#数字资产市场动态 Mathematical thinking changed my trading life—"The Foolproof Method" behind 6 years of zero drawdown

To be honest, I’ve seen too many people gamble on ups and downs or chase hot trends in the crypto market, ending up with nothing. Later, I realized that trading isn’t about predicting to make money, but about managing risk to survive.

I started with $8,000 in 2018, and to this day, my maximum account drawdown has never exceeded 3%. It’s not that I have some divine skill, but that I designed a "Risk-Reward Table" and strictly follow the process.

**The first key: Profit Separation**

Whenever profits reach 10% of the principal, I immediately withdraw 70% to a cold wallet, and the remaining profit continues to roll in the market. What’s the benefit of this? If the market continues to rise, you earn with zero-cost chips; if it falls, you only lose the profits, and the principal remains untouched.

Over 7 years, I’ve made 56 withdrawals. The most memorable month I withdrew 300,000 USDT directly, and the exchange even called me to confirm the account (laughs).

**The second key: Hedging trades to eat volatility**

My habit is to look at three timeframes simultaneously—weekly for the big direction, daily to find support and resistance levels, and 1-hour charts for precise entry points.

Many people get the direction wrong and fail, but I do things differently. I place both long and short orders on the same coin, with stop-losses set below key levels, and take-profit targets over 8 times the risk. Most of the time, the market fluctuates up and down; while others get repeatedly slapped in the face, I profit from volatility by placing bid and ask orders on both sides.

**The third key: Treat stop-loss as "admission fee"**

Every time I set a stop-loss, I think—this is the money I must spend to catch big trends. So I strictly control each stop-loss within 0.8% of the principal, never exceeding it.

Once the trend confirms it’s moving in the right direction, I use trailing stops to let profits run; if it goes against me, I get out immediately, never engaging in "revenge trading."

**Three iron rules to eliminate all risks**

Divide your funds into 20 parts, use only 1 part per trade, and hold at most 3 parts in total. Even if you hit several stop-losses, you won’t die. If you lose two trades in a row, shut down for a day—that’s a lifesaver. Also, whenever your account doubles, withdraw 40% to allocate to low-risk assets, preventing profits from being lost back.

Trading ultimately is about using small losses to test and find big opportunities. Slow is fast, and stability is key to surviving until the end.