Is there any biblical doctrine on how to avoid paranoia as a Christian under an Protestant framework? It seems clear to most who have read the Bible that it portrays Christians as a minority among a wicked world empire that desires nothing less than the extinction of Christ in his church. Jesus said narrow is the road that leads to life and ‘few’ find it. (Math 7:13) Jesus warned his disciples about the world hating them (John 15:18).  Also, even within the church Christians are said to be persecuted by the legalists who are absorbed with the outward form of religion (Gal 4:28) while denying its internal power. (2 Tim 3:5)

Considering this extreme level of conflict that the poor believer finds himself facing (at least according to the biblical proposal) how can he/she avoid spinning 'conspiracy theories' and falling into ‘they are out to get me’ mentality? Is there any doctrine about sanctification within an Protestant framework that would enable a Christian to eliminate paranoia in a hostile world?

Five mainstream protestant theories of sanctification are conveniently found here (Wesleyan, Reformed, Pentecostal, Keswick, Augustinian-Dispensational).  Please state the view that the post, is more or less, ascribing to and show how this view of sanctification would be applied to enable a Christian to manage paranoia in terms of a specific crisis and long term control.
What can keep him calm? The ninth blessing:

Blessed are ye, when men shall revile you, and persecute you, and shall say all manner of evil against you falsely, for my sake.
Rejoice, and be exceeding glad: for great is your reward in heaven: for so persecuted they the prophets which were before you.

You should be happy when you are persecuted for Christ's sake, not afraid. If you have faith in Christ, then you know that persecution is blessing and that God is more powerful than your persecutor. You don't feel a need to revenge or fear. So you are not in a danger of paranoia.