Many people ask me how I have survived so long in the crypto market and still maintain steady growth. My answer is simple: I never rely on predicting the market, but instead focus on risk management.

Having traded for five years, my account has grown from $3,000 to eight figures, and I have never experienced a margin call. This is not luck, nor is it because I have access to secret indicators or insider information. It’s because I have established a systematic trading framework—treating myself as a market participant, not a prophet.

My core approach can be summarized in three dimensions:

**First, taking profits early and compound interest cycles**

The very first second I open a position, I set stop-loss and take-profit orders simultaneously. I give myself no chance to say "let’s see." Once profits reach 10%, I immediately withdraw half of the gains. The remaining position is treated as a "free chip" given by the market, allowing it to continue running.

This may sound conservative, but it is actually very effective. Over these five years, I have successfully cashed out more than 30 times using this method. The key is to stay alive, not to make a huge one-time profit. Staying alive means having opportunities.

**Second, multi-timeframe confirmation and layered position building**

I don’t focus on just one timeframe. The daily chart determines whether I participate in a particular asset, the 4-hour chart is used to judge the overall trend direction, and the 15-minute chart is where I execute precise entries.

I usually open two positions simultaneously. Each position’s stop-loss is controlled within 1.5%, but the profit target is set at at least 5 times the risk. With this setup, even if one stop-loss is triggered, the gains from the other position can cover it.

For example, during the 2022 LUNA collapse, the market was chaotic. I took both long and short positions on the same day, and as a result, my account grew by 40% within 24 hours. It wasn’t because I predicted perfectly, but because this multi-timeframe framework gave me a mechanism to profit in both directions.

**Third, the power of high reward-to-risk ratio and small stop-losses**

I don’t pursue a high win rate. My trading win rate is only 38%, but the key is that my reward-to-risk ratio is 4.8:1. This means that for every dollar at risk, my target profit is $4.80. Even if 60% of my trades fail, the remaining profitable trades are enough to cover all losses and generate profit.

Stop-loss is not a sign of failure, but the cost of entry. When I realize I’ve made a wrong judgment, I cut losses immediately. As long as I am still in the market, the next opportunity will come.

**Three iron rules of capital management**

I divide my account into 10 parts, and each trade uses at most one part of the capital. I also keep no more than 3 positions open at the same time. This way, even if I experience consecutive losses, it won’t cause fatal damage to my account.

If I suffer two consecutive losses, I stop trading immediately, do something else to cool down, and never revenge trade. Emotional trading is the number one killer of accounts.

When my account doubles, I withdraw 20% of the profits into safe assets like US bonds or gold. This not only locks in gains but also allows me to sleep better during a bear market.

The crypto market doesn’t fear your mistakes; it fears that after a margin call, you can never get back up. Stick to these three points, and the exchange will shift from being a place that harvests you into a tool that works for you.