According to BlockBeats, on December 18, top trader Eugene Ng Ah Sio wrote that making money in the crypto market is one thing, and keeping profits is another. When you plan your exit strategy for the cycle, the goal is to minimize the retracement from the highest point after the cycle turns. For those who claim to be able to make profits consistently in both bull and bear markets, I can only wish you good luck, because it means you have to be among the top 0.01% of top traders in the world. Here is my indicator for measuring investment performance - the percentage of retracement from the new high point of net worth:
0-20%: Your defensive performance is perfect, but you may have sacrificed too much upside; 20-30%: You have done a good job and were able to withdraw in time when you saw the market turning signal without too much loss; 30-50%: Your performance is acceptable, although not the best, but ideally you should have made a good profit; 50-75%: You held the position for too long and failed to identify the key turning point at the end of the cycle;
>75%: Something has gone terribly wrong somewhere and you need to fully evaluate whether you should take the trade.
The interesting thing is, you never really know what a true drawdown will be until the next cycle begins, but it’s still worth planning regardless.