"Bro, this position is about to be liquidated." One day in July, a friend said this right away.

After seeing his screenshot, I was shocked—I saw an unrealized loss of 800,000. At that moment, I realized he still hadn't truly understood how to survive in the crypto market.

The remaining principal was only 10,000 yuan. He still held an Ethereum short position worth 2,900 yuan. I made a quick decision: "Cut it." At that time, Ethereum was at 3,200, just the beginning of the bull market buildup. A short position in this kind of market? It would definitely be liquidated and wiped out.

Since he still had 100,000 yuan left, I decided to reverse the position—go long. But the key wasn't the direction, it was the method. I had him follow my plan, strictly planning each trade's position size, profit targets, and drawdowns. I monitored his account almost every day, trading with him and teaching him risk management.

From July to now, he went from 100,000 to 2 million. The market indeed provided opportunities, but the core was—using the right method to avoid another liquidation.

This approach can be summarized into three key actions:

**Step 1: Divide the principal into three bullets**

Sniper position (30%, 3,000 yuan): Only follow divergence and volume surge signals on 15-minute charts. Take 20% profit and close immediately, avoiding chasing the tail of the trend.

Flexible position (50%, 5,000 yuan): When the market drops 20%, add to the position in batches; when it rebounds to a 10% gain, sell half of the holdings. This way, the average cost is about 12% lower than the market price, acting as a built-in safety cushion.

Lifeline position (20%, 2,000 yuan): Always only hold stablecoins, never touch other assets.

**Step 2: Profits are not for gambling, but for exponential growth**

The first trade earned 1,500 yuan; 50% of that goes into the flexible position to add firepower, 30% into the lifeline position, keeping the principal unchanged. When the account reaches 150,000 yuan, those profits become new attack bullets.

When hitting resistance levels, leverage can be increased up to 50x, but every 15% rise, 8% of the profit is taken into the lifeline to lock in gains. Before 11 pm every night, forcibly close 70% of positions—this rule helped him avoid missing out 8 times over the past month.

**Step 3: Add a human risk management layer**

After winning two trades in a row, cut leverage in half and halve the position size. If daily losses reach 10% of the account, stop trading for three hours and write a forced trading review.

This is the complete logic that turned unrealized losses into profits.

If you're also on the path to recover your funds, ask yourself: do you want to earn steadily within your knowledge scope, or are you still hoping for one big reversal at the end?

Opportunities in the crypto space do exist, but only with the right method. Spend a few minutes seriously understanding this approach—it can truly change your trading career.