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When it comes to trading contracts, I’ve taken quite a few wrong turns.
In the beginning, my screen was filled with all sorts of indicators—MACD crosses, RSI overbought/oversold, Bollinger Bands opening and closing. It all looked professional, but in reality, it was just a mess. I’d make over a dozen trades a day, running off with quick profits out of fear of giving them back, and stubbornly holding onto losses hoping for a rebound. I stared at the charts until my eyes ached late into the night, but my account balance only kept shrinking.
The turning point came after talking with a few seasoned traders. They all agreed: to make money trading contracts in the crypto world, don’t get into a battle with yourself, and don’t try to fight the market.
Most people lose because they “want to catch every single move.” Chasing pumps and dumps, buying bottoms and selling tops, jumping in and out constantly—only to get slapped around by volatility. We started doing the opposite—no trying to pick tops and bottoms, no chasing the hype, no looking at complicated charts. Just spend ten minutes a day checking in, then move on with life.
Here’s how I do it, broken down to a few key points:
**Only keep two indicator lines**
EMA21 and EMA55—the short one for short-term trends, the long one for mid-term direction. When the 21 crosses above the 55 (golden cross), go long; when the 21 drops below the 55 (death cross), go short. Turn off all other indicators—out of sight, out of mind.
**Only watch the 4-hour candles**
Forget about 15-minute or 1-hour charts—they’re all just noise. Wait for the 4-hour candle to close: if EMA21 crosses above 55 and closes bullish, open a long; if it crosses below and closes bearish, open a short. Sideways chop? Just sit it out. It’s better to miss a trade than to force one.
**Never hesitate on stop-losses**
Set your stop-loss at the high or low of the previous 4-hour candle, and keep each loss within 5% of your capital. I used to hold onto losers with a 20% drawdown, telling myself it’d bounce back. Now, as soon as my stop hits, I’m out. My trading has gotten much steadier since.
**Add to positions with rhythm**
Start with just 5% of your capital as the initial position. If you’re up 5%, add another 5%. Keep adding until the EMA signals a reversal. This way, you lock in your base profit and ride the trend for more.
Honestly, nobody can guarantee a win on every trade. Missing a move is way better than jumping in impulsively and getting trapped. One or two trades a day is plenty—more than that is just asking for trouble.
Trust your strategy, stick to your discipline. It’s far more effective than staring at the charts in a daze.