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Seven years ago, I got on board with 800, and now the market capitalization of my account has exceeded 30 million. It's not bragging; this number is backed by a trading logic that has been repeatedly validated by the market.
Last year I took on a student, and using this method, the funds doubled in just three months. Today, I will simply break down the core strategy and explain it thoroughly.
First, let's talk about position size - this is the key. My money is always divided into five parts, and I only move one part at a time. The stop loss is set rigidly at 10 points, so even if I make a mistake, I can lose at most 2% of the total funds in a single trade. If I get it wrong five times in a row? That would only be a 10% loss, so I won't flip the car. The profit target is set above 10 points, and with this approach, it's hard to get deeply trapped.
The key to increasing your win rate is nothing more than two words: go with the trend.
In a downtrend, most rebounds are traps; don't touch them. A pullback in an uptrend is a real opportunity; buying low is a hundred times more reliable than trying to catch the bottom. As for coins that surge in the short term, whether mainstream or altcoins, I don't pay attention to any of them. A decline after a high-level consolidation is a hard rule; a gambler's mentality is not to be encouraged.
I only focus on three things in the technical aspect:
The MACD golden cross breaks above the 0 axis, which is a stable get on board signal; when a death cross appears above the 0 axis, reduce positions immediately, without hesitation.
Trading volume is the barometer. A breakout with high volume at a low level can be followed, while a stagnation with high volume at a high level must be avoided, no discussion.
The moving average system is the core. Only trade varieties that are moving upward on the moving averages - the 3-day line for short-term fluctuations, the 30-day line to determine the medium-term direction, the 84-day line to catch the main upward wave, and the 120-day line to define the long-term trend.
The last two iron rules, engraved in my mind:
First, never average down when in loss. How many people fall into the vicious cycle of increasing their position as they incur more losses? If you are to add to your position, it must be when you are in profit; expanding gains is the right path.
Second, a review must be conducted after each trade. Compare with the position logic, check the weekly candlestick chart to verify the trend direction. If adjustments to the strategy are needed, make them; do not stubbornly hold on.
Most people are trapped in a cycle of losses, not because they are not trying hard, but because they lack a workable method. The market has daily fluctuations, and opportunities do not wait for anyone.
The more I look, the more I feel that those who really make money are the ones who keep quiet, and now those who come out to teach... you can figure it out.
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Position divided into five parts, stop loss at 2%, this framework is simply about living longer to earn more, no fancy tricks.
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What I admire the most is that follow-the-trend idea; in a fall, rebounds nine out of ten times are bull traps, really, those who have been trapped understand.
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I’ve tried the moving average system, but couldn’t stick with it; most people fail here, right?
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The more you lose, the more you do Margin Replenishment, that line hits home; how many people have ended their own lives this way?
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No matter how good the words sound, it’s all hindsight; when the real trend comes, anyone can tell a story.
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Catching the main rise on the 84 daily chart? Isn’t the 120 daily chart the true anchor? A bit confused.
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The habit of reviewing trades is indeed important, but most people give up after three days.
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I agree with going with the trend, but many people just can't do it, especially when they see the coin big pump.
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The moving average system is reliable, but shouldn't you consider the parameters based on the coin?
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I've suffered losses from Margin Replenishment; that feeling of it falling further the more you add is just terrible. I've learned my lesson now.
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It's easy to talk about reviewing trades, but very few actually stick to it; I'm one of those who flipped out among the few.
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You better hide that 30 million well; be careful this year's market doesn't bring you back to zero.
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Buying low is indeed more reliable than buying the dip, but the problem is distinguishing when it's low and when it's even lower.
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Only focusing on these three technical aspects? I feel like something's missing.
The point about Margin Replenishment is spot on; I've seen too many people keep increasing their investments the more they lose, and in the end, they lose everything.
The moving average system sounds refreshing, but I'm afraid when it comes to practice, people might forget everything in a moment of excitement.
"Go with the trend" sounds easy, but it's really tough to do; everyone wants to buy the dip...
Reviewing past trades is indeed a habit worth cultivating, but most people who lose money don't want to look at those Candlestick Charts at all.
Doubling in three months is amazing; that student must be very lucky...
The real challenge isn't knowing what to do, it's maintaining a stable mindset when facing losses.
This logic likely only suits those with some patience; those who are eager for quick gains simply can't wait.