Having been involved in the crypto space for these years, I’ve realized one thing clearly—most people are just messing around when trading cryptocurrencies. They stare at the K-line every day, guessing ups and downs, and when the market swings wildly, their mentality collapses. The final outcome is usually one of two: either they give back all the profits they worked hard to earn, or they get liquidated and wiped out.

My approach is completely different. Since I started with 5000 USD in 2017, my account has been steadily growing without experiencing major drawdowns. It’s not luck or market predictions that I rely on, but a completely rigid yet effective trading system.

**First Key: Take Profits Off the Table First, Compound for Stability**

Set take-profit and stop-loss orders simultaneously for every trade—that’s the baseline. Once profits reach 10% of the principal, I immediately withdraw half of the profit to my account—this money is pure profit. The remaining profit continues to compound; when the market is favorable, I let it grow through compounding, and if the market reverses, I only lose the profits, while the principal remains untouched. This trick directly solves the vicious cycle in crypto trading where “it’s hard to make money but easy to lose it all.”

**Second Key: Coordinate Major and Minor Cycles, Precise Entry and Exit Points**

Use the larger cycle to determine the trend, and the smaller cycle to find buy and sell points. First, ensure the main direction is correct, then time your entry. Sometimes I develop two strategies for the same asset—one for long, one for short—both with stop-loss protections. I strictly control the risk of each trade, so even if the market oscillates back and forth during sideways movements, while others lose heavily, I can stay calm and wait for the results.

**Third Key: Stop-Loss Is Not Failure, It’s a Trading Cost**

I don’t pursue a high win rate; I focus on the risk-reward ratio. Each loss is kept small, and once I make a profit, I try to let it run longer. Over time, the mathematical expectation remains positive, and the account naturally grows steadily.

Besides these three core rules, there are three discipline measures I must follow: funds must be managed with position sizing, never go all-in on a single trade; if I experience consecutive losses, I stop immediately to review and never stubbornly hold on; when the account doubles, I withdraw a portion as defensive capital.

$FHE Remember the most important rule: the market doesn’t fear you making mistakes, it fears you losing all your principal at once. Treat trading as a game of probabilities, stick to your rules, control your risk thresholds, and the market will work for you.