This is a very important and core issue. In the crypto derivatives market, "cognition" is your only moat, directly determining whether you become "fuel" or a minority winner.

Improving derivative cognition is not about learning a few indicators, but about establishing a complete system from macro to micro, from psychology to execution. Here is the layered progression path:

1. Basic Layer: Understand Your Battlefield (Avoid Foolish Mistakes)

1. The essence of derivatives is "gambling" and "leverage":
· You are not "investing" in an asset, but "trading" price fluctuations and probabilities. Leverage amplifies gains and losses, and also magnifies human weaknesses.
· Deeply understand funding rates, margin, liquidation price, and mark price. These are your weapons and armor. Don't go to battle if you don't understand them.
2. Risk First, Profit Second:
· Single trade loss limit principle: in any trade, maximum loss must not exceed 1%-2% of total funds. This is an iron law.
· Total position risk exposure: do not expose excessively high risk across multiple trades simultaneously.
· "Surviving" is 100 times more important than "making quick money." One liquidation to zero ends the game.

2. Technical Layer: Build Market Reading Ability (Seek Probability Advantage)

1. Go beyond indicators, understand structure:
· Don't indulge in searching for the "Holy Grail Indicator." Learn market structure: identify support/resistance, high and low points (HL/HH), trendlines, channels. This is the skeleton of the market.
· Master volume analysis (Volume Profile, Order Flow): prices can deceive, but volume is harder to fake. Identify true breakouts with increased volume and false signals with decreasing volume.
2. Multi-timeframe analysis:
· "Use larger timeframes to set direction, smaller timeframes to find entry points." Look at trends on daily/weekly charts, find entry timing on 1H/4H charts, manage trades on 15-minute charts.
· Avoid "seeing only the trees and not the forest."
3. Understand Market Participants and Narratives:
· The crypto space is driven by "narratives" and "liquidity." Know what story the current market is telling (ETF, halving, Layer2, Meme season, etc.).
· Pay attention to whale addresses, exchange flow, fear/greed index, and feel the market sentiment.

3. Strategy Layer: Build Your Trading System (From Random to Ordered)

1. Systematize, eliminate emotions:
· A complete system includes: Market analysis → Entry conditions → Position sizing → Stop-loss setting → Take-profit strategy → Exit conditions.
· Write down your rules and execute them like a machine. Your system must be validated through historical data (backtest) and simulated trading.
2. Diversify Strategy Cognition:
· Trend following: follow the trend in clear trend environments, "eat the fish" in the middle of the trend.
· Range trading: buy low and sell high within consolidation zones.
· Breakout trading: wait for key levels to be broken and follow up.
· No strategy is forever effective, only the ones that fit the current market conditions.