Net profit of 10 million US dollars in 9 months of contract, trading principles, experience and lessons

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At present, the profit of our Coin real-time contract is close to 10M USD, the profit of the newly opened real-time contract in the past 3 months is 6.3M USD, and my personal record of a single transaction is 7.5M, which won the first place in the team of this Binance Alliance trading competition.

But in fact, my experience is not only in the technical level of contract trading. The purpose of writing this article is to share "teaching people how to fish" without asking for anything in return. I hope it can really help some confused people.

To be realistic, if you are used to tasting the "fish" given by others and don't think about improving yourself, it is likely that you will find it difficult to survive in the trading industry and get results.

New Coin background data/contract profit ranking/Binance 1-year data

40,000 ETH

In fact, the net profit of the 7.5M stop profit of the ETH-Long contract this time is about 5M USD, but nearly 10M funds were mobilized.

Many people are curious about why I still launched a 40,000 ETH position to openly go long during this period when the entire network was criticizing ETH's weak trend and heading for a new low. This position is certainly not for gambling. I partially judged that I had already launched Binance Square, based on multiple factors and ignoring environmental noise:

In addition to this order, in the first half of May, I used only 300K USD to catch 5~6 waves of extreme short selling under the unilateral rising trend of ETH and earned 1M USD. The full real-time records are available for checking on Binance Square and Coin software. This is a limit order + fill order strategy. I will explain it in detail below, which is more worthy of your practice.

Original post record on X

On-chain investment

In fact, for many friends with small funds, I recommend that the early returns of on-chain opportunities will be much greater than contract trading. On-chain has always been the best place to make a small profit with a big investment. All you have to do is to be faster than others, hold on to the target, grasp the target area and then take advantage of the information gap. (For example, the core of Vida's formula strategy is also to make money from the information gap speed)

You need to accumulate a certain amount of capital to make a considerable profit for each contract transaction, and have enough positions to cover your positions, so that you are not easily distracted by all-in gambling. If you only have one chance, you will be the loser in contract trading.

There are even many KOLs who publicly say they don’t touch contract trading and only trade spot goods. I think this is a very wise choice for most people. There are too few people who can get out of contracts, and there are too many things to overcome and too many disciplines to abide by.

For me, the funds I started from scratch also came from the chain, Gamefi in 21, BRC-20 in 23, and MEME in 24. The ever-changing topics on the chain, high-intensity research and the game of bookmaker risks can help you learn a lot of experience and knowledge.

Today’s topic is contract trading, but I will also briefly share some of the hot topics on the chain in this cycle.

Because there are still some contents of length and depth, the document is condensed. Interested readers can read:

https://docs.google.com/document/d/1we5Z8SEfZi4f2TChD48WNYW2Jvg5GNthRj0Pnba8pg0/edit?usp=sharing

ETH's on-chain fundamentals Gwei are currently at zero, which is one of the main reasons for ETH's weak overall performance. But I am still enthusiastic about the future of the chain. If there are interesting DEFI paradigms and gameplay in the future, you are welcome to recommend them to me. I will do research and share my views.

Enter the topic: Principles/experiences/lessons of contract trading

1. Position control, never lose chips, keep them on the table

The details are to observe the volatility of token prices and the bottoming area. For example, if BTC fluctuates only 10% in a month, it is okay to play 30 times short-term. If the price on the gain list fluctuates by 2% in one minute and exceeds 5x, it is dangerous.

Develop the habit of managing your positions by entering the market in stages;

Make a habit of placing a stop-loss order before going to bed to prevent black swans;

Full-time trading with debt is strongly not recommended;

At this time, your psychological pressure will make it more difficult for you to overcome human weaknesses, which is a minus card in trading. It is recommended that you first repay the loan with a down-to-earth regular job and career, improve your cognition during this period, invest with spare money, learn to make friends with time, don't rush, if you are not successful at 30, then wait until you are 35, if you are not successful at 35, then wait until you are 40, and be bold to plan your life.

2. Know yourself and know your enemy, and you will never be defeated in a hundred battles.

My habit is to make multi-factor judgments and have sufficient understanding of all the macro news/trends/underlying fundamentals of the currency.

For example, I posted an open shorting strategy for $NXPC on Coin on June 13. I disclosed all my research-based insights and various market changes, as well as my segmented strategy. Even though I said that the momentum was strong due to the Tencent acquisition expectation, I also disclosed the underlying logic and shorted the stock in batches. I wanted to set an example. Under normal circumstances, you need to wait until the buying power of the acquisition expectation weakens before entering the market.

This kind of trading based on cognition will remain weak even if the market falls today.

3. Stop-profit and stop-loss are as important as judging the trend and are core trading qualities

4. After mastering the basics, practice more, find your own profit formula and give full play to your strengths

Ultra-short-term, short-term, mid-term, on-chain, long-term. You should summarize the factors that often generate profits, and use time to verify accuracy, grasp the format you are good at to create profits, and don't play what you don't understand or learn in a small warehouse.

For those who like to look at K-line drawing and various indicators, this is only applicable to BTC/ETH that is not affected by special news. Copycats are basically useless, and the concentrated chips can easily be treated as toys by the main players.

But it is recommended to learn these trading indicators and macro indicators for auxiliary judgment of macro trends and key point areas . I follow some high-quality content bloggers on Twitter, such as Current Affairs News - Phyrex/K-line Indicators - Crypto_Painter/Worth Reading for Newbies - Sol That You Can't Understand, etc.

5. Be patient, wait for the best hitting point, and develop a psychological expectation of getting rich slowly

It is more recommended to accept limit orders rather than market orders.

It is strongly recommended that after learning how to judge the price points, you should place limit orders at various points that seem to be out of reach in the short term. These orders are often very profitable and have a very high winning rate.

I have seen too many people who want to get rich overnight and open orders and engage in PVP randomly, and they all left. You must learn to make friends with time. The annualized return of 8% in traditional finance is already amazing. Do you think it is difficult to achieve a stable return of 30% without liquidation? For example, the spot price of BTC has increased by 7 times in the past 23 years. The super cycle of blockchain in 3-4 years is completely suitable for friends with considerable funds.

“Place orders based on opportunities to gain big returns with a small investment, rather than placing orders with the intention of making money in mind.”

6. Avoid counter-trend orders for influential tokens

For example, even if TRUMP has a high market value, I will not go short, because TRUMP's orders may explode at any time, just like this TOP HOLDER gathering

For example, even if the fundamental difference of ETH on-chain data GWEI is almost 0, I will not short it during this period, because the Grayscale equity pledge ETF will have results at any time after 6.2, and BlackRock ETF has had huge net inflows for more than ten days;

For example, if there is news about TRX's IPO, first determine whether the source of the news is true or false and whether there is a possibility of a reversal. If there is a possibility of a reversal, do not easily enter the market.

7. Coins that are not included in the gain/loss list due to non-event impacts

Those who like to fantasize about a token that will increase by 50%-100% in a day and then make a profit, in fact, 90% of them will lose money, because you cannot hold on to this kind of volatility, and the dealer has strong control and draws lines at will.

The best way is to observe the historical data of the benchmark, the style and cycle frequency of the MM. The periodic surges and plunges are basically the bands of the main MM. You can ambush in the bottoming area instead of chasing after the surge.

If the negative rate exceeds -2% and the settlement is completed in 1 hour, the winning rate of long orders will be greater than that of short orders. However, in this case, we have also encountered the situation where the spot price continues to rise and the contract OI falls. Be careful. There is a lot of knowledge here and I need to explain it in detail later.

In addition, don’t go short if there is a sudden increase in the price of a coin that is about to be delisted. Most of the time, the exchange is empty. If the price crashes, the exchange will pay the counterparty, so it will go sideways until it is delisted and liquidated. (There was one such case in the past two months)

8. Binance Spot New Coin Short Orders Have a 90% Winning Rate Strategy

I have published the following strategy, or you can learn from Twitter Muchuan's matrix short play and short the entire altcoin. Many people do this for fun, but in fact, it is completely effective based on the data.

6-6 New Coin Strategy for Coin

9. Any real trading results from experts, including mine, can only be used as a reference for trends. They cannot be used as the basis for you to go all in or as a long-term judgment.

10. On the basis of 3, when you are absolutely sure and in a good position, forget about 1, stick to 2, and go all in when it’s time to go all in.

11. There is no genius in contract trading

Including me, not either.

I am just a person who has fallen down countless times and stood up again. (Do you feel more confident?)

From 2022 to now, I have 70 emails from Binance’s Liquidation Call in my mailbox

PS: But unfortunately, I am still a genius because of "confidence, calmness and decisiveness".

But below I can introduce my original " margin call flow" to make margin call valuable.

My liquidation orders fall into three categories:

① Use small funds to play with all situations and targets, confront the market/dealers head-on, explore the underlying logic, main motivations and profit points. These margin calls have helped me summarize a lot of valuable experience.

When I look at any market, even if it is a very clear situation, it will be divided into many possibilities. I can have a response plan for any situation that occurs. (It is also true that you must set a black swan stop loss before going to bed)

For example, you can see my real trading at 5/22 01:00 UTC+8, BTC continued to hit new highs, but ETH inexplicably reversed the needle, I received a 5M U heavy position at the average price of 2468, and made a profit of 3M U at the high point of 2730 (it was a pity that I didn’t stop profit at that wave, which was my biggest mistake this year). But this operation of receiving the needle was the result of my valuable experience, coupled with the limit order flow recommended above . It is more representative than the subsequent lowest point copying, because BTC was soaring at that time

② When holding a large order, open a [100X paper reverse order] specifically for a margin call to sacrifice to God.

Do you often feel that you are most likely to blow up your account when you open a high multiple? Then open a reverse 100X paper order .

Do you often feel that you lose more than you win? Then open more 100X reverse paper orders .

There is an old saying that goes, do your best and leave the rest to fate.

When we have used all the available technologies, what else can we do?

Then balance your own fortune manually, and wins and losses can be calculated according to the number of times.

So why not sacrifice a few reverse paper orders to increase your chances of winning the main order?

Salute to the law of conservation of energy!

12. Become a great trader

Some people may think that traders who earn hundreds of thousands, millions, or tens of millions of dollars are successful traders, and even praise and worship the behavior of the whale James Wynn.

I beg to differ.

When a person embarks on the road of trading, he should not regard himself as a future prodigy, but should carefully recognize his own bottleneck and set reasonable expectations. Whether you earn 100,000, 200,000 or 500,000 through hard work, as long as you can effectively improve your life and make your family around you live better.

In my eyes, that is a successful, great trader.

After all, as long as your USDT is still in your account balance,

"Then this order has not been closed yet."

I wish you success, trader.

Sector:

Smart Contracts

Layer 1

Halving Tokens

Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.

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