Truly profitable hunters never follow the herd blindly; instead, they stay ahead on the path that capital must pass through.

Last week, a fellow shared his trading record: using a weekly switch strategy, he captured the entire main upward wave with RNDR and AR, turning a 50,000 USD principal into 1 million USD. This is not luck; it reflects a deep understanding of sector rotation.

Excess returns in a bull market never come from chasing every skyrocketing coin but from understanding the rhythm of capital rotation—like tides rising and falling, with different sectors starting up in sequence. I call this approach the "Cycle Rotation Sniping Method," with a simple core logic: avoid guessing the top or bottom of individual coins, focus on the pulse of capital, and pre-position in sectors about to start, earning compound gains through patience and discipline.

**Step 1: Weekly Breakout, Lock in the Main Uptrend**

Open your trading platform’s sector view, and every Sunday, spend 15 minutes checking which sector leaders’ weekly closing prices are hitting 20-week highs. If more than 30% of the leaders meet this criterion, it indicates that big funds are concentrating on a particular sector—this is your main uptrend sector (last year's Q4 AI sector was such an opportunity). The strategy is conservative: allocate 40% of your funds to 1-2 stable leaders. Don’t chase the coins that are surging wildly—that’s the rhythm of absorbing new positions.

**Step 2: Use the Fear & Greed Index to Find Rotation Gaps**

Once the main uptrend sector’s profits are solid enough, and the Fear & Greed Index continues to break above 80 (extreme greed zone), it’s time to take profits in batches—protect your principal and stop adding positions. During this window, also monitor adjacent sectors that haven’t yet started but have solid fundamentals. Capital flows like water: it always moves from hot, overbought areas to logically sound new sectors.

**Step 3: Capture Sector Rotation and Position for Rebound Opportunities**

Sector rotation follows patterns: first the leader rises, then the second and third, and finally potential coins within the ecosystem. When the leader coins are about to plateau or slightly retrace, it’s a good opportunity to buy the dip—find protocols ranked in the top three by TVL within that ecosystem but whose prices haven’t yet surged. Use the 20%-30% profit from previous trades to bottom-fish. This way, you can catch the rebound while keeping risk tightly controlled.

**Step 4: Watch Stablecoin Market Cap Ratio for Warning Signs**

A key indicator is the total market cap of stablecoins as a percentage of the total crypto market cap. When this ratio starts declining from a high level, it indicates that the market funds have gone all-in, and the incremental inflow is nearly exhausted—sector rotation is nearing its end. When you sense this signal, shift your non-BTC/ETH positions into stablecoins and raise your take-profit levels—don’t chase the last wave.

**Step 5: Profit Consolidation and Preparing for the Next Cycle**

When the market is so euphoric that sectors are being traded wildly on a daily basis, it usually signals a stage peak. The strategy is to gradually convert non-BTC/ETH holdings into stablecoins over three weeks, entering a hibernation period for observation and learning. Study narratives that haven’t yet been fully explored, and keep an eye on the movements of high-quality teams. Cash and knowledge are the real ammunition for the next cycle.

The brilliance of this method lies in elevating the perspective from individual coins to entire sectors, and then to the cycle level. Use rules to counteract the instinct to chase gains, cultivating true patience.

Markets fluctuate daily, but those who protect their principal and stay true to their initial purpose can always stand firm when the next cycle arrives. Navigating bull and bear markets with market rules is more powerful than anything else.