ChainCatcher news, trader Eugene posted on the social platform, "Making money in the crypto market is one thing, and keeping profits is another. When you plan an exit strategy for this cycle, be committed to minimizing the retracement from the historical highs after the market turns. For those who say that they can continue to make profits in both bull and bear markets, I can only wish you good luck - because it means you have to be one of 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 of net worth:
0-20%: Your defense is perfectly in place, possibly to the extent of sacrificing too much upward potential;
20-30%: Operated very well. Able to see signals of market shifts and exit in time, with minimal losses;
30-50%: Performance is decent. Although not the best, ideally you should have made a good profit;
50-75%: You stayed too long and failed to identify the key turning point at the end of the cycle;
75%: There is a serious problem at some stage, and you need to comprehensively assess whether you are suitable to continue trading.
Interestingly, before the next cycle begins, you will never know the actual extent of the drawdown. But regardless, it is always worth planning ahead.