This is the strongest Korean trader I have ever seen. He is definitely a demigod in the Korean cryptocurrency world. He used a self-created small-capital high-multiplier trading system to turn 500,000 won into more than 10 billion. According to the current exchange rate, he earned 7.5 million US dollars with a capital of 370 US dollars.
He also launched a trading challenge using his method. Many people made a lot of money using his method. Flight is definitely a very famous person in Korea. He used a small amount of capital to open a large leverage to do contrarian trading.
The method is to use only a small part of the account funds each time, set a lower limit, and then combine some high-certainty strategies to trade. This can ensure that there will be no big losses in extreme market conditions, and it can also maximize the profit space while ensuring the efficiency of fund use. The first of the three major strategies is called the high-multiplier seeding strategy. This risk management strategy is considered to be the core of flight trading. While trading with high leverage, strictly controlling the proportion of funds invested in each transaction to diversify risks can also gain higher profit margins!
For example, if we have a capital of $10,000 ready to trade Bitcoin, the first thing to do is to determine the investment ratio. We can stipulate that we only invest 1% of the total position in each transaction, which is $100. The next step is to choose an appropriate leverage. For example, a leverage of 20 times means that we can hold $2,000 worth of Bitcoin in each transaction. You can open a position for any target that meets the entry signal. The number of targets opened at a time should not exceed three, and the number of positions opened per day should not exceed 10. The stop loss for a single target can be set to about 2%, which means that the loss of $40 will be stopped, which is equivalent to a loss of no more than $400 per day. Of course, some people are used to the clean method of stopping loss when the position is blown up. In this case, you need to set the opening mode to position by position. Similarly, the position loss per day cannot exceed $400. Stop profit can be taken in batches or directly at the expected price. If the technical analysis strategy is highly certain, this method can often capture large profit margins, and small funds will not affect the emotions of traders so much. Another important point is that you must withdraw cash frequently and do not accumulate too much funds in your account. It is very important to deposit the money you earn into the bank, especially when the account has made huge profits or accumulated a considerable amount of money, otherwise everything will be in vain!
The second is to capture the falling blade strategy in counter-trend trading. Flight believes that the K-line with huge volume of transactions appears near the key area in the sharp downward trend.
It is a signal of a high probability of reversal in the short term, especially when two consecutive large K-lines appear, the effect will be better.
If you bet on a quick price rebound here, the profit and loss ratio will be very considerable. This kind of counter-trend trading is relatively risky, just like catching a knife, it is absolutely high risk and high return.
Key areas can be resistance or support positions. Resistance or support is a general term, such as structural positions, supply and demand areas, Fibonacci retracement lines, trend lines, near previous highs and lows, etc. There are a lot of funds to make orders based on these positions. There are a lot of buy orders and active buy orders, as well as short-term stop-profit orders, which can form a significant stop effect on prices. The larger the time period of these key areas, the greater the short-term price fluctuations, and the higher and lower K-lines hit here, the probability of an instant rebound will be very high. This is the daily chart of Bitcoin. It can be seen that the big negative line on 2021/5/19 directly hit the integer mark of 30,000 US dollars from 43,600 US dollars. At the same time, this is also the key support position in the early stage. With a drop of more than 30%, there are almost no surviving bulls in the market. The huge sharp drop in the big negative line hits the important large-level structure that is far away, which is a good position. If you can receive an order in this vicinity, the profit within 30 minutes can reach more than 10%. If you use a high-multiplier strategy, the position can be multiplied several times in a short period of time.
This is the benefit of catching the edge of the counter-trend. The market will give us timely feedback. Some continuous declines with huge volume are often the starting point of another round of trends. For example, the huge volume bottoming K-line on 2020/3/13 reached the absolute bottom. At that time, Ouyang, a big player in the currency circle, received a long order and held the position for a long time until the exchange had problems and forced him to close the position. When the position was closed, the order had helped him earn nearly 1 million US dollars!
The third strategy is to use the divergence between volume and RSI to confirm the reversal of the trend. This strategy is similar to the Demigod MACD strategy. RSI indicates whether the market is overbought or oversold, while volume is a direct reflection of market activity.
When the price reaches a new high, but the RSI and trading volume are getting smaller and smaller, it means that the market is overbought and the momentum is beginning to weaken. The funds that continue to buy begin to decrease. When this divergence occurs, the probability of a price reversal is relatively high!
When the closing price of the K-line falls below the trend line or the second moving average, it is a signal to close a position or enter a short position. The moving average parameters here are 7/20/50 and 100/200 moving averages. For convenience, we can find a combined indicator 5MA that combines 5 moving averages in the indicator search bar of Tradingview. In Flight's view, the sign of a continued upward trend is that when the trend line is touched, it will quickly move away with an increase in trading volume. If the K-line continues to oscillate near the trend line or moving average like this, it is very likely to start falling next.