The seventh day of the real account.

I once did a hundred times real trading for half a year. 1 I used leverage of ten times to twenty times or more each time. 2 I often entered the market early. 3 I held onto positions with reverse operations. A few years ago, during that hundred times real trading, I also held a short position on Ethereum, from 2500 to 4000. Because I used high leverage, I ended up not sleeping for more than a month, day and night trading. I pulled the liquidation price from 3000 all the way up to over 4000, and in the end, I was just a few dollars away from being liquidated, dropping directly from 4000 to 2000. That time I relied on luck to complete the hundred times, and after that, it continued to drop to zero.
What does it explain? When a black swan event occurs, you cleverly use technology and luck to ultimately overcome the market. Whether you win several times or not, as a long-term trader who often mingles in the market, there will always be a time when a black swan event comes. No matter how much technology you have, it is difficult to escape unscathed.

So I am now reducing leverage from several dozen times to a few times, which at least reduces the risk tenfold compared to the last time of a hundred times real trading. I have changed my previous approach of entering the market early to waiting, waiting for a better position to avoid unnecessary holding positions. I will enter the market when the conditions are indeed favorable, further reducing risk. Combined with improvements to my trading system and tactical enhancements, I no longer pursue monthly returns of several hundred percent, but instead set a monthly target of 30%, aiming to use the profits to reach 60% after achieving the goal. I will no longer rely on luck to achieve a hundredfold return but rather aim for a feasible approach through time cycles.

In these seven days of real trading, the direction was not right, but by using small leverage and maintaining ultra-high liquidation, I aimed to protect the principal in the most stable way, combined with pinbar2. Naked K, ignoring black swans, to engage in steady arbitrage. Currently, I have a profit of 12%, and my target is 30%-60%. I plan to maintain this for about a year to achieve a hundred times real trading.

A short position of 117,000 was operated for a few days, and finally, I made a profit of 10% by arbitraging at a high of 118,000. I'm wondering if there will be a further increase. After closing the position, I readjusted my holdings and aimed for the next 10% with a small leverage. As for the short position on Ethereum, it's needless to say, I shorted at 3,400, and currently, the position is profitable at 3,600. The leverage is so small that the forced liquidation point is already at 8,000. Most people shorted at 3,300 or 3,400 and might not even profit at 3,500. The reason why my position at 3,600 is profitable is that the leverage is small, which allowed me to control my holdings, arbitrage in between to erase the losses, and continuously lower the cost price.

Overall, in these seven days, the direction has been opposite, but using low leverage has still yielded a 10% return. As I always say, you may not be able to achieve a 100% return using 30 times leverage, but with 3 times leverage, I am attempting to reach a 100% return. First, my risk is ten times lower than yours, and my mindset is completely different. My returns may not be less than yours, and could even be more.

Currently, we are continuously improving the pin bar and naked K techniques. Using these techniques, small leverage can yield miraculous returns. Only with small leverage can we fully utilize our strengths and skills, because when the leverage is high, if a black swan event occurs and there is no room to maneuver, it becomes worthless.

Currently, the market is at new highs, with US stocks continuously reaching new peaks and Bitcoin also hitting new highs. There will always be a wave of deep corrections. Those who are long will make their profits, and those who are short will also have their earnings. It’s important not to overly predict the market, manage your positions well, and when a black swan event occurs, treat bad situations as opportunities to act. This is the essence of trading.

The spot trading is in the watchlist.
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