This is the strongest Korean trader I have ever seen. He is definitely the Korean version of the demigod of the cryptocurrency world.
He used a small-capital, high-multiplier trading system of his own creation to turn 500,000 Korean won into more than 10 billion. Based on the current exchange rate, he earned 7.5 million U.S. dollars with a capital of 370 U.S. dollars.
He also made his entire trading system and profit records public on the DCInside forum and Binance, which is a very enviable profit. He also launched a trading challenge using his method, and many people made a lot of money using his method. It can be said that Flight is a very famous figure in South Korea.
The story begins in 2018, when Flight rushed into the cryptocurrency market with 2 million won, but his account was liquidated before the money even warmed up. After the liquidation, he began to summarize his experience and began to systematically learn trading. The 2 million won was equivalent to paying tuition for actual trading.
In the next six months, he read a lot of books and materials related to trading, and had a deeper understanding of the trading market. So he borrowed 500,000 won from his mother to re-enter the market, which was considered to be his formal journey of trading. The magical thing was that there was really a golden house in the book, and he made 25 million in one month.
From July 1 to December, the funds in the account have soared to 200 million won. Flight has been buying and selling in the market with full positions and making a lot of profit. He has not encountered any setbacks in the second battle. He did not realize that he actually had a big problem in risk management.
In the garbage market from January 4 to February 4, 2019, it lost half of its position. To make matters worse, some problems also occurred at home. At last, there was only 20 million won left in the account.
This heavy blow made Flight realize the risks of full-position entry and exit. If he continued like this, the bomb would fall on his head one day, and any profit he made in the early stage would only be floating profit.
In the analysis and review he thought about day and night, he found a way to use small funds and large leverage to conduct contrarian trading. That is, he only uses a small part of the account funds to set the lower limit each time, and then combines some high-certainty strategies to trade. This can ensure that he will not suffer major losses in extreme market conditions, and can also maximize the profit margin while ensuring the efficiency of fund use.
So he first cashed out 14 million won and deposited it in the bank, leaving only 6 million won in the trading account, and started his flying trading challenge.
Next, I will reveal his method to you. Please check whether you have clicked the follow button.
The first is called the high-multiplier wave strategy, a risk management strategy that is considered to be at the heart of fly trading.
When trading with high leverage, strictly control the proportion of funds invested in each transaction to spread the risk and gain a higher profit margin. For example, if we have a principal of $10,000 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 you can hold Bitcoin worth $2,000 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 ten.
The stop loss of the three targets can be set to about 2%, that is, the loss of 40 US dollars will be stopped, which means that the loss in one day cannot exceed 400 US dollars. Some people are used to the clean way of stopping loss when the position is liquidated, so it is necessary to set the opening mode to position by position, and the position loss in one day cannot exceed 400 US dollars.
The profit stop can be taken in batches or directly when the expected price is reached. If the technical analysis strategy has a high degree of certainty, this method can often capture large profit margins, and the emotional impact of small funds on traders will not be so obvious.
Another very important point is to withdraw cash frequently and not to let the account funds accumulate too much. Deposit the money you earn in the bank, especially when the account has made huge profits or accumulated a considerable amount of money. Otherwise, everything will be in vain. Remember that this behavior is very important.
The second is the knife-edge strategy to catch the decline in counter-trend trading.
Flight believes that the appearance of a K-line with huge trading volume near a key area in a sharp downward trend is a signal of a high probability of a short-term reversal, especially when two consecutive waves of large volume K-lines appear.
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 risky, just like catching a knife, and 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 in these areas to make orders based on these positions. There are a lot of buy orders and active buy orders, as well as orders guided by short orders, which can form a significant stop effect on prices. The longer the time period of these key areas, the greater the short-term price fluctuations, and the larger the K-line with a sharp rise and fall hits here, the probability of a rebound will be very high.
This is the daily chart of Bitcoin. You can see that the big negative line on May 19, 2021 went directly from 43,600 US dollars to near the integer mark of 30,000 US dollars. At the same time, this was 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 black candlestick hit an important large-scale structure that is far away. This is a very good position. If you can receive an order nearby, the profit within 30 minutes can reach more than 10%. If you use a high-multiplier strategy, the position can be doubled several times in a short period of time. This is the advantage of catching the counter-trend blade. 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 March 13, 2020 reached the absolute bottom position. At that time, Ouyang, a big god 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. At the time of closing the position, this order had helped him earn nearly one million US dollars.
The third strategy is to use the divergence between volume and RSI to confirm a trend reversal. This strategy is similar to the Demigod MACD strategy.
RSI indicates whether the market is overbought or oversold, while trading volume is a direct reflection of market activity. When prices reach a new high, but RSI and trading volume are getting smaller and smaller, it means that the market is overbought and the momentum is beginning to weaken, and the funds that continue to buy are beginning to decrease.
When this divergence occurs, the probability of 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, 100, and 200 moving averages.
For convenience, we can find a combined indicator of five moving averages in the indicator search bar of tradingview, click to collect and add to the chart. In Flight's view, the sign of a continuous upward trend is that when the trend line is touched, it will quickly move away with the 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 to fall next.
Well, there are five strategies for Flight trading. I have talked about three of them this time. If you are interested, I will continue in the next issue. Let’s see if you can pay attention!
So as not to miss out on more profitable trading systems.
