#数字资产市场动态 I have taken many detours. When I first started trading contracts, my screen was filled with all kinds of indicators—MACD, KDJ, Bollinger Bands—I wanted to open all of them. But what happened? The more indicators there were, the harder it was to see the direction clearly, and my account also shrank accordingly.
It was only later that I realized a principle—simplifying complex things to the extreme is actually the most stable approach.
My current trading method might sound a bit "dumb," but the results are surprisingly good. First, I only keep two moving averages on the chart: EMA21 and EMA55, hiding all others. When these two lines have a golden cross, I consider opening a long position; when they have a death cross, I consider opening a short. That’s it. Second, I focus on the 4-hour candlestick chart. Small cycle fluctuations are like noise, causing frequent stop-losses. Only when the moving averages cross clearly on the 4-hour chart and the candlestick closes confirming the direction do I truly consider entering the trade.
Stop-loss placement is the lifeline of trading. Before opening any position, I set the stop-loss firmly, usually near the high or low of the previous 4-hour candlestick. My rule for myself is: never lose more than 5% of the principal on a single trade. In the past, I would lose 20% easily; now, I exit decisively at 5%, which actually makes my mindset more stable.
In terms of capital management, I only use a small portion for the initial position (for example, 5% of the account). When the trend is confirmed and continues, I use floating profits to add small positions, letting profits run naturally. Additionally, I only make one or two trades per day. The market is mostly in oscillation zones, so there’s no need to watch the screen all day. Missing ten opportunities isn’t fatal, but making one wrong move can be very damaging.
Trading isn’t about who is more diligent, but about who has more patience to follow their simple rules. Slow down, and you can go further.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
14 Likes
Reward
14
7
Repost
Share
Comment
0/400
BugBountyHunter
· 6h ago
Just two moving averages can dominate the market; I need to ponder this logic... But on the other hand, your 5% stop-loss is indeed ruthless, much more straightforward than my previous indicator stacking approach.
View OriginalReply0
SilentAlpha
· 7h ago
To be honest, I have to say I'm a bit impressed by your strategy. Before, there were all kinds of indicators flying around, but now I realize that the simpler it is, the more profitable it becomes.
View OriginalReply0
gaslight_gasfeez
· 7h ago
This guy's point is spot on; less fussing around is the real key.
View OriginalReply0
CafeMinor
· 7h ago
Haha, okay. I've definitely seen many people make money with this approach, but it's really a test of your mindset.
View OriginalReply0
GasGrillMaster
· 7h ago
Wow, really. I used to stack indicators like a Christmas tree, and as a result, I lost money really fast.
Two moving averages are enough. Simple and straightforward is just so satisfying, and it helps keep a much calmer mindset.
View OriginalReply0
GateUser-a180694b
· 7h ago
I really relate to this. In the past, I also had indicators filling the screen, but it couldn't save losing accounts at all.
To put it simply, it's just fussing around; those who truly make money are the ones who are lazy.
The 5% stop-loss idea is pretty good, much better than mine.
This series of articles explains everything very clearly. Unfortunately, many people know about it, but few actually implement it. Most are still trading frequently and trying to outsmart themselves.
View OriginalReply0
SelfCustodyBro
· 7h ago
Simplification is the ultimate skill, and there's nothing wrong with that. I used to have more and more indicators, and I was losing faster and faster haha.
---
Two moving averages are really amazing, but they are easy to be tricked by. Have you ever encountered that?
---
I agree with a 5% stop loss; it really helps keep the mindset stable. It's just a bit difficult to execute...
---
Talking about one or two trades a day sounds nice, but that itching feeling when missing out on a huge rally...
---
Money management is always the most boring but most important. Most people get stuck because they can't bear small stop losses.
---
It sounds very stable, but is the 4-hour level really enough in this market with frequent flash crashes?
---
There's no problem with this logic; what’s needed is execution rather than methodology. Most people fall short here.
---
"Slow down to go further," this phrase should be posted in every trader's office.
#数字资产市场动态 I have taken many detours. When I first started trading contracts, my screen was filled with all kinds of indicators—MACD, KDJ, Bollinger Bands—I wanted to open all of them. But what happened? The more indicators there were, the harder it was to see the direction clearly, and my account also shrank accordingly.
It was only later that I realized a principle—simplifying complex things to the extreme is actually the most stable approach.
My current trading method might sound a bit "dumb," but the results are surprisingly good. First, I only keep two moving averages on the chart: EMA21 and EMA55, hiding all others. When these two lines have a golden cross, I consider opening a long position; when they have a death cross, I consider opening a short. That’s it. Second, I focus on the 4-hour candlestick chart. Small cycle fluctuations are like noise, causing frequent stop-losses. Only when the moving averages cross clearly on the 4-hour chart and the candlestick closes confirming the direction do I truly consider entering the trade.
Stop-loss placement is the lifeline of trading. Before opening any position, I set the stop-loss firmly, usually near the high or low of the previous 4-hour candlestick. My rule for myself is: never lose more than 5% of the principal on a single trade. In the past, I would lose 20% easily; now, I exit decisively at 5%, which actually makes my mindset more stable.
In terms of capital management, I only use a small portion for the initial position (for example, 5% of the account). When the trend is confirmed and continues, I use floating profits to add small positions, letting profits run naturally. Additionally, I only make one or two trades per day. The market is mostly in oscillation zones, so there’s no need to watch the screen all day. Missing ten opportunities isn’t fatal, but making one wrong move can be very damaging.
Trading isn’t about who is more diligent, but about who has more patience to follow their simple rules. Slow down, and you can go further.