After trying various complex strategies, I finally understand— the simplest and most straightforward rules are often the most resilient. Sharing a contract trading system I’ve used for two years; while I can't claim to win every time, it can help you avoid most deadly traps.

**Level 1: Choosing the Right Target—Active Coins vs. Obscure Coins**

First, recognize a reality: not all coins are worth betting on. My screening criteria are straightforward:

Only consider coins that have risen on the top gainers list in the past 11 days, indicating market enthusiasm is still present. Conversely, those that have been sideways for a long time? Skip them—wasting time and risking becoming a bagholder.

Another taboo is coins that have been declining for more than 3 days. Bottom-fishing in a downtrend is essentially catching the "flying knives" others are throwing away. Opportunities appear daily, so there's no need to show off in obvious weakness. Capital is limited; investing in the right direction is the best strategy.

**Level 2: Monthly Chart Direction—MACD Golden Cross as a Signal to Start**

Daily charts can be misleading—rebound one moment, retrace the next—easy to get shaken out. I use the monthly MACD golden cross to judge the medium-term trend—this signal is significantly more reliable.

Key point: When the monthly MACD forms a golden cross above the zero line, it indicates that the bullish momentum has begun to establish. If volume is also gradually expanding at this point, the trend’s stability is even more assured. This is a green light for us to consider deploying.

**Level 3: Precise Entry on the Daily Chart—The 60-Day Moving Average as the Best Entry Point**

Even if the overall trend is confirmed, don’t chase high greedily. My entry logic is to wait for the price to pull back near the 60-day moving average (error within 3%), which offers the most comfortable risk-reward ratio.

Simultaneously observe volume: if the volume on that day exceeds the average of the previous three days by more than 50%, it indicates genuine support rather than a false move. Entering at this point maximizes safety margins.

**Level 4: Phased Exit—Let Profits Run, but Beware Excessive Greed**

Entering is easy; exiting tests wisdom. My profit-taking logic involves multiple stages:

When floating profit reaches 30%, reduce one-third of the position—locking in some gains and easing psychological pressure. When gains reach 50%, close another third, and set a trailing stop-loss to follow the trend for the remaining position.

The strictest rule: if the next day’s closing price falls below the 60-day moving average, do not gamble on a rebound—close all positions immediately. Illusions and luck are the main reasons for account shrinkage.

**Implementation Level: Technicals are superficial; human nature is the core**

The hardest part of this system isn’t judgment but action: selling too early causes regret, but as long as the trend isn’t broken, you can re-enter. Don’t overthink. The real pitfalls often come from hesitation during losses—being soft on stop-loss leads small losses to become big ones.

Market opportunities are continuous; the key is to survive long enough to catch the next wave. Protecting your principal is essentially protecting your right to keep participating.