In early 2017, I entered the crypto world with $5,000. I've seen many bloody liquidation stories—some mortgaged their properties, others went back to square one overnight. But my journey over these five years has been different: I don’t rely on guessing price movements or constantly watching the market. Instead, my account curve steadily climbs, with a maximum drawdown never exceeding 10%, turning five thousand into seven figures.

Today, I’ll break down this method, which boils down to three core tricks—seemingly unremarkable but potentially transforming your understanding of trading.

**Step 1: Lock in profits and install a pressure relief valve for your account**

Before opening a position, what should you do? Set your take-profit and stop-loss first—that’s the baseline. When profits reach 10% of your capital, I throw half into a cold wallet. The remaining half continues to grow, using pure profits to compound.

If the market rises? Take advantage of compound growth dividends. If it reverses? At most, give back half of the profits, but your principal remains untouched. Over these five years, I’ve withdrawn cash 37 times, with the highest weekly withdrawal reaching $180,000, and even verified via exchange customer service video checks—showing how high-frequency this approach is.

**Step 2: Stagger time cycles and pick up bargains near liquidation points**

Simultaneously monitor three charts—daily, 4-hour, and 15-minute. The daily sets the trend direction, the 4-hour finds comfortable oscillation zones, and the 15-minute is used for precise entries.

Open two positions on the same trading pair: go long when breaking key levels, with stop-loss placed at the recent swing low on the daily chart; simultaneously, place a limit short in overbought zones, controlling stop-loss within 1.5% of your capital, and set a profit target of 5x or more.

During the Luna crash in 2022, which plunged 90% within 24 hours, I closed both my long and short positions with profits. That day, my account surged by 42%.

**Step 3: Treat stop-loss as an entry ticket—use a 1.5% bet to double your chances**

I’ve never thought of stop-loss as a waste of money. When the market moves favorably, I move my take-profit to let profits run; if the market turns bad, I exit decisively.

Look at my results: a win rate of only 38%, but an astonishing profit-to-loss ratio of 4.8:1. The mathematical expectation is a positive 1.9%—meaning, for every dollar risked, you can reliably earn $1.90. Just catching two trends a year can outperform most bank savings.

**The three iron rules of practical trading:**

Divide your account into 10 parts, use only 1 part per trade, and hold no more than 3 open positions. After losing two trades in a row, stop trading, go to the gym to relax, and never touch the “revenge trading” mentality. Each time your account doubles, take out 20% to invest in US bonds or gold. Even in a bear market, you can earn interest passively.

The real money-making logic in crypto has never been about predicting correctly; it’s about surviving. These three tricks may seem simple, but they can help you avoid liquidation traps time and again, turning exchanges into your long-term cash machines.