Many people in the crypto circle often fall into the cycle of "rising when doing long, falling when doing short," and the root cause is simple—placing orders based on feelings without a system. I started participating in this market at age 27, and now my capital has reached eight figures. It’s definitely not luck, but a validated trading framework. Today, I want to break down and explain this method.

**Capital Management is the First Line of Defense**

Divide your total funds into 5 parts, and only use one part for each entry. What are the benefits of this approach? Even if you make 5 consecutive wrong judgments, your total loss remains within an acceptable range. The specific operation is: set a single stop-loss at 10 points to keep losses within 2% of total capital; take profit should also be set at over 10 points. As long as the direction is correct, there’s no need to worry about being trapped by a reverse move. How robust is this system? In the worst case, you lose 10%, but you won’t go all-in on a single trade.

**Trend Judgment Determines Win or Loss**

To improve your win rate, the key word is "follow the trend." In a downtrend, rebounds are mostly traps, so don’t rush to buy the dip; in an uptrend, pullbacks are real opportunities. Buying low is much safer than chasing high. For coins that surge briefly—whether mainstream or altcoins—after a high stagnation, 90% will decline. There’s no need to gamble on it.

**Indicators Must Be Precise and Accurate**

The logic of using MACD is straightforward: a golden cross below the zero line and breaking above zero is a signal to enter; a death cross above the zero line should prompt immediate reduction of positions. But indicators are just references; volume and price are the core—notice volume surges at low levels and breakouts, which must be closely watched. If volume surges at high levels but the price stagnates, it’s time to exit decisively. The most stable approach is to only trade coins in an uptrend. Check if the 3-day, 30-day, 84-day, and 120-day moving averages are all trending upward, representing short-term, medium-term, main upward wave, and long-term opportunities. When all four lines turn upward, the chances of success are highest.

**Execution Power Determines Results**

You must review your trades weekly, verifying whether the logic behind your holdings still holds, and whether the weekly K-line trend deviates from expectations. Adjust as needed. If you’re unsure about the direction, it’s better to strictly follow this framework. Being disciplined and steady is much more reliable than blindly following the crowd.