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After struggling in the crypto market for a few years, I have summarized a set of risk-controlled trading strategies, which have been tested to maintain a win rate of over 90%. This is not some profound theory, but a few hard rules - yet they can be lifesaving. Growing the principal from 100,000 to 5 million relies on these seemingly simple principles that few can stick to.
**Rule 1: Don't put all your eggs in one basket**
Divide the principal into 5 parts, moving at most 1 part each time. Set a stop-loss line at 10%. Even if the direction is wrong, the maximum loss per trade is 2% of the total capital. If you are wrong 5 times, you will lose 10%, significantly reducing the probability of a crash. Conversely, if you are right, set the take-profit at over 10%, and the risk-reward ratio will naturally favor you. This combination of position sizing and stop-loss is the first line of defense against account liquidation.
**Article 2: Don't go against the trend**
In simple terms, it's just two words - go with the flow. A rebound during a downturn is mostly a trap to lure in buyers, while a pullback during an uptrend is actually an opportunity to get in. Many people like to catch the bottom, thinking that after a significant drop, a rebound is due, but there are too many stories in the crypto market of people catching the bottom halfway up the mountain. Following the trend and finding low points to position in the correct direction will, over the long term, give you a much higher win rate compared to bottom catchers.
**Article 3: The Surging Currency Trap**
Whether mainstream coins or altcoins, it is rare to see those that can continuously pull off several waves of major uptrends. After a short-term surge, the cost of further increases is extremely high; the big players are not that foolish. A high-level sideways market often means that it can no longer be driven up, and the next step is likely to be a market crash. But what retail investors love to do most is to chase high prices and "take a gamble," only to end up standing guard until the end of time. Remember, a soaring coin = high-risk zone, keep your distance.
**Article 4: Using MACD to Look at Signals**
In technical indicators, I trust MACD the most. When the DIF and DEA form a golden cross below the 0 axis and then break upward through the 0 axis, this is a relatively stable entry signal; when there is a death cross above the 0 axis and it continues downward, it's time to run, don't hold on to false hopes. Operating according to the signals can reduce a lot of emotional trading, preventing one from losing their footing due to greed or panic.
**Article 5: Never average down on losses**
Adding positions is the biggest trap for retail investors: they add when losing, continue to lose after adding, and eventually get deeply trapped to the point of questioning life. The iron rule that must be ingrained in your DNA is: **never add positions when losing, only scale up when in profit**. Let the winning trades grow larger, rather than digging a deeper hole for the losing ones.
**Article 6: Daily Review is Required**
After the market closes, one must do one thing: review. Check if there are any changes in the position logic, see if the weekly chart confirms that the overall direction is still in line with expectations, and whether the trend has shifted. Adjust strategies based on the review results to continuously correct mistakes, allowing your trading system to mature and avoid stepping into the same trap repeatedly.
This method is nothing fancy; the core is to control risks, follow trends, and strictly adhere to discipline. The crypto market is not short of opportunities, but what it lacks are those who can survive until the next bull market.