(This is purely personal insight and does not constitute investment advice)
I have seen too many people rush into the cryptocurrency market with dreams of getting rich overnight, only to become the 'fuel' for exchanges. I started in 2017 with $5000 to test the waters, and now my account curve is barely manageable. The core strategy relies on a set of counterintuitive, clumsy methods—not pursuing a high win rate, not being superstitious about candlestick patterns, but treating trading like running a casino: as long as the probabilities and risk-reward ratios are in my favor, short-term wins and losses don't faze me.
Here are three key strategies that have helped me survive, suitable for those who don't want to face liquidation, dislike watching the market, and need a good night's sleep.
First move: Locking in profits with compound interest - first take profits, then use those profits to gamble.
Operations: Immediately set stop loss and take profit orders as soon as each position is opened. After profits exceed 10%, forcibly withdraw 50% of the profits to a cold wallet, and only then continue rolling over the remaining.
Why is it effective?
The volatility in the crypto market is too large, and not withdrawing profits is like being rich on paper. Regularly withdrawing profits is equivalent to continuously reducing the risk to the principal; even if there are operational mistakes later, it won’t harm the initial principal.
I have recorded 37 withdrawals in 5 years, with a single-week record of 180,000U. A cold wallet is like a 'safety cushion'; with a stable mindset, operations won’t become distorted.
Second move: Misaligned positioning - opening both long and short positions in the same cryptocurrency.
Operations:
Look at the big cycles (daily/weekly) to determine direction; for instance, if the big trend is bullish, there may be a short-term correction.
Open both long and short positions simultaneously on an hourly basis, with a stop loss set at ≤1.5% and a profit target ≥5 times the risk-reward ratio.
Practical case:
In a volatile market, one side will always make money while the other incurs small losses, effectively using stop-loss fees to buy 'dual insurance'.
On the day of the LUNA crash last year, when the market was jumping wildly, I relied on this strategy to increase my account by 42% in a single day - it wasn't that I could predict the crash, but that the strategy itself could navigate through the volatility.
Third move: Stop loss equals huge profits - a low win rate is fine, as the risk-reward ratio is king.
The contrary truth: My win rate is only 38%, but I can earn in the long term because the risk-reward ratio is pulled to 4.8:1 (one win offsets five small losses). For every 1 dollar of risk taken, I earn an average of 1.9 dollars back.
Specific method:
Stop loss must not exceed 1.5% of the principal, and the profit target should be set at least 5% or more.
For example, opening a position of 1000U with a stop loss of 15U and a profit target of 75U+. Cut losses quickly and take profits aggressively.
✔ Iron rules are more important than strategies.
Funds are divided into 10 parts: a single position can hold a maximum of 1 part, with total holdings not exceeding 3 parts. Never go all-in to avoid a complete collapse in one round.
If you lose 2 consecutive trades, shut down immediately: when someone is heated, they will engage in 'revenge trading', and stopping is more important than stubbornly holding on.
Doubling must withdraw: every time the account doubles, forcibly withdraw 20% to buy stable assets (like government bonds or BTC). Retaining profits is the real way to make money.
Lastly, a couple of words
What people fear most in the crypto world is not being wrong in direction, but a single liquidation that leads to total exit. My thought process is essentially to use rules to combat human nature: exchanges want us to trade frequently and leverage up, while what I want to do is to make myself the 'casino boss' - not betting on single outcomes, but making money on long-term probabilities.
If you are also tired of chasing highs and lows, why not start by trying small positions? Remember: slow is fast, and surviving gives you a chance.
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