The correct way to play the 100x contract in the cryptocurrency circle (useful content)

Most of the players in the cryptocurrency circle have relatively small funds, so they will choose high-multiple contracts to quickly expand their funds. Since most players open contracts just like guessing the size, winning or losing depends entirely on luck, I have specially written a full article on the correct way to play cryptocurrency contracts to share with you. After reading this article, you can greatly reduce the probability of loss in high-multiple contracts and greatly increase the profit rate and winning rate of contracts. I hope you can share this article with your friends who do contracts around you, so that more people can know the correct way to play contracts. Remember to like and follow me!
1. When we are doing transactions and contracts, we need to use professional market-watching software: tradingview (TV for short, free software). TV is currently recognized worldwide as the strongest and most practical market-watching software. The indicators in it are very comprehensive and the overall K-line is very clean. I personally think that the interface of TV is currently too weak to play the K-line and indicators of any exchange, so I suggest that everyone should learn to use excellent tools to watch the market, rather than being confused by the K-line of the exchange.
TV has a great advantage, which is that it can simultaneously see the dynamics of the US stock market, which can be more relevant. When I was using TV to monitor the market, I encountered many flash crashes in the US stock market and the cryptocurrency market also flashed down within one or two minutes. Therefore, TV is also very advantageous in terms of information gap. When the US stock market flashed down, I could close my position one or two minutes in advance of others to minimize the risk. At least TV helped me avoid the risk of multiple liquidations in this regard, especially last year, several major market trends started with flash crashes in the US stock market, and I also observed the news of the flash crash on TV and then closed my position and chose to wait and see.
2. I have written in previous articles that when I was doing contracts, I used three commonly used indicators: automatic divergence V4, MACD, and RSI. You can check out my previous Weibo posts.
3. What I am going to say next is very important. You must read it very patiently, as it directly affects the winning rate and income of contract players.
⑴: We try to choose the top and bottom of MACD to make orders. Although the top and bottom of MACD are not 100% winning, if you choose the top to short, then your order price is relatively high. On the contrary, if you choose the bottom of MACD to long, your relative price is low. There are three advantages to doing this: First, the relative price, because the bottom of MACD means that at least the current volume has been relatively weak, and the possibility of a change in the market will be greater; second, your relative position price is more appropriate, which is equivalent to increasing the margin in disguise, which can move the forced liquidation price backward. Third, it can maximize the profit margin, because of the relative price advantage, you can get more floating profit than others!
Here is a picture. You can observe the MACD indicator in the picture. You will find that the trend will gradually go down after the high point of MACD turns from light blue to dark blue, so try to choose the high point of MACD to go short. On the contrary, when the price gradually goes up during the process of MACD turning from red to dark red, try to choose to go long.
⑵: We try to choose to open an order after the divergence line, because the possibility of a change in the market after the divergence line is also very high. From the beginning of June to now, the data I have calculated is that after the divergence indicator given by the 15MIN K-line chart, there is a probability of more than 75% of a change in the market. That is to say, if a top divergence occurs, there is a three-quarter probability that the market will fall next. So can we say that "the winning rate of choosing to open an order after the divergence has reached 75%?"
⑶: When MACD is at the bottom or top, the indicator gives a divergence. With the support of the dual indicators, the winning rate of the order can reach a very terrifying winning rate.
4. Here I want to make one point clear: indicators cannot guarantee you 100% victory. The role of indicators is to choose better and more appropriate order opening points according to existing conditions. Through indicators, we can open orders at relatively high or low prices. For example, when the indicator reflects that the current rise is very strenuous and the volume is also reduced very sharply, then the winning rate of our choice of short selling here must be greater than that of long selling. Even if there is a sudden pull-up after the volume is reduced and the rise is strenuous, it is a very rare case. In most cases, the price will fall after the volume is reduced and the rise is strenuous!
5. Assuming that we can stabilize the winning rate at 55% through the optimization of indicators, then our profit rate after opening 100 or 1,000 orders will also be very exaggerated. This is why many people choose to do quantitative contracts, because by constantly optimizing their own indicators and parameters, as long as the winning rate can be stabilized at more than 53%, the long-term profit rate of orders is very good.
6. Many people may not understand why a 53% winning rate is required; because of the existence of handling fees, if you do not use any indicators and only rely on guessing the size to make contracts, even if your winning rate is 50%, then after 20-30 orders, the handling fees will make your principal return to zero!
7. Many people may like to open orders with the support of news, but a big problem with news is the lag. Often you can only know the news after the market has been pulled up or smashed, and you can only rely on your feelings and guesses to know how much impact the news can have on the market. However, the indicator will give a very reasonable range at this time. For example, when bad news appears, the market plummets. Through the indicator, we can observe at which position the volume begins to shrink and at which position the buying power begins to be greater than the selling power. In this case, we choose to go long at this time and the success rate of taking advantage of a rebound is the highest.
8. When doing contracts, you must study and learn indicators. Although indicators cannot make you 100% successful, they can greatly improve your winning rate. At least indicators can help you get rid of the blind guessing link! Many people may argue that "if indicators are useful, everyone will be a billionaire." What I want to say is: indicators are not static. From the beginning of June to now, I have adjusted the indicator parameters I use more than a dozen times. According to the market and trend, the indicator parameters must be adjusted to the appropriate position. For example: MACD now uses the default parameters, fast line 13 slow line 34, but the most suitable parameters yesterday were fast line 12 slow line 19. Use TV's strategy tester to backtest the best parameters according to different market conditions and different sideways time to open orders.
My chat group is open to everyone for free. You can come and chat to kill time. If you want to recruit people to make money, don't join my group. The answerers in my group have been trained by me to be very smart. Your tricks can only add fun to the water friend group.
Finally, I want to complain a little: it is not shameful to pay for knowledge, there is no free lunch in the world, I have provided technical guidance and training to many friends for free, but in the end they still choose to trust their own judgment, because free things are really not good. For example: I asked to get on the BCH at 252, but no one listened, and asked if I could get on the BCH at 300. For example: I sent all my orders for opening positions in Litecoin at 100 to the group, and asked if I could get on the BCH at 110...
⑵: We try to choose to open an order after the divergence line, because the possibility of a change in the market after the divergence line is also very high. From the beginning of June to now, the data I have calculated is that after the divergence indicator given by the 15MIN K-line chart, there is a probability of more than 75% of a change in the market. That is to say, if a top divergence occurs, there is a three-quarter probability that the market will fall next. So can we say that "the winning rate of choosing to open an order after the divergence has reached 75%?"
⑶: When MACD is at the bottom or top, the indicator gives a divergence. With the support of the dual indicators, the winning rate of the order can reach a very terrifying winning rate.
4. Here I want to make one point clear: indicators cannot guarantee you 100% victory. The role of indicators is to choose better and more appropriate order opening points according to existing conditions. Through indicators, we can open orders at relatively high or low prices. For example, when the indicator reflects that the current rise is very strenuous and the volume is also reduced very sharply, then the winning rate of our choice of short selling here must be greater than that of long selling. Even if there is a sudden pull-up after the volume is reduced and the rise is strenuous, it is a very rare case. In most cases, the price will fall after the volume is reduced and the rise is strenuous!
5. Assuming that we can stabilize the winning rate at 55% through the optimization of indicators, then our profit rate after opening 100 or 1,000 orders will also be very exaggerated. This is why many people choose to do quantitative contracts, because by constantly optimizing their own indicators and parameters, as long as the winning rate can be stabilized at more than 53%, the long-term profit rate of orders is very good.
6. Many people may not understand why a 53% winning rate is required; because of the existence of handling fees, if you do not use any indicators and only rely on guessing the size to make contracts, even if your winning rate is 50%, then after 20-30 orders, the handling fees will make your principal return to zero!
7. Many friends may like to open orders with the support of news, but a big problem with news is the lag. Often you can only know the news after the market has been pulled up or smashed, and you can only rely on your feelings and guesses to know how much impact the news can have on the market. However, the indicator will give a very reasonable range at this time. For example, when bad news appears, the market plummets. Through the indicator, we can observe at which position the volume begins to shrink and at which position the buying power begins to be greater than the selling power. In this case, we choose to go long at this time and the success rate of taking advantage of a rebound is the highest.
8. When doing contracts, you must study and learn indicators. Although indicators cannot make you 100% successful, they can greatly improve your winning rate. At least indicators can help you get rid of the blind guessing link! Many people may argue that "if indicators are useful, everyone will be a billionaire." What I want to say is: indicators are not static. From the beginning of June to now, I have adjusted the indicator parameters I use more than a dozen times. According to the market and trend, the indicator parameters must be adjusted to the appropriate position. For example: MACD now uses the default parameters, fast line 13 slow line 34, but the most suitable parameters yesterday were fast line 12 slow line 19. Use TV's strategy tester to backtest the best parameters according to different market conditions and different sideways time to open orders.