Many people in the crypto space often fall into the traps of blind following or overtrading when doing short-term trading. Today, I want to share a proven trading framework based on practical experience. The core idea is to rely on objective technical signals and use four steps to build a relatively stable trading system.

The starting point of this method is simple: begin with 50,000 yuan of capital, and over two years of short-term practice, accumulate to a million-level portfolio. The key is not about making a big profit in one shot, but about following the same rules for every trade to let probabilities work in your favor.

**Step 1: Precise Coin Selection**
Open the daily candlestick chart and filter only coins that show a MACD golden cross. An important point here: prioritize those where the golden cross occurs above the zero line, as this is the highest probability entry condition. This filtering significantly reduces subsequent risks because you have already eliminated many weak coins at the source.

**Step 2: Confirm Entry Timing**
Switch to the daily chart and focus on a moving average—either the 20-day or adjusted according to your trading style. The rule is straightforward: hold or add to your position when the price is above the moving average; exit immediately if the price falls below it. This line acts like a watershed—above is a strong trend zone, below is a danger zone.

**Step 3: Position Management and Profit Taking**
After buying, observe two indicators: price trend and volume performance.

When the price breaks above the moving average and volume also stabilizes above it, it’s a signal to fully enter the position. This indicates that both price and volume confirm the breakout’s validity.

The profit-taking logic is staged: sell 1/3 of the position when gains exceed 40% to lock in profits; if gains continue beyond 80%, sell another 1/3; the remaining 1/3 should have a strict stop-loss—if the price falls below the moving average, close all remaining positions. This design allows trend-following profits while enabling timely stop-losses during reversals.

**Step 4: Enforce Strict Stop-Loss**
This is the moat of the entire system. The moving average is not only the entry criterion but also the critical exit line. If the price unexpectedly falls below the moving average on the second trading day, regardless of fundamentals or how optimistic you are about the coin, you must execute a full exit. Emotions and luck are the biggest enemies in trading.

The good news is that, with strict coin selection and entry conditions, the probability of falling below the moving average is relatively low. But if it does happen, it indicates a trend change. The most prudent action then is to cut losses and exit. Once the price stabilizes above the moving average again, that line becomes a new buy point.

**Why is this framework effective?**
Its logic is simple but not simplistic. MACD golden cross indicates momentum initiation; a golden cross above zero signifies sufficient strength; the moving average indicates the medium-term trend direction; volume reflects participation; staged profit-taking demonstrates cautious risk management. Each component has its reason for existence.

Ultimately, whether you profit depends on whether you can strictly follow these four steps like a machine. No personal judgment, no being swayed by short-term fluctuations—let the rules make the decisions. The benefit of this approach is that it is reproducible and quantifiable, not based on feelings or luck.