted too closely to specific fluctuations and random events in historical data, without actually extracting patterns that can continue to work ov

Guys, Jacket (leather jacket) has hit 2m, and its market cap is now 2.22 million.
This afternoon, I called it at 980k and said hitting 2m would be easy. It got there in less than an hour, more than doubling.
The “save Old Huang” narrative is just that strong. Old Huang’s leather jacket, He Yi getting involved, and an Nvidia token liquidity pool—put these together, and it’s hard not to go up.
Those who got in at 980k, enjoying the gains? You can take your principal out first and keep holding the rest with profits.
CA: 0xb82535e74b03ffe4910efea1c759b6bbbf0a7777
‍#黄仁勋因婚外情致歉，英伟达启动独立调查
$Jacket#黄仁勋

Jensen Huang is being pressed by Congress to testify, and Singapore is unavoidable: Nvidia booked $23.7 billion in revenue in Singapore in fiscal 2025, nearly one-fifth of its total; later, Singapore disappeared from its financial reports🧐
I went through Nvidia’s two most recent annual reports.
The one from February 2025 was very clear: customers were invoiced in Singapore, while nearly all the goods were shipped elsewhere; less than 2% were actually delivered to Singapore.
Revenue booked in Singapore rose from $2.3 billion to $6.8 billion and then $23.7 billion over three years.
Starting wit

$AKE What the hell are you scared of, guys? Short the top two now. In this market, any altcoin that dares to pump is just making a last-ditch effort—it won’t last a day. Short now and you’re guaranteed to profit. $AKE