I started in 2017 with an initial capital of $5,000. Many people around me have blown up their accounts in contracts—some got liquidated, and some even lost their houses. But my account curve has been steadily upward, with a drawdown never exceeding 8%.

This is not because I have insider information, nor do I rely on airdrops or some secret K-line techniques. To be honest, I treat the trading market like a gambling machine, and I see myself as the house.

**The first key point: Lock in profits and add an insurance to returns**

When I open a position, I set both take profit and stop loss simultaneously. Once the profit reaches 10% of the principal, I immediately withdraw half into a cold wallet. The remaining profit is used to continue rolling the position. What are the benefits of this approach? If the market continues to rise, I can enjoy compound interest; if it reverses, I only lose at most half of the floating gains, ensuring the principal remains safe.

Over five years, I have taken profits 37 times. The largest single withdrawal was $180,000 in one week. At that time, the exchange’s customer service even verified my account via video, suspecting money laundering. What does this tell us? That if withdrawal frequency and amounts are too outrageous, exchanges will conduct proactive reviews. But this also proves the effectiveness of the strategy.

**The second key point: Displaced position building and multi-cycle resonance to improve probability**

I analyze three timeframes simultaneously: daily, 4-hour, and 15-minute. The daily chart is used to determine the main trend, the 4-hour to define the trading range, and the 15-minute for precise entry timing.

For the same coin, I open two positions at the same time. Position A is for chasing longs at key breakout points, with stop loss set at the previous low on the daily chart. Position B is for shorting in the overbought zone on the 4-hour chart using limit orders. Both stop losses are controlled within 1.5% of the principal, but profit targets are set at over 5 times.

Why do I operate this way? Because most of the market time (about 80%) is in consolidation. Others’ liquidation orders often get wiped out in such oscillations, while my dual-position method profits from the fluctuations in the middle.

The most convincing example was during the 2022 LUNA project crash. Within 24 hours, the price plunged 90%. Both my long and short positions took profits, and the account gained 42% in a single day. This is not luck; it’s the power of a systematic approach.

**The third key point: Use small stop losses as entry tickets to capture larger trend opportunities**

I view stop losses as the cost of entry. Each time risking only 1.5% to gain a chance to sit in the house. When the market is favorable, I move the take profit to maximize gains; when it reverses, I exit promptly.

What is the result? My win rate is actually only 38%. But the key is the ratio of profit to loss—each winning trade earns an average of $4.8, while each losing trade loses about $1. This results in an expected value of +1.9%. That is, for every $1 risked, I can expect to earn $1.90 in the long run. If I can catch two clear trending moves in a year, my returns can surpass many bank savings products.

**Three practical tips to keep in mind**

First, divide your account into 10 parts; use at most 1 part per trade, and hold no more than 3 parts at once. This is the bottom line of capital management.

Second, stop trading after two consecutive losses. Go to the gym, take a walk, clear your mind. Never open a “revenge trade,” as that’s a direct prelude to liquidation.

Third, once your account doubles, withdraw 20% of the profits to buy US bonds or gold. Although this may seem conservative, you’ll thank yourself for the caution when a bear market arrives.

These methods sound simple, but executing them is counterintuitive. The market doesn’t fear your wrong judgment; it fears you blowing up and never recovering. Master this mindset, and you’ll find trading isn’t so mysterious anymore.