After being liquidated 3 times and losing 80,000 yuan, I finally understood one thing: crypto contracts aren’t a game for the “smart,” but an engineering project for the “disciplined.” Those “warriors” who go all-in based on gut feeling or hold positions on faith all end up as fuel. The ones who survive and consistently make money, without exception, turn themselves into “strategy execution machines.”

I won’t talk about mysticism, just break down the core of my comeback—a replicable strategic framework that grew out of the ruins. Whether you’re a beginner or a veteran, you can use it to frame your risk and break the cycle of “losing money by luck.”

Step 1: Self-“formatting”—turn yourself into a machine

Don’t rush to study candlesticks; answer three critical questions first. Your answers directly determine what strategy you should use.

How “thick” is your principal?
Thin (<10,000 USDT): Your goal is survival and compounding. Each position ≤ 1/5 of your principal, stop loss ≤ 5%. Only risk profits, never touch your initial principal.
Thick (>100,000 USDT): Your goal is drawdown control. You must diversify positions—trend trades, swing trades, and hedges should be separate to avoid a black swan wiping you out.

How much time do you have to “watch the market”?
No time (office worker): Forget short-term trading. Your battlefield is “daily/4-hour charts.” Checking 3 times a day is enough. Be a trend catcher, not cannon fodder in choppy markets.
Free time (freelancer): You can play “1-hour/30-minute” swing trades, but must set automatic stop-loss and take-profit—don’t get glued to the screen.
Full time (pro trader): You can do short-term, but remember, high frequency ≠ high returns, and discipline requirements skyrocket geometrically.

How “impatient” is your personality?
Impulsive: Stay away from long-term trading. Best for “swing strategies,” holding for 1-3 days, taking frequent small wins to satisfy yourself.
Calm and patient: Stay away from short-term trading. Embrace “trend strategies,” ignore intraday swings, and get rewarded by big moves over 5-10 days.
Risk-averse: Use “fixed amount stop loss” (e.g., cut at a 100 USDT loss), not technical stops, because you won’t execute them.

Step 2: Build the “Three Axes”—Entry, Position Sizing, Take Profit/Stop Loss

Forget complicated indicators. Pros use just one or two core tools to the max. Here’s a ready-made “office worker with small capital” template:

Entry: Bollinger Bands + Moving Average “Confluence”
Long: Price holds above upper Bollinger Band + 5-day MA crosses above 10-day MA + volume increases by 30%.
Short: Price falls below lower Bollinger Band + 5-day MA crosses below 10-day MA + volume increases by 30%.
Rule: If any of the three is missing, do NOT enter.

Position sizing: Pyramid and safety cushion
5,000 USDT principal, fixed 1,000 USDT per trade (1/5 position), leverage ≤ 5x. After profit, only add to positions in a stepped manner using profits. Loss? Absolutely no averaging down. Averaging down is the VIP lane to liquidation.

Take Profit / Stop Loss: Survival and Letting Go
Stop loss (set on entry): Choose one—① cut at 8% loss no matter what; ② if price breaks the 5-day MA in the opposite direction, exit immediately.
Take profit (don’t be greedy): Take profit on half at 10% gain to lock in profits; take more off at 20%, set a “trailing stop” at breakeven for the rest and let profits run.

Step 3: Execute a “cold start”—Backtesting and trial trades

Don’t use real money to fumble. Backtest on past 3 months’ data, manually simulate trades by your rules. Win rate ≥ 50%, risk-reward ratio ≥ 2:1 is the baseline. Not there? Adjust your entry criteria.

Trial trades with small positions: Trade live with 10% of your principal (e.g., 500 USDT) for 2 weeks. The key is to keep a “trading journal,” recording every trade’s “plan vs. reality,” and especially noting the moments you “act impulsively.”

Ultimate rule: Discipline > Any strategy

Your strategy can be average, but your discipline must be ruthless. Staying in cash is an advanced move: 80% of sideways markets are just there to kill both longs and shorts. If you’re unsure, stay out. Execute as soon as triggers hit—no excuses: cut losses when stop is hit, hold on if take-profit isn’t hit. Trust your rules, not your heartbeat.

If you lose more than 10% in a single day, force yourself to shut down: when your mindset collapses, your trading will collapse even harder. Stop, and fight another day.

Remember: When I started with 5,000 USDT, my daily thought wasn’t about “doubling up,” but “can I avoid losing today?” All big money is built on countless small wins and small losses, slowly accumulated over time.

If you’re still “opening positions by feel, closing by prayer,” stop. Spend a week building your first strategy framework using the three steps above. Turn investing from metaphysics into a solvable application.

When you no longer ask, “Will it go up or down next?” but instead ask, “Has my strategy signal appeared?”—you’ve already outperformed 99% of contract traders.