Understand in 3 Minutes: How to Turn an Exchange into a "Stable ATM"

No need to guess the price direction, no need to stay up all night monitoring charts, and no reliance on luck – the secret lies in a probability trading system built on the principles of risk management, capital discipline, and the mechanism of compound interest. Below are the three pillars of this method:

1. Profit Lock by Compound Interest – A “Bulletproof Vest” for Your Account Each trade order must have a clear stop-loss ( and take-profit ) point. When the profit reaches 10% compared to the original capital, immediately withdraw 50% of the profit to the cold wallet, and the remaining part continues to rotate according to the principle of compound interest. When the market rises, the remaining profits are utilized to “chase the waves” and expand the profit margin. When the market falls, the withdrawn profits become a “safety cushion,” helping traders avoid losing their principal. This method helps maintain long-term stability: even when the market fluctuates sharply, the account still grows along the curve of compound interest and is not wiped out by greed during unexpected drops.
2. Strategy “Build Divergent Position” – Make Money from the Liquidation Point of the Crowd Most retail traders are often liquidated right at the trend reversal point, so an effective strategy is to go against the crowd mentality. The analysis process consists of three time frames: Date frame (D1): Determine the overall market trend. 4-hour frame (H4): Mark strong fluctuation areas and supply-demand equilibrium points. 15-minute frame (M15): Find the exact entry point. Open two parallel positions on the same currency: Order A (Long): Open when the price breaks through the resistance zone, set the stop loss at the nearest bottom. Order B (Short): Open in the overbought zone, with a risk not exceeding 1.5% of capital. When the market is sideways, both sides can generate small profits from fluctuations. When the market explodes in one direction, trend-following orders will expand the profit margins significantly, while counter-trend orders will only incur small losses within acceptable limits. This strategy helps maximize the winning probability, turning volatility into opportunity rather than risk.
3. Cutting Losses is Great Profit – Accept Small Losses to Win Big Each stop-loss order is not a failure, but a “ticket to the next win.” In probability trading, maintaining a profit/loss ratio higher than 2:1 is a matter of survival. The principle is very clear: Each small loss order is the cost to maintain a position in the market. Each large profit order is the reward for discipline and patience. The key lies in keeping risks low, allowing the market to organically expand rewards, thus achieving stable growth performance over time, rather than relying on risky “gambling”. Conclusion A stable trading system does not lie in accurately predicting price direction, but in risk management, emotional control, and adherence to probability. When profits are locked in, positions are built wisely, and stop-losses are considered necessary costs, the exchange will truly become a “cash machine” generating stable profits, rather than a place that burns through the capital of the majority.