A Delivery Courier's 120x Return: Decoding the 5-Day Moving Average Strategy That Turned 500 U into 60,000 U

The True Story Behind Crypto Success

Earlier this year, a delivery worker in Zhejiang province executed a remarkable trading feat: converting an initial investment of 500 U (approximately 3,000 yuan) into 60,000 U (roughly 400,000 yuan) within six months. This 120-fold multiplication of capital, achieved in such a compressed timeframe, exceeded what he had accumulated through a decade of courier work. The secret behind this success wasn’t luck or market timing, but a disciplined application of a single technical indicator: the 5-day moving average (MA5).

Understanding the 5-Day Moving Average: The Foundation

At its core, the 5-day moving average is a technical line that connects average closing prices over the preceding five trading sessions. This simple yet powerful indicator serves as a reflection of short-term market psychology and buyer positioning. Think of MA5 as the collective average cost basis of active market participants over the past week—it tells you where the crowd stands.

How to Identify It on Your Trading Platform:

1. Navigate to the chart display and locate the technical indicators menu
2. Add the Moving Average (MA) indicator to your workspace
3. Set the parameter to 5 days and remove cluttering lines (such as MA10 or MA30)
4. Observe how this line moves in relation to current price action

The Strategic Framework: When to Enter and Exit

The 5-day moving average operates on a fundamental principle: it reveals support and resistance in real-time. Market reversals often announce themselves through price interactions with this line.

Bullish Scenarios (Buying Opportunities):

• The Breakout: When MA5 transitions from declining to level or rising, and price penetrates above this line with conviction, accumulation phase is beginning
• The Bounce: When price dips briefly below MA5 but recovers swiftly while remaining in an uptrend, this represents a lower-risk entry point
• The Steady Climb: As MA5 maintains an upward trajectory, tactical dips create buying zones; aggressive traders add to positions during these pullbacks

Bearish Scenarios (Risk Management Points):

• The Divergence: When price climbs sharply above MA5, increasing the distance between them, the rally is overextended; this signals preparation for consolidation or correction
• The Breakdown: When MA5 flattens or declines and price closes below it without recovery, the trend has reversed; holders should exit and shorters should prepare
• The Stall: Sideways consolidation near MA5 typically precedes the next directional move; avoiding trades during these zones protects capital

Practical Application: Three Profit Scenarios

The most disciplined traders apply three complementary approaches:

1. Two-Way Trading: Execute both long and short trades according to market regime; works equally well in bull markets and bear markets

2. Core Holding Strategy: Focus exclusively on major cryptocurrencies (BTC/ETH); buy during designated dips and hold for extended periods (12+ months), letting compound growth work

3. Selective Accumulation: During strong downtrends, identify quality mid-cap assets being indiscriminately sold; accumulate via layered purchases as prices decline further; this “buying the capitulation” approach has generated exceptional returns

Advanced Rules to Live By

Trading wisdom in crypto markets distills to these principles:

• Don’t panic sell into strength; don’t chase rallies in weakness; avoid the middle (sideways markets)
• Buy conviction dips; sell overextension rallies
• When peaks are establishing higher lows followed by rallies, hold; when troughs create lower lows, accumulate

The MA5 strategy essentially replaces emotional decision-making with rule-based execution. This systematic approach has transformed retail traders into consistent profit generators.

The Hardest Part: Emotional Discipline

Profitability in digital asset markets isn’t intellectually difficult. Charting reversals, measuring momentum, and timing entries can be learned by anyone in weeks. The actual challenge lies in overcoming two primal emotions: excessive greed and paralyzing fear.

Large green candles tempt overleveraging; large red candles trigger panic selling. Successful traders inoculate themselves against both extremes by pre-committing to a system—like the MA5 framework—before emotion clouds judgment.

The market continuously manufactures optical illusions through volatility. Those who trade impulsively become liquidity for sophisticated participants. Those who execute mechanically according to tested principles consistently extract wealth from these cycles.

Consider this a practical challenge: adopt this moving average method, execute it with rigor for 30 consecutive days, and document the results objectively. Discipline compounds—not just capital, but trading skill.