After years of navigating the crypto space, I’ve found that consistently profitable traders are rarely relying on luck, but rather on a complete system. Today, I want to break down how this system is built.

First, let’s talk about capital management, which is the foundation of the entire trading framework. Divide your available funds into 5 parts, and only invest one-fifth in each trade. The advantage of this approach is that—missing once only costs you 2% of your total capital. Set a stop-loss at 10 points; even if you miss 5 times in a row, your total loss is only 10%. Conversely, once your judgment is correct, set take-profit at more than 10 points, and your return rate immediately increases. Operating this way over the long term, your win-loss ratio will naturally tilt in your favor.

With a risk management framework in place, the next step is how to improve your win rate. Here, you only need to focus on one core principle—trading with the trend. Every rebound in a downtrend is a trap to induce buying, while every pullback in an uptrend could be the golden opportunity. Compared to blindly bottom-fishing, the logic of buying low and selling high is much clearer.

Regarding coin selection, avoid a key pitfall: stay away from tokens that have experienced short-term explosive growth. Whether mainstream or altcoins, very few coins can sustain multiple major upward waves. After a short-term surge, continuing to rise becomes much harder, and when they stagnate at high levels, subsequent momentum weakens, leading to a decline. It seems simple, but most retail traders still want to gamble on it, and that’s where they often get trapped.

On the technical side, MACD is a useful reference. When DIF and DEA form a golden cross below the zero line and break above zero, it’s a relatively safe entry signal. Conversely, when MACD forms a death cross above the zero line and moves downward, it’s time to consider reducing your position.

Here, I want to highlight a common misconception—averaging down. Many retail traders get caught in the cycle of “buying more as they lose, losing even more,” which leads to disaster. Averaging down is essentially a psychological reaction to losses, but it can push you into deeper trouble. The correct approach is the opposite: do not add to your position when losing; only consider increasing when in profit. Although this seems simple, executing it requires strong self-discipline.

Volume cannot be ignored either; it’s key to judging genuine demand. When the price consolidates at a low level and breaks out with increased volume, pay attention. When volume surges at a high level but the price stagnates, you must decisively exit. These are often signals of a trend reversal.

In choosing trading directions, focus only on coins in an uptrend for maximum efficiency. The 3-day moving average turning upward is a short-term signal; the 30-day moving average turning upward indicates a medium-term uptrend; the 84-day and 120-day moving averages turning upward correspond to major upward waves and long-term trends, respectively. Combining different cycle moving averages helps you quickly assess which phase of the market you’re in.

Finally, review every trade afterward. Check whether your logic for holding the coin still holds, whether the weekly K-line trend matches your expectations, and whether there are signs of a trend reversal. Regularly adjusting your strategy allows you to stay flexible amid market changes.

The market is always here. Using a systematic mindset to view each opportunity enables you to steadily find your direction amid volatility.