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Entering the market in 2017 with an initial capital of 2000U, the account has steadily grown over 8 years, with a maximum drawdown controlled below 8%, and has never experienced a margin call. Behind this achievement is not luck, but three market-tested trading strategies.
**Strategy 1: Take Profit and Stop Loss + Regular Withdrawals**
Every trade must have a take profit and stop loss set. Once profits reach 10% of the principal, 50% of the profit is withdrawn to a cold wallet, and the remaining is used as new principal for continued trading. The benefit of this approach is that risk remains controllable—even if the market reverses later, at most half of the profits are given back.
This method has been adhered to for 5 years, with a total of 37 withdrawals. The largest single weekly withdrawal was 180,000U, and the funds were large enough that the exchange actively verified their source. A stable profit curve is the foundation for long-term profitability.
**Strategy 2: Multi-Cycle Dislocated Positioning**
Monitor three timeframes simultaneously: daily, 4-hour, and 15-minute—using the daily to determine the main trend, the 4-hour to identify volatility ranges, and the 15-minute as an entry signal. For the same coin, a dual-order strategy is employed: one order chasing long at key levels (stop loss set at the previous low on the daily), and another placing a short in overbought zones.
Both orders' stop losses are strictly controlled below 1.5%, with take profits set at over 5 times. During the 90% drop of LUNA in 2022, this parallel long-short structure allowed a 42% profit in a single day—while others faced liquidation, I was picking up bargains at the lows.
**Strategy 3: Use 1.5% Small Stop Loss to Trend Trade**
Review of past trades shows a win rate of only 38%. But the key is that the profit-to-loss ratio reaches 4.8:1—earning far more than losing. The method is simple: set a small 1.5% stop loss to limit risk per trade, dynamically move the take profit as the market improves to maximize profits, and exit decisively when the market weakens. From a mathematical expectation perspective, this combination remains stably positive.
**Three Ironclad Trading Rules**
Divide funds into 10 parts for management, with each position occupying at most 1 part, and total holdings not exceeding 3 parts; stop trading immediately after two consecutive losses, go to the gym or do other activities, never chase trades; whenever the account doubles, withdraw 20% to allocate to stable assets like US bonds or gold, reserving a safety cushion for bear markets.
The biggest risk in trading is not making mistakes, but a margin call that you can't recover from. Controlling risk at the bottom line allows the power of compound interest and the passage of time to naturally manifest.