In the cryptocurrency circle, everyone has tasted the feeling of account shrinkage after struggling. But I found that those who truly make money are not the reckless types who double their accounts overnight, but rather those who strictly control drawdowns and keep their account curves steadily upward. Today, I want to share a strategy I have used, which once helped a friend turn 2,800 yuan of principal into 156,000 yuan in 45 days. This is not speculation, nor luck, but a set of robust methods that can be reused.

**Why should small funds pay more attention to methods?**

Carefully observing people around me losing money, it mainly comes down to these pitfalls: chaotic position management (a single mistake leads to liquidation), trading too frequently (fees gradually eat away all profits), stubbornly holding losing positions (hoping for a rebound while sinking deeper). There is a striking data—annualized returns of low-frequency trading are about 7 percentage points higher than high-frequency traders. What does this mean? The crypto market is not a casino. The primary goal for small funds is not quick doubling, but surviving long enough.

**My four-step guaranteed win framework**

**First move: Three-stage position division to build a solid defense**

How to split 2,800 yuan? Here’s my approach:

Initial testing phase (840 yuan, 30%): used to explore and feel the market temperament. Even if this part loses, it won’t cause serious damage.

Flexible fund allocation (840 yuan, 30%): follow the trend once the direction is clear. This part aims to amplify profits.

Bottom-line funds (1,120 yuan, 40%): only used after earning in the first two stages. This is the absolute safety zone.

Why divide it this way? Because I never put all my assets on one bet. Do you know how much the maximum drawdown can be with full position? Literature states it can reach -54%. The layered approach to building positions can significantly reduce risk.

**Second move: Only trade high-probability setups**

I never try to guess bottoms or tops. My habit is to follow the trend.

Look at intraday and daily charts, confirm the direction without ambiguity before acting. Although this might cause me to miss some of the earliest cheap entries, it helps avoid many false breakouts and fake signals. Overall win rate will be higher.

Also, I set fixed stop-loss points. When floating losses reach a certain percentage, I cut immediately—never soft-hearted. This discipline is more important than anything else—it keeps you alive for the next market cycle.

**Third move: Profit rolling, let compound interest do the work**

Whenever a cycle’s profit is secured, I use that profit to start the next round. For example, if I earn 1,200 yuan the first time, the new principal becomes 4,000 yuan. Keep rolling like this, and growth accelerates.

From a mathematical perspective, with the same win rate, the larger the principal, the greater the absolute profit per trade. It may seem slow initially, but in the middle and later stages, the power of compounding becomes evident.

**Fourth move: Psychological resilience, stability is more scarce than technique**

I’ve seen skilled traders crash out of the crypto market because of poor mentality, and I’ve seen rough but highly disciplined traders quietly making money. What’s the difference? The latter won’t overturn their entire strategy after a loss, nor will they change their rhythm just because others are making huge profits.

Traders need to recognize a reality: consistent profits are always more valuable than one-time big wins. Big wins are often followed by big losses, while those who maintain steady growth end up with the best account curves.

For small funds in the crypto space, the way out is not to gamble on that one in ten thousand chance of getting rich overnight, but to accumulate step by step with systematic methods. This path may be slower, but more people will reach the end.