From Primary Investment to Independent Trading: A Crypto Trader's Growth Journey

At the beginning of 2021, when the platform tokens of major exchanges were at the peak of speculation, Raxy entered the cryptocurrency industry. He initially got involved in GameFi projects and then moved into venture capital, working at several well-known institutions.

During his more than two years in venture capital, Raxy conducted in-depth research on hundreds of projects. At the beginning of this year, he decided to leave the VC industry and systematically learn and practice trading, transitioning from a primary market investor to an independent trader.

Raxy's trading journey began with losses. After a surge in Bitcoin at the beginning of the year, he attempted to trade altcoins using traditional "valuation nesting" logic, which involves looking for similar backgrounds and reasonably valued targets in the secondary market based on the popular tracks and valuations in the primary market. This method initially brought some gains, but starting in March, the market experienced unusual changes.

By analyzing the market share of Bitcoin and USDT, Raxy realized that the profitability of altcoins has significantly increased in difficulty. He reassessed his trading strategy and ultimately concluded that in the cryptocurrency market, Bitcoin is the most suitable asset for full speculation.

Currently, Raxy manages approximately 2 million dollars in funds. His asset allocation strategy is clear:

1. Invest 80%-90% in the spot market, using the Turtle Trading method combined with key moving average indicators to capture market trends.
2. The remaining 10%-20% is used for contract trading, mainly relying on traditional chart pattern analysis and some technical indicators to assist in decision-making.

Through continuous practice and adjustments, Raxy has gradually developed a trading style that suits itself and can flexibly respond to market changes.

Moving Average Trading Strategy

Raxy believes that the market structure can be divided into two types: oscillation and trend, which continuously convert between each other. He primarily employs a moving average system centered around EMA (Exponential Moving Average), with a particular focus on EMA20 and EMA200, supplemented by technical indicators such as MACD, RSI, and SRSI to confirm the trend.

His specific operational rules are:

1. When EMA20 crosses above EMA200, it is considered a buy signal.
2. Sell when EMA20 crosses below EMA200.

The advantage of this strategy lies in its simplicity and clarity, requiring no complex analysis or subjective judgment, which can help avoid being affected by market noise and emotional fluctuations. However, moving average trading also has its drawbacks, as it can produce frequent false signals during choppy market conditions.

Altcoin Trading Strategies

For altcoins, Raxy believes that the moving average strategy can still be referenced, but its effectiveness is relatively poor. He considers the daily EMA20 as an important reference indicator:

1. If altcoins fail to break above the daily EMA20, usually no large operations are conducted.
2. Only when the daily EMA20 is rising or has been broken, should we consider trading according to the moving average rules.

Raxy emphasizes that trading pairs of altcoins require higher standards for profit-taking and position management, necessitating precise judgment and strict control. He prefers to use daily charts to guide operations in order to reduce the complexity brought about by hourly charts.

Turtle Trading Method and Indicator Selection

The Turtle Trading Method is a strategy suitable for market environments with clear trends and less noise. Raxy combines the Turtle Trading Method with moving averages, primarily relying on moving averages. He chooses simple and common indicators such as MACD and trading volume, avoiding excessive complexity.

"Topping" Strategy

Raxy places special emphasis on the SRSI indicator:

1. When the SRSI shows a death cross, adopt a defensive strategy to reduce positions.
2. Consider re-establishing a position when the SRSI shows a golden cross.

He will also observe the behavior of large holders, such as when they stop buying in large quantities in the spot market, which may indicate a weakening of upward momentum.

Trading Insights

Raxy shared some important trading insights:

1. Avoid setting unrealistic integer level targets.
2. Respect the trading system signals and allocate positions reasonably.
3. Different strategies should be executed in different accounts to avoid confusion.

He also summarized six points of trading mentality:

1. Trading is a highly challenging field that requires continuous learning and adaptation.
2. The core of secondary market trading is position management.
3. There is no perfect trading strategy; methods must be adjusted according to market phases.
4. Mature traders will learn "subtraction," no longer fantasizing about getting rich quick, and they will not overly fear losses.
5. Adapting to the trend can improve the success rate of trading.
6. Opportunities always exist; the key is to maintain consistency in the market.

Finally, Raxy emphasizes that finding a trading strategy that matches one's personality and continuously adjusting the relationship between oneself and the strategy is the key to becoming a successful trader.