Profitable contract trading, to be honest, doesn't fundamentally depend on whether you can accurately predict the market movements, but rather on how you manage risk and how each profit truly becomes a number in your account.

I started with a principal of $5,000 and achieved steady account growth through a systematic trading approach. This method is based on three core principles:

**First Layer: Secure Take-Profit Rhythm**

Set stop-loss and take-profit orders immediately when opening a position. When the account profit reaches 10% of the principal, withdraw 50% of that profit to a cold wallet, and continue to roll over the remaining profit. The benefit of this approach is obvious—if the market continues upward, you can enjoy compound interest; if the market reverses, the worst-case scenario is just giving back half of the profit, keeping the principal always safe.

**Second Layer: Multi-Timeframe Coordination to Find Opportunities**

Simultaneously analyze daily, 4-hour, and 15-minute charts. The daily chart is used for the overall direction, the 4-hour for defining trading ranges, and the 15-minute for precise entry points. Often, you can open two positions on the same coin—one following the trend to break out, and another lurking in the overbought zone for a counter-trend trade. Each position’s stop-loss is controlled within 1.5% of the principal, with take-profit targets set at over 5 times.

Markets spend about 80% of the time oscillating, which is exactly where this strategy performs best. During the Luna crash, when the price plunged 90% within 24 hours, both long and short positions took profits simultaneously, achieving over 40% account growth in a single day.

**Third Layer: Treat Stop-Loss as Participation Cost**

Use a small risk of 1.5% to gain exposure to major market moves. Statistically, the win rate might only be 38%, but the profit-to-loss ratio for each trade is 4.8:1. What does this mathematical expectation mean? For every dollar risked, you can earn an average of $1.9. If you can catch two trend-level moves in a year, the annualized return can often surpass traditional financial products.

**Three Iron Rules for Execution:**

First, divide your capital into 10 parts, use at most 1 part per position, and keep no more than 3 positions open simultaneously. This way, even if you hit several consecutive losses, you still have bullets to continue trading.

Second, exit immediately after two consecutive losses, and do something else to cool down. Never open revenge trades when emotions are high—that’s a direct path to blowing up your account.

Third, double your account and withdraw 20% each time, investing in safe assets like US bonds or gold. When a bear market truly arrives, this will give you peace of mind and prevent forced stops at the worst prices.

These rules sound simple, but executing them is very counterintuitive. The most frightening thing in the market isn’t the loss itself, but the inability to recover after a margin call.