In 3 minutes, understand why some people can withdraw stably from exchanges while others frequently get liquidated—it's not luck, but this set of trading logic.

When I entered the crypto space in 2017, I only had $5,000 in my pocket. Over five years, that amount grew to seven figures, and most importantly, I never experienced a liquidation. Friends around me often lose everything in futures trading, some even mortgage their houses, but my account curve has always maintained a 45° growth angle, with a maximum drawdown never exceeding 8%.

I don’t rely on insider information, airdrops, or superstitious K-line patterns. The method is actually simple: view the market as a game scenario, and see yourself as a participant rather than prey. Breaking it down, the core consists of these three trading strategies:

**Take Profit and Compound Interest Are the Account’s Shield**

Set take profit and stop loss at the moment of placing an order—this is not just formalism. When the account profit reaches 10% of the principal, immediately withdraw half to a cold wallet for locking, and let the remaining profit continue to compound. The benefits are obvious: if the market continues to rise, you enjoy the pleasure of compounding; if it suddenly reverses, you only give back half of the profit, keeping the principal as if it had been vaccinated.

I’ve practiced this method for 5 years, with 37 withdrawals, the largest being once $180,000 in a single week. Later, the exchange’s customer service even verified via video once, worried I was laundering illicit money (laughs).

**Multi-Cycle Linkage Turns You Into a Profit-Taker on Both Ends**

Pay attention to the daily, 4-hour, and 15-minute charts, treating them as three different perspectives. Use the daily chart to judge the overall direction, the 4-hour chart to find specific activity zones, and the 15-minute chart for precise entry points.

For the same coin, I usually open two orders: Order A in a key breakout to chase the long side, with a stop loss placed at the previous low on the daily chart; Order B uses limit orders in the overbought zone on the 4-hour chart, waiting for a rebound to short. Both stop losses are strictly controlled within 1.5% of the principal, but take profit targets are set at over 5 times.

80% of the market time is spent in consolidation, which is when most people lose money. But with this method, consolidation itself becomes a profit mechanism—positions where others get liquidated become opportunities for me to profit on both sides. Remember the Luna crash in 2022, where within 24 hours, the price plunged 90%. My long and short orders both took profit, and my account increased by 42% in a single day.

**Leverage Effect of Small Risks for Big Market Moves**

Many see stop loss as a failure, but I see it as an entry ticket. Using 1.5% controlled risk to follow the trend is the most cost-effective trading approach.

When the market looks good, move the stop loss to let profits run; when the market turns bad, exit promptly without greed. Looking back at these 5 years of trading, my win rate is actually only 38%—it might sound discouraging, but it doesn’t prevent account growth. The secret lies in the risk-reward ratio: on average, each win is 4.8 times the loss, with a mathematical expectation of +1.9%. In other words, for every 1 unit of risk, I can reliably earn 1.9 units. With this approach, just catching two real trend waves a year can outperform bank savings by a lot.

**Three Bottom Lines of Practical Trading**

Divide your capital into 10 parts for management, use at most one part per position, and never hold more than 3 positions simultaneously. After two consecutive losses, close the trading software and go to the gym to clear your mind—absolutely no revenge trades. When the account doubles, withdraw 20% of the profit and shift it into safe assets like US bonds or gold, so even if a bear market hits later, you can stay calm.

The method sounds simple, but executing it goes against human nature. The market doesn’t fear occasional misjudgments, but the biggest danger is a single liquidation that completely knocks you down and makes it impossible to get up again. Mastering these three strategies, rather than defeating the market, is about learning to coexist with its rhythm.