After so many years in the circle, I've seen too many people get liquidated on contracts, chase gains, and end up losing even their principal. I use a different approach—no guessing ups and downs, no need to watch the charts constantly, instead I let the exchange's volatility work for me. After five years of practical trading, my account curve has been rising at a 45° angle all along, and most importantly, my principal drawdown has never exceeded 10%.

Back in 2017, when I entered with $5,000, people around me either had their contracts liquidated and had to mortgage their houses or got caught in the market and lost everything. But I was doing something they didn't expect—placing myself in the position of the "casino owner," not the gambler.

**Step 1: Lock in profits and protect the account**

Every time I open a trade, I set take profit and stop loss at the same time, never changing them on the fly. The key point is: once profits reach 10% of the principal, I immediately take 50% of the profit to a cold wallet, and the remaining profit is used to roll over positions.

The benefits of this are obvious. If the market continues to rise, you earn compound interest; if it suddenly reverses, at worst you only give back half of your profits, and your principal is always safe. Over these five years, I've withdrawn profits 37 times, with the largest single withdrawal being $180,000 in one week. The exchange customer service even verified via video if I was laundering money—that's the confidence of "taking the gains off the table."

**Step 2: Dislocated position building, earning on both sides in oscillations**

I pay attention to three timeframes: daily, 4-hour, and 15-minute. The daily is used to judge the big trend, the 4-hour for trading ranges, and the 15-minute for precise entries.

For the same coin, I open two orders simultaneously. Order A is a breakout chase long, with a stop loss set at the previous daily low; Order B is a limit order lurking in the 4-hour overbought zone to short. The stop loss for both orders is no more than 1.5% of the principal, but their take profits are set at over 5 times.

Markets spend 80% of the time consolidating. While others get liquidated, I profit from both sides. During the Luna collapse last year, within 24 hours, the price plunged 90%. Both my long and short orders hit their take profits, and my account surged 42% in a single day.

**Step 3: Treat stop loss as an entry opportunity**

Most people fear stop loss, thinking it’s a loss. My view is different—stop loss is actually using a small 1.5% risk to exchange for a chance to sit at the table like a big player. Getting stopped out isn't bad; it shows respect for risk.

Remember these three iron rules:

1. Divide your capital into 10 parts; use at most 1 part per trade, and never hold more than 3 positions at a time.
2. After two consecutive losses, close your trading app and go to the gym; never open a "revenge trade."
3. Double your account each time it doubles, then withdraw 20% to buy US bonds or gold; this way, you can profit passively even in a bear market.

This method sounds simple but is counterintuitive to human nature. The biggest risk in crypto isn’t your misjudgment but getting liquidated and unable to recover. Master these three tactics, and you can make the exchange work for you.