After seven years of grinding in the cryptocurrency market, I grew my initial capital of 30,000 to over 20 million. Many people think it’s luck? In reality, it’s all thanks to a trading system that’s been proven by the market. I once mentored a student who doubled his funds in three months using this method. Today, I’m going to break down the core logic for you—save this and digest it slowly.

**First, let’s talk about capital management**—I’m used to splitting my principal into 5 parts, and only using one part at a time. The stop loss is strictly set at 10%, which means the most I can lose on a single trade is 2% of total funds. Even if I make 5 consecutive mistakes, the total loss is just about 10%, which won’t hurt my base. On the flip side, when I’m on the right side of the trade, I always aim for at least a 10% profit margin. With this risk-reward ratio, it’s hard to get stuck.

**You can’t fight the trend.** Most rebounds in a downtrend are bull traps; real opportunities are hidden in pullbacks during an uptrend. Instead of trying to bottom-fish, just follow the trend—the win rate is much higher.

Here’s a pitfall to watch out for: never touch coins that have surged in the short term, whether they’re blue chips or small caps. The odds of them continuing to rally are tiny. Most will consolidate at the top for a bit before turning down. Never gamble by trying to catch these.

**On technical indicators**, MACD is my go-to tool. A golden cross below the zero line followed by a breakout above zero is a relatively reliable signal. If there’s a death cross above the zero line, cut your position decisively.

One counterintuitive rule: **never add to a losing position**. Many retail traders average down and only dig themselves deeper. The right approach is to add only when you’re already profitable—burn this into your brain.

**Volume and price action are key**—keep a close eye when there’s a sudden surge in volume after a period of low consolidation; if there’s heavy volume at the top but price isn’t rising, get out quickly.

**Here’s how I use moving averages**: the 3-day MA for short-term opportunities, 30-day MA for mid-term swings, the 84-day MA often marks the main rally, and the 120-day MA is good for long-term positions. Each time frame requires a different approach—don’t mix them up.

One last point that’s often overlooked: **review every trade after it’s closed**. Check if your holding logic has changed, look at the weekly K-line to confirm the trend. If anything looks off, adjust your strategy immediately.

You need a systematic approach to trading if you want to survive and earn consistently in this market.