After five years of trading cryptocurrencies, turning an initial capital of 20,000 into 30 million, I only used one strategy with a win rate of nearly 99%, suitable for all investors. Today, I will share this very simple method, which even cryptocurrency beginners can easily profit from as long as they strictly adhere to it.
First, we will set three moving averages on the K-line chart: the 5-day moving average, the 15-day moving average, and the 30-day moving average. The 30-day moving average is known as the lifeline and serves as a strong support or resistance level. Through these three moving averages, we can buy or sell the cryptocurrency.
1• The selected cryptocurrency must be in an upward trend, or at least in a consolidation phase. If the cryptocurrency is in a downward trend or the moving averages are opening downwards, it should absolutely not be chosen.
2• Divide the funds into three equal parts. When the price breaks above the 5-day moving average, buy one-third with a light position; when the price breaks above the 15-day moving average, buy another one-third; similarly, when the price breaks above the 30-day moving average, buy the final one-third. This step must be strictly followed.
3• If the price does not break above the 15-day moving average after breaking the 5-day moving average, but instead pulls back, as long as it does not fall below the 5-day moving average, maintain the original position; if it falls below, sell.
4• If the price breaks above the 15-day moving average but does not continue to break higher, and the pullback does not fall below the 15-day moving average, continue to hold; if it falls below, first sell one-third, and as long as it does not fall below the 5-day moving average, continue to hold one-third of the position at the 5-day moving average.
5• When the price continues to break above the 30-day moving average and then pulls back, sell in order according to the previous method.
6• The selling strategy is the opposite of buying. When the price is at a high level and falls below the 5-day moving average, first sell one-third; if it does not continue to fall, hold the remaining two-thirds of the position. If the 5-day, 15-day, and 30-day moving averages are all broken, sell everything and do not hold onto any hope. This 'foolproof' operation, while simple, is most importantly about execution. Once you buy, the trading system is established, and only by strictly adhering to trading discipline can you achieve profits.