Believers in probability, do not become emotional leeks.

Recently, I was chatting with a seasoned trader, and his eight-figure account assets left me speechless instantly. Flipping back through his account records, guess what—nine years ago, his starting capital was only 5,000 USD. Over the years, I’ve seen countless people blow up their contracts and go broke overnight, but his asset curve remains remarkably steady, with a maximum drawdown never exceeding 8%, while profits snowball and keep climbing.

That day, he smiled and said: "Don’t play with gamblers chasing highs and killing lows; learn to deal with probability."

That sentence hit me hard at the time. Today, I’ll break down the three core methodologies I learned from him.

**First Trick: Lock in profits immediately "to secure gains," preventing compound gains from turning into compound losses**

His trading logic is very clear: "As soon as the profit reaches 10% of the principal, withdraw half to a cold wallet to lock in gains, and continue trading the remaining 'free money'."

The brilliance lies here—he can enjoy the benefits of compound growth while insuring the principal. For example: if your principal is 10,000 USD, and it grows to 11,000 USD, you withdraw 500 USD to a cold wallet to lock in profits, leaving 10,000 USD principal plus 400 USD floating profit to continue trading. Even if subsequent trades fail and wipe out the remaining funds, you’ve safely earned 500 USD, with your principal intact.

He used this method to withdraw 180,000 USD in a single week, even going through full identity verification at the exchange. In contrast, greedy traders who refuse to take profits end up not only giving back their gains but also losing their principal. That’s the difference—markets never lack the next wave; what’s missing is the principal to survive until the next opportunity.

**Second Trick: Use "displaced orders" in choppy markets, earning interest rate differentials while others blow up**

He excels in highly volatile markets. The specific method is to open opposite positions at high and low points, exploiting market whipsaws for arbitrage. When the price oscillates within a certain range, setting short positions at the high and long positions at the low turns volatility into steady income. The key is to keep each position small—only 3-5% of total capital per trade. It’s better to open multiple small trades than to go all-in on one.

This method is especially effective during certain periods in crypto markets, particularly in sideways, high-volatility cycles with no clear trend.

**Third Trick: Always remember "drawdown management"—don’t wait until liquidation to regret**

He never allows his account to draw down more than 8%. This number may seem conservative, but it’s actually the golden ratio for risk management. When approaching this limit, he will decisively reduce leverage or lower his position size. Many people think this is too cautious, but in fact, it’s the key to surviving the market longer.

The appeal of crypto markets lies in high returns, but high returns inevitably come with high risks. Learning to respect drawdowns and stop-losses is essential to profit from probability, not just luck.