What do I want to say today? Let's talk about operating systems, cryptocurrencies, futures, and stocks; they are all similar. The simpler the profit model, the easier it is to use. In the cryptocurrency market, I currently use only two lines: EMA13 and EMA26, with no other indicators. My profit model is very simple; of course, I often make mistakes, which is unavoidable and a necessary cost to bear. However, when successful, measured by straight-line distance, the stop loss is at the entry price, and from entry to exit, it is at least 1:3 to 4-5. After accounting for the necessary tolerance of floating profit loss, the profit and loss ratio is roughly 2.6:1.
What does that mean? You can understand the odds as 1 to 2.6, meaning that a 30% success rate breaks even (after deducting fund fees and closing costs). Currently, my success rate is about 40%, of course, the more data, the more accurate it becomes. According to historical assessments, it is roughly around 38%. Quite low, right? This is the essence of DU BO; the probability cannot be broken through, so we find ways to think about it from the odds perspective. In traditional games, the amount won or lost each time is fixed, while in financial speculation, theoretically, the odds have no upper limit. This is what makes it more attractive than traditional gambling.
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