The Ultimate Simplification of Trading: Why I Abandoned All Technical Indicators?
After being tormented by RSI, MACD, and various complex candlestick patterns for a long time, I decided to clear all indicators and return to the fundamental logic of price action. I will share a trading system I created, based on "mean reversion" and "volatility balancing":
1️⃣ Finding "Physical Anchor Points"
No longer predicting the future, only respecting the past. Using the highest point within 24 hours as the market strength's "physical anchor point." By setting a fixed percentage of retracement to determine the first position, avoiding emotional random fluctuations.
2️⃣ Dynamic Evolution: 4h Window Correction
The market is alive, and the strategy cannot be dead. Introducing a "dynamic anchor point" mechanism, when the market's center of gravity shifts downward, the entry benchmark will automatically lower with recent local highs, preventing the "carving the boat to seek the point" in a declining trend.
3️⃣ Beta Linkage Verification
Do not look at the target in isolation. Using the overall market (BTC) as a safety valve, verifying the effectiveness of individual coin declines through correlation coefficients, filtering out meaningless noise.
4️⃣ Asymmetric Averaging Art (Six/Eight Levels Method)
Acknowledging that humans cannot accurately predict the bottom. By using a geometric series for averaging logic, continuously adjusting the cost line during the decline. Essentially, this is exchanging space for time; as long as the market shows a 1% - 2% volatility reversion, one can exit with full profit.
5️⃣ Trading Philosophy: Forget Prediction, Manage Probability
Technical indicators are retrospective, while capital management and retracement logic are a priori. The core of this strategy is no longer about "guessing up or down," but about "handling volatility." As long as the market is still fluctuating, this system is an ever-running money printing machine.
#Crypto #TradingStrategy #SOL #交易心得
After being tormented by RSI, MACD, and various complex candlestick patterns for a long time, I decided to clear all indicators and return to the fundamental logic of price action. I will share a trading system I created, based on "mean reversion" and "volatility balancing":
1️⃣ Finding "Physical Anchor Points"
No longer predicting the future, only respecting the past. Using the highest point within 24 hours as the market strength's "physical anchor point." By setting a fixed percentage of retracement to determine the first position, avoiding emotional random fluctuations.
2️⃣ Dynamic Evolution: 4h Window Correction
The market is alive, and the strategy cannot be dead. Introducing a "dynamic anchor point" mechanism, when the market's center of gravity shifts downward, the entry benchmark will automatically lower with recent local highs, preventing the "carving the boat to seek the point" in a declining trend.
3️⃣ Beta Linkage Verification
Do not look at the target in isolation. Using the overall market (BTC) as a safety valve, verifying the effectiveness of individual coin declines through correlation coefficients, filtering out meaningless noise.
4️⃣ Asymmetric Averaging Art (Six/Eight Levels Method)
Acknowledging that humans cannot accurately predict the bottom. By using a geometric series for averaging logic, continuously adjusting the cost line during the decline. Essentially, this is exchanging space for time; as long as the market shows a 1% - 2% volatility reversion, one can exit with full profit.
5️⃣ Trading Philosophy: Forget Prediction, Manage Probability
Technical indicators are retrospective, while capital management and retracement logic are a priori. The core of this strategy is no longer about "guessing up or down," but about "handling volatility." As long as the market is still fluctuating, this system is an ever-running money printing machine.
#Crypto #TradingStrategy #SOL #交易心得