The speculative entry and spiritual awakening of Digital Money contract traders

In the vast universe of Digital Money contract trading, there is a widely accepted "80-20 rule". It is like an invisible boundary, dividing traders into two major camps. The 20% elite traders, like the dazzling stars in the night sky, stand tall in the turbulent market and harvest enviable wealth with superhuman wisdom and decisive decision-making. The remaining 80% of traders are like ships adrift in the boundless sea, constantly searching for the faint light that guides them forward.

In this sea full of unknowns and challenges, the protagonist of the story has also experienced a long and tortuous exploration journey. He tried to insight into the future market trend through fundamental analysis, but reality was like a cold mirror, reflecting his failures and frustrations mercilessly. He spent a lot of time and energy collecting data such as spot prices, supply and demand balance sheets, and economic environments, but two years of losses were like a loud slap, forcing him to re-examine his trading strategy.

Later, he turned to technical analysis, hoping to capture market turning points by drawing lines and studying technical indicators. However, after a year of hard work, he was still scarred and filled with doubts and frustrations. He began to wonder if these technical indicators and technical charts could really give him an edge in trading.

In despair and confusion, he tried fund face analysis again, trying to judge the future direction of the market by the changes in positions and trading volume. But the results were still disappointing, and he seemed to be trapped in an unsolvable maze, unable to find a way out.

However, fate always brings about a turning point when least expected. In a chance encounter, he read an interview about successful traders. The trader claimed that his trading method was extremely simple, just a moving average. Initially, the protagonist did not take it seriously, even considering it a fantasy. But out of curiosity and inner dissatisfaction, he decided to try this seemingly simple yet mysterious trading strategy.

He asked his colleagues to help program the code of the moving average strategy and loaded it onto the trend chart of the Digital Money contract trading. When he saw the moving average line shuttle freely on the trend chart, and every intersection was accompanied by a clear opening and closing signal, he seemed to be shocked by a mysterious force. In that moment, he seemed to see the fragments of knowledge he had accumulated over the years in trading being linked together by this moving average line to form a complete and powerful trading system.

He began to realize that the real trading is not about predicting the market trends, but about learning how to deal with the uncertainty after holding a position. Although the moving average trading method is simple, it implies a way of profit that is in line with the essence of the market. When the price trend is above the moving average, he chooses to hold a long position; when the price trend is below the moving average, he chooses to hold a short position. The key to making a profit lies in how to cleverly handle stop-loss when losing and holding a position when making a profit.

To verify the effectiveness of this strategy, he conducted quantitative backtesting. The results were shocking, as this seemingly simple moving average strategy outperformed 80% of traders, and turned out to be a profitable trading method over the year.

He understood that the core of trading is not about predicting market trends, but about how to handle the relationship between risk and return. In order to stand undefeated in the market, one must build their own trading logic and system. From then on, he embarked on a new path of trading, no longer blindly pursuing market predictions, but focusing on how to better deal with the uncertainties after taking a position. He learned to cut losses decisively when incurring losses, and to patiently hold on to profits, allowing profits to naturally run. And all of these changes stem from that seemingly simple yet wise moving average.
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