Decoding the Secrets of Contract Success: "Zhengrong's Contract Manual" – Bitget Community AMA Highlights
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Decoding the Secrets of Contract Success: "Zhengrong's Contract Manual" – Bitget Community AMA Highlights
Stay true to the original aspiration, and you will fulfill the mission.
Navigating Web3 tides with focused insightsYesterday, Bitget hosted an online community AMA session themed "Unlocking the Secrets of Contract Trading Success – Zhengrong’s Contract Mastery." We were honored to have Zhengrong Shuobi as our guest speaker. Below is a recap of the key highlights from the AMA:
1. How did Zhengrong get into crypto and contract trading, and what is your current community size and trading style?
Zhengrong Shuobi: I initially started with stocks, but later was introduced by a friend to a crypto institution almost by accident. After discovering how fascinating the crypto space is, I began actively trading spot and futures. The current Chaos Community mainly focuses on project research and trading strategies. At its peak, our private community had over 3,000 members.
My personal trading style primarily revolves around short-term swing trades within three days. My directional bias comes from daily charts, while my decision-making cycle is based on the 4-hour timeframe—I am a right-side trader.
2. Every successful trader reviews their trades. What trade left the deepest impression on you—whether in terms of profit or lessons learned? Can you share it with us?
Zhengrong Shuobi: The most memorable trade for me wasn't the one with the highest profit or the largest loss. It was the first time I used a particular method successfully, which challenged and changed some of my outdated beliefs.
The trade that stands out the most was my first rolling position (also known as pyramiding with floating profits). Using this approach for the first time delivered nearly a tenfold gain. As I became more familiar with this technique, I accumulated valuable experience.
Rolling positions only work well during strong one-sided trending markets. It requires solid fundamentals, exceptional psychological resilience to endure significant profit drawdowns, and a bit of luck to achieve substantial gains. I don’t recommend this method for beginners—it has a high barrier to entry, but it's also one of the few ways to grow small capital significantly.
Key points include:
1. Low win rate, high risk-reward ratio; remain active with a base position during consolidation, never go fully flat;
2. Once price breaks out of the consolidation zone, aggressively add to your position using floating profits;
3. Deploy all positions at the breakout point; no further entries afterward—focus instead on trailing cost protection or moving stop-losses to manage risk;
4. Hold onto profits—don’t exit unless stopped out by your cost protection level;
Additionally, trend reversals take time. In a downtrend, I only close short positions when the higher timeframes form a consolidation zone at the bottom and break to the upside on the right side.
The entire process is extremely demanding—definitely not recommended for traders with less than three years of experience.
1. Requires very clear trends with long duration—highly dependent on favorable market conditions;
2. Each added position must be treated as an independent trade, placed only at key technical levels. Entry precision is crucial, otherwise your average cost will suffer;
3. Only suitable for strong one-way markets and still somewhat reliant on luck;
3. Contract Scenario 1: Your current contract position has a floating profit of 1,000 USDT. By what criteria do you decide whether to close or hold?
Zhengrong Shuobi: Eight words: Never forget your original intent (your initial entry logic), and you’ll achieve your goal.
The decision to close or hold has little to do with the current floating profit. It should align with your original trading decision. Trading is a game of probabilities—don’t predict, analyze.
You must have a defined trading system. Whether you're trading trends, swings, or intraday, your focus should be precise. Trying to catch everything means catching nothing.
Secondly, risk management is paramount. Finally, define your entry, stop-loss, and take-profit levels clearly.
Before placing any trade:
1. Clarify your entry logic, entry point, and predefined stop-loss/take-profit—plan and simulate beforehand;
2. Simulate both scenarios: what to do if the market moves in your favor, and what to do if it goes against you;
3. When your position shows +1,000 USDT or -1,000 USDT, ask yourself only one question: Has my original reason for entering (my initial logic) changed?
If your original thesis has changed, exit immediately. If it remains valid, stick firmly to your plan.
4. Contract Scenario 2: Your contract position is down 1,000 USDT. By what criteria do you decide whether to stop out or add margin?
Zhengrong Shuobi: I never add margin when losing because I never hold losing positions. In my early trading years, holding losses led to blowups—it was painful. So now I never average down on losses. I haven’t blown up in a long time, though I frequently hit stop-losses—no one can avoid them.
Your account can have big wins, small wins, or small losses—but absolutely no large losses. Floating drawdowns are completely normal in trading.
So when facing a 1,000 USDT floating loss, your stop-loss criteria should already have been set before entry. Stop-loss placement varies per trader and system. Mine are primarily based on confluence between key support/resistance levels and candlestick patterns. Find a trading system that fits your style and fix your stop-loss method.
5. Current market outlook: How do you assess future price direction? Share Zhengrong Shuobi’s exclusive contract trading insights.
Zhengrong Shuobi: Honestly, there’s no real “exclusive secret” in trading. Most systems are publicly available. Giving someone a fish feeds them for a day; teaching them to fish feeds them for life. Let me briefly share how I started learning trading.
I recommend new traders adopt a thematic learning approach to develop their trading system. Pick a theme—such as “how to build your own trading system”—any topic you’re curious about. Then study those who’ve achieved results in financial markets, regardless of geography or era.
Use the internet to gather their systems, identify strengths and weaknesses, and adapt the best elements into your own framework.
At its core, it’s about copying first—don’t overthink it.
For example, if you want to learn stock investing, study Buffett, Charlie Munger, Peter Lynch, etc. Focus on a narrow theme and see how others solved it. 99% of the world’s problems have already been solved—you just need to find the people who solved them and replicate their methods. Through deliberate practice and repetition, you’ll eventually develop your own insights and style. Then iterate and evolve—step two is to surpass them. Ultimately, you’ll earn real returns.
Learning from those who’ve succeeded accelerates progress dramatically.
Current Market View:
As my trading experience grows, I focus less on capturing minor fluctuations and small profits. Like drinking from a river—take only one sip. I only aim for major moves. Currently, the market is consolidating on the weekly chart. As a trend trader, I haven’t made many trades recently:
The weekly candlestick pattern shows a clear consolidation, now entering its ninth week, with a Pinbar formed inside this range.
The Bollinger Bands are forming a distinctive喇叭口 (megaphone) pattern, and the weekly bands are about to contract. After contraction, a major move will likely determine the next direction. My current status: base position established—waiting for direction!
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