In the crypto market, some rely on news fluctuations, some are eliminated by emotional swings. But there is another type of trader who, using the simplest approach—strictly following trading discipline—sticks to the end.
I know a seasoned trader whose background is very ordinary, but over a few years, his assets grew to eight figures. His methodology is surprisingly simple: he doesn't chase exciting gains, only focuses on trend signals and risk management.
His core trading framework consists of four steps. It may sound unremarkable, but executing it requires ironclad discipline.
**Level One: Daily MACD as Entry Signal**
The larger cycle determines the direction; the smaller cycle is used to find opportunities. His approach is to lock onto the daily MACD golden cross signal, especially when it occurs above the zero line. Don’t try to compare it with other cycles, and don’t be swayed by short-term news. The daily MACD golden cross confirms the formation of a trend.
**Level Two: The Daily Moving Average as the Boundary for Holding Positions**
After entering the trade, the daily moving average becomes a life-and-death line. If the price stays above the daily moving average, continue holding; if it effectively breaks below, exit immediately—no discussion needed. This may sound like mechanical execution, but precisely this mechanical approach helps traders avoid emotional decisions.
**Level Three: Price and Volume Must Synchronize for a True Entry**
Price signals alone are not enough. You must wait until the price returns to the daily moving average, and trading volume also picks up—that’s the real buy point. After building the position, take profits in stages: when the price rises 40%, sell one-third of the position; at 80%, sell another third; and if the price breaks below the daily moving average, clear out the remaining position. This staged approach allows profits to run while cutting losses promptly when risk appears.
**Level Four: The Next Day’s Stop-Loss Is an Iron Rule**
On the second trading day after buying, if the price falls below the daily moving average, sell all unconditionally. This is the strictest discipline—no matter how good the technicals or how hot the coin, this rule cannot be broken. Only when the trend re-establishes above the daily moving average will you consider re-entering.
Why is this method effective? Because it focuses on one direction: capturing and following the trend. It doesn’t bet on trend reversals, nor chase bottoms; it only takes the most confident segment of the trend. For retail traders, this reduces operational difficulty—you don’t need to predict the future, just follow the signals already formed by the market.
The crypto market has never lacked opportunities for sharp rises and falls; what’s missing is the discipline. Traders who can survive longer and more steadily in the market are often those who stick to the “dumb rules” to the end. On mainstream coins like Bitcoin and Ethereum, this strategy repeats year after year with consistent results. The only difference is that some persist, while others give up by the third month.
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RugDocScientist
· 58m ago
To be honest, this stuff sounds ridiculously simple, but how many people can really stick with it?
View OriginalReply0
ProveMyZK
· 2h ago
That's right, discipline is above all else. I just get too easily scared off by fluctuations.
I can't keep going. I know the rules are correct, but I just have the urge to chase hot topics.
This routine sounds simple, but execution is hell. That's where my weakness lies.
I like the daily moving average death line setup; finally, there's a clear exit signal.
Honestly, the phrase "most people die in the third month" hits hard. That's exactly me.
The four-layer framework seems feasible, but whether it works in real trading depends on the situation.
The hardest part of a dumb rule is not changing the rule. I admit I have changed it.
View OriginalReply0
LiquidationWatcher
· 3h ago
Basically, it's about discipline. Many people can't stick to simple rules—when they see a loss, they want to buy the dip; when prices rise, they want to chase the high.
View OriginalReply0
bridgeOops
· 3h ago
That's right, discipline is essential. I was previously one of those easily swayed by news.
Hmm, this framework sounds simple, but I'm afraid they'll start changing the rules in the second month.
The urge to buy the dip after the daily moving average breaks—who hasn't experienced that?
Mechanical execution is easy to say but really hard to do.
I want to ask, which cycle is this guy trading on? Does the four-hour moving average work so well?
The key is mindset. Not wanting to sell after earning 40%, unable to cut losses, and eventually losing everything.
I think not betting on reversals is brilliant—just take profits when you have a confident position, don't be greedy.
View OriginalReply0
GateUser-beba108d
· 3h ago
Exactly right, you have to follow the rules and not mess around.
In the crypto market, some rely on news fluctuations, some are eliminated by emotional swings. But there is another type of trader who, using the simplest approach—strictly following trading discipline—sticks to the end.
I know a seasoned trader whose background is very ordinary, but over a few years, his assets grew to eight figures. His methodology is surprisingly simple: he doesn't chase exciting gains, only focuses on trend signals and risk management.
His core trading framework consists of four steps. It may sound unremarkable, but executing it requires ironclad discipline.
**Level One: Daily MACD as Entry Signal**
The larger cycle determines the direction; the smaller cycle is used to find opportunities. His approach is to lock onto the daily MACD golden cross signal, especially when it occurs above the zero line. Don’t try to compare it with other cycles, and don’t be swayed by short-term news. The daily MACD golden cross confirms the formation of a trend.
**Level Two: The Daily Moving Average as the Boundary for Holding Positions**
After entering the trade, the daily moving average becomes a life-and-death line. If the price stays above the daily moving average, continue holding; if it effectively breaks below, exit immediately—no discussion needed. This may sound like mechanical execution, but precisely this mechanical approach helps traders avoid emotional decisions.
**Level Three: Price and Volume Must Synchronize for a True Entry**
Price signals alone are not enough. You must wait until the price returns to the daily moving average, and trading volume also picks up—that’s the real buy point. After building the position, take profits in stages: when the price rises 40%, sell one-third of the position; at 80%, sell another third; and if the price breaks below the daily moving average, clear out the remaining position. This staged approach allows profits to run while cutting losses promptly when risk appears.
**Level Four: The Next Day’s Stop-Loss Is an Iron Rule**
On the second trading day after buying, if the price falls below the daily moving average, sell all unconditionally. This is the strictest discipline—no matter how good the technicals or how hot the coin, this rule cannot be broken. Only when the trend re-establishes above the daily moving average will you consider re-entering.
Why is this method effective? Because it focuses on one direction: capturing and following the trend. It doesn’t bet on trend reversals, nor chase bottoms; it only takes the most confident segment of the trend. For retail traders, this reduces operational difficulty—you don’t need to predict the future, just follow the signals already formed by the market.
The crypto market has never lacked opportunities for sharp rises and falls; what’s missing is the discipline. Traders who can survive longer and more steadily in the market are often those who stick to the “dumb rules” to the end. On mainstream coins like Bitcoin and Ethereum, this strategy repeats year after year with consistent results. The only difference is that some persist, while others give up by the third month.