Ten years of navigating the crypto world, I have gradually built up a fortune of over 50 million from being a complete novice. When it comes to the secret, it boils down to two words—stability. The core method I call the 50% position strategy, which yields an average monthly return of around 70%. I’ve shared this logic with a few apprentices, and some have doubled their holdings in just three months. Today, feeling a bit inspired, I decided to organize all these years of experience into a complete summary.

Funds should be diversified. My approach is to divide the principal into 5 parts, investing only 1/5 each time. Set stop-loss at 10 points, so a single loss only accounts for 2% of the total capital; set take-profit at more than 10 points. Calculate it—only if you make 5 wrong trades in a row will you lose 10% of your principal. This tolerance is more than enough.

Trade with the trend. The rebound during a decline is often a bull trap, and pullbacks during an uptrend are usually excellent low-entry opportunities. Compared to blindly catching the bottom, following the trend greatly increases success rates. Another key point—never touch coins that surge in short-term spikes. Whether mainstream coins or small tokens, only a few can go through several major upward waves. The difficulty of continuing upward after a short-term spike increases exponentially; high-level stagnation is a sign of impending decline. This logic is simple—don’t gamble on it.

On the indicator front, I trust MACD the most. When DIF and DEA form a golden cross below the zero line and break above zero, it’s a solid entry signal; when a death cross occurs above zero, reduce your position decisively. Keep a close eye on volume-price relationships—if the price consolidates at a low level and then breaks out with increased volume, it’s worth tracking; conversely, if volume surges at a high level but the price doesn’t rise, it’s time to exit.

The biggest pitfall in risk management is averaging down on losses. Many retail traders fall into this trap. Keep adding to losing positions is basically courting death. My strict rule is: never average down on a loss; only add when in profit.

Cycle resonance is also crucial. The 3-day moving average turning upward indicates short-term bullishness; the 30-day moving average turning upward signals medium-term opportunity; the 84-day turning point marks the start of a major upward wave; and the 120-day turning point signals a long-term bull market. Only trade coins in an uptrend, which maximizes success and saves time.

Finally, daily review is essential. Check whether the logic behind your holdings still holds, compare with weekly K-line trends for any deviations, and immediately adjust your strategy if the trend reverses. Over ten years, I’ve refined this methodology to become increasingly smooth and effective.