Introduction: Patience to read through or overturn your understanding, the contract market earns money whether professionally or not; are you standing in the professional queue or the retail queue?
Before the introduction, it is essential to mention a key concept to describe
“Life and death (profit and loss) are within a moment; profit and loss are determined by me, not by heaven”
“Nothing belongs to me, but everything is for my use”
1. Using the above words to describe, I cannot control the rise and fall of the market, but in the fluctuations of the market, I can grasp control during reversals; this is the typical synonym for going with the trend.
2. The entire process of trading is actually very simple: it is about waiting, waiting for money to fall on the ground, picking it up and putting it in your pocket, and then continuing to choose to wait, repeating this cycle. How many people can truly achieve such simple reasoning?
What are the key factors that determine the core level between life and death, that is, between profit and loss?
In the trend is king, when going with the trend, risk control and trading systems become even more important, perhaps surpassing the two core elements of the technical aspect and news aspect! Profit and loss are common, but seeking a balance amidst profit and loss is controlled by risk management and the trading system. So how to create a balance between 'profit and loss'? We will discuss this in detail below!
There are only two ways to achieve stable arbitrage in this market:
1. Like a certain big shot, enter the market to buy the dip within reasonable risk control before a bull market surge, continuously hold positions and wait for the bull market dividend period to end before unloading, after a round of increase directly ranks among the big shots!
2. The four elements are:
Risk control, news, technology, and trading systems are four elements that complement each other, cycling endlessly!
（1）Risk control: Relevant win rate +50%
（2）This is one of the key ways of the contract, and this market must achieve: “Advance to gain, retreat to defend.” Based on the trading system, if the stop loss is 200 points and the profit is 1000 points, then with a 50% win rate your result is:
5*200=1000 points 1000*5=5000 points-1000=4000 points
This kind of operation is moderate in advance and retreat, with both losses and gains, allowing for a stable arbitrage of 4000 points, which is a 10X harvesting space, based on no additional news and technical aspects!
An example of the opposite side of the importance of risk control:
Out of 9 times, one error without a stop loss directly results in zero! Similarly, the second method is not operable in 10 operations!
News aspect: Relevant win rate +20%
The news aspect is often the most critical, such as CFX Hong Kong concept coins, Bitcoin halving, FTX news, etc. Therefore, news is a signal for a bull market, and also a rallying call, which can instantly reverse the dominance of a certain token! Thus, the interpretation of the news and macroeconomic factors, as well as relevant news affecting Bitcoin and the timeliness of that interpretation, are also of utmost importance!
Technical aspect: Relevant win rate +10%
The technical aspect resolves issues such as relatively low buying points, relatively high selling points, and trend judgments, thus the technical aspect addresses these problems. Therefore, many technical instructors can talk eloquently but lack practical applicability!
Trading system: Relevant win rate +10%
This is a trading system that has taken shape; this system directly determines the success or failure of risk control! Not much more to say here!
The remaining mentality accounts for about 9.99%, constituting the arbitrage system! This arbitrage system is very stable and has been tested effectively. According to a frequency of 5 trades every 7 days each month, with a 50% win rate, the stop loss is 2000 points, take profit at 10000 points, profit 8000 points, with a conservative monthly return rate exceeding 10 basis points! Currently, the recovery plan in the trading room is in full swing... with a stable return rate of over 10 basis points each month, never reaching the break-even point!
Warm reminder: The four elements mentioned above have been meticulously crafted into an arbitrage model by the trading room over three years. This model has been comprehensively developed by the instructors in the trading room and includes the following: risk control team, trading system team, news decomposition team, technical analysis team, on-chain major tracking team, big data decomposition team, instructor assistant team, customer service team, etc...