These 10 Iron Laws Help You Transform from a Retail Investor to a Proven Trader

If you want to achieve steady profits in the crypto space—remember these 10 survival rules validated by the 2024 market👇

1-Underlying Architecture Determines Limits
Master order book depth analysis and liquidity management. Understand the smart contract security audit process. In 2024, a DeFi project was exposed due to a lightning DDoS vulnerability; traders familiar with Solidity code shorted the Token 2 hours in advance and gained 300% profit.

2-Systematic Decision-Making Mechanism
Establish a quantitative analysis framework including entry/stop-loss/take-profit to avoid herd mentality. Use ATR (Average True Range) to calculate reasonable position sizes. When the BTC volatility index (VIX) exceeds 35, keep single trade risk within 0.5% of capital.

3-Build a Professional Information Network
Join CTA strategy discussion groups to access institutional-grade research reports. Pay attention to large traders' movements in Bitfinex holdings reports.

4-Trading System Audit Standards
Backtest strategies monthly using Backtrader, focusing on Sharpe Ratio (>1.5) and maximum drawdown (<20%).

5-Risk-Reward Matching for Strategies

Futures Trading: Set a maximum leverage of 20x, use Bitfinex's Trailing Stop feature for dynamic stop-loss.

Quantitative Hedging: Use perpetual contracts and spot holdings to hedge, locking in 2-3% monthly returns.

Value Investing: Select coins with MVRV Ratio <0.8 and hold for 3 years.

7-100x Coin Screening Model
Establish a fundamental analysis framework:

Token economic model (inflation rate <3%)

Community governance structure (DAO voting participation rate >20%)

Technical iteration speed (quarterly updates >4 times)
In 2024, a project in the L2 track that met all the above conditions achieved a 280% annual increase.

8-Antifragility Training
Conduct weekly stress tests: simulate portfolio reactions during a single-day -15% BTC volatility. One trader trained to lower the VIX trigger threshold from 70 to 50, improving decision accuracy by 40%.

9-Scientific Management of Trading Psychology
Use heart rate variability (HRV) monitoring devices. When HRV <50ms, force a trading pause. A 2024 study shows professional traders' average HRV is 37% higher than that of ordinary investors.

10-Real-World Stress Testing Plan

Simulated Trading: Conduct 1,000 trades with virtual funds.

Small Capital: Use 1% of capital for high-frequency trading to validate strategies.

Live Trading: Increase positions gradually; after each Sharpe Ratio milestone (0.5/1.0/1.5), increase position size by 5%.

10-Career Development Path Planning
Set personal KPIs:

Year 1: Establish a complete trading system, Sharpe Ratio >1.0

Year 2: Achieve over 20% annualized return, maximum drawdown <15%

Year 3: Build a cross-asset portfolio (spot/contract/options), manage over 5 million in funds

In the B circle, a continuously evolving trading system combined with scientific capital management is the ultimate secret to navigating bull and bear markets. Follow me to get the latest on-chain data analysis tools for 2024 (such as Nansen whale tracking) to help you build a professional trading system!