Having been in the crypto space for so many years, I've seen too many people chasing rallies and panicking, frequently going against the trend, and ending up losing more and more. Conversely, those seemingly clumsy methods tend to last the longest. Today, I will break down a proven practical trading system.

**Capital Segmentation is the First Line of Defense**
Divide your available funds into five parts, and only use one-fifth each time. This is the most direct way to reduce individual trade risk. Set a hard stop-loss at 10%, so a single mistake can at most lose 2% of your total capital. Even if you make five consecutive mistakes, your overall loss remains within 10%. But as soon as you get one correct trade, aim for a take-profit of over 15%—such a risk-reward ratio ensures a positive expected value in the long run.

**In the Face of Trends, Obediently Admit Defeat**
Rebounds in a downtrend are traps—don’t be fooled. Corrections in an uptrend are genuine opportunities. This isn’t some advanced theory; it’s about grasping the basic rhythm of the market. Coins that have surged in the short term, whether mainstream or small-cap, should be avoided—opportunities for multiple strong upward waves in a short period are rare. Stagnation at high levels often signals exhaustion; a decline is inevitable.

**MACD + Zero Line Breakthrough**
Use MACD on the technical level; the logic is clear and stable enough. When DIF and DEA form a golden cross below the zero line, and then both lines cross above zero together, it’s a confirmation signal to enter. Conversely, when a death cross occurs above the zero line, immediately reduce your position or exit completely—don’t be greedy.

**Volume-Price Divergence Is a Signal to Escape**
A volume breakout at a low level indicates genuine capital inflow—continue to follow the trend. If volume increases at a high level but the price doesn’t rise, that’s a scam signal—get out. The degree of volume-price alignment determines the authenticity of the trend.

**Absolutely No Averaging Down When Losing**
The habit of “adding to losing positions” has harmed countless traders. When your psychological account gets messy, you start using funds from losses to try to recover—often making things worse. The iron rule is: cut your losses when you’re losing, and add to positions only when you’re making profits. This discipline will help you survive longer.

**Multi-Cycle Resonance to Confirm Trends**
Is the 3-day moving average turning upward? Short-term opportunity. Is the 30-day moving average turning upward? Medium-term view. Is the 84-day moving average turning upward? The main upward wave might be coming. Is the 120-day moving average turning upward? The long-term trend is truly stable. The more cycles point in the same direction, the higher your chances of successful trading.

**Review as an Essential Part of Every Trade**
After each exit, ask yourself: Is the original logic for holding the coin still valid? Does the weekly K-line trend match your judgment? Has the major trend changed? Do you need to adjust your strategy? As the market changes, your execution must also adapt, but the overall direction should not be distorted. This habit will save you many detours.