To earn stable returns from the crypto market, the key lies in fund management and disciplined execution. Recently, many investors have been exploring a relatively feasible trading approach, which is worth breaking down.
The core logic is actually simple: divide the principal equally into five parts, and only use one part for each trade. Suppose you have 10,000 yuan; then split it into five parts, using 2,000 yuan each time. What are the benefits of doing this? Controlled risk and stable mindset.
How exactly to operate? The first step is to select a coin and directly open a position at the current price. Then set two trigger conditions: if the price drops 10%, add to the position (invest another share); if the price rises 10%, take profit by reducing the position (sell one share). Repeat this cycle until all five parts of the principal are used up or fully cleared.
Why is this approach attractive? Suppose the coin price ultimately drops 40%, you will find that the previous add-on purchases significantly lower your average cost, allowing you to quickly recover once it rebounds. Even if the market moves unfavorably, unless there is an extreme crash (a decline of over 50%), your risk is well diversified after using all five parts of the principal.
In terms of expected returns, every 10% fluctuation can generate a trading opportunity. With a 20,000 yuan capital, a single operation can arbitrage about 2,000 yuan. Over a month, the higher the trading frequency and the larger the market volatility, the more substantial the accumulated gains.
Of course, there are pitfalls to avoid in practice. The 10% fluctuation range can sometimes be difficult to execute during certain periods, and funds may face idling or partial being trapped. The solution is not difficult—select mainstream coins with good liquidity and relatively moderate volatility to implement this logic, and put idle funds into financial channels to earn additional income.
The core advantage of this method is that it turns psychological betting into a mathematical problem. No need to predict market direction, just execute according to the set rules mechanically. For traders looking to find a rhythm in the crypto market, this approach indeed provides a verifiable framework.
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AlgoAlchemist
· 2h ago
Sounds good, but is it really that easy to secure a 10% position in practice?
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DaoGovernanceOfficer
· 9h ago
*sigh* so basically grid trading with extra steps? the data suggests this is just DCA with a fixed-size rebalancing trigger, which—empirically speaking—works until it doesn't. where's the backtest? where are the KPIs? 🤓
Reply0
FastLeaver
· 10h ago
Basically, it's just grid trading with a different disguise. It sounds good, but how does it actually perform in practice?
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SchroedingerGas
· 10h ago
It sounds like a variant of the dollar-cost averaging method, but the 10% threshold is really hard to hit in the crypto world.
View OriginalReply0
ConsensusBot
· 10h ago
Sounds good, but there probably aren't many people who can actually stick to it.
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BearMarketSurvivor
· 10h ago
Sounds good, but a 10% fluctuation in a bear market is hardly achievable.
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EthMaximalist
· 10h ago
It sounds like a grid trading rebranded, but in practice, it still depends on market temperament.
To earn stable returns from the crypto market, the key lies in fund management and disciplined execution. Recently, many investors have been exploring a relatively feasible trading approach, which is worth breaking down.
The core logic is actually simple: divide the principal equally into five parts, and only use one part for each trade. Suppose you have 10,000 yuan; then split it into five parts, using 2,000 yuan each time. What are the benefits of doing this? Controlled risk and stable mindset.
How exactly to operate? The first step is to select a coin and directly open a position at the current price. Then set two trigger conditions: if the price drops 10%, add to the position (invest another share); if the price rises 10%, take profit by reducing the position (sell one share). Repeat this cycle until all five parts of the principal are used up or fully cleared.
Why is this approach attractive? Suppose the coin price ultimately drops 40%, you will find that the previous add-on purchases significantly lower your average cost, allowing you to quickly recover once it rebounds. Even if the market moves unfavorably, unless there is an extreme crash (a decline of over 50%), your risk is well diversified after using all five parts of the principal.
In terms of expected returns, every 10% fluctuation can generate a trading opportunity. With a 20,000 yuan capital, a single operation can arbitrage about 2,000 yuan. Over a month, the higher the trading frequency and the larger the market volatility, the more substantial the accumulated gains.
Of course, there are pitfalls to avoid in practice. The 10% fluctuation range can sometimes be difficult to execute during certain periods, and funds may face idling or partial being trapped. The solution is not difficult—select mainstream coins with good liquidity and relatively moderate volatility to implement this logic, and put idle funds into financial channels to earn additional income.
The core advantage of this method is that it turns psychological betting into a mathematical problem. No need to predict market direction, just execute according to the set rules mechanically. For traders looking to find a rhythm in the crypto market, this approach indeed provides a verifiable framework.