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I want to share a relatively easy-to-implement position management framework, especially suitable for traders who want to follow the trend but are prone to impulsiveness. Although this method may not catch the absolute bottom, it uses strict rules to help you filter out a lot of false signals.
The core idea is straightforward: only scale into positions during clear uptrends, using moving averages as your trading benchmarks.
**Step 1: Asset Selection**
Only focus on coins that are in a clear uptrend or healthy sideways consolidation. If the price has already fallen below all key moving averages and they are still diverging downward, just pass—don't make things complicated for yourself.
**Step 2: Gradual Entry, Only Breakouts**
Divide your investment into three parts. When the price volume-breaks above the 5-day moving average, invest the first part (e.g., 30%). If it continues upward and breaks the 15-day moving average, invest the second part. Finally, when it breaks the 30-day moving average, invest the remaining funds. This process gradually verifies the strength of the trend, greatly reducing the risk of being stopped out by false breakouts with a heavy position.
**Step 3: Support or Sell on Pullback**
After buying, if the price pulls back but does not break below your chosen moving average, hold on. Once it breaks below, exit that position. For example, if it breaks below the 15-day moving average, close the second part of your position; as long as the 5-day moving average holds, keep the first part.
**Step 4: Exit Logic in Reverse**
When the price starts to stagnate or break down from a high level, exit in reverse order: sell some when it breaks below the 5-day moving average, sell more when it breaks below the 15-day, and if the 30-day is also lost, exit all positions.
The essence of this framework is to let the market prove its strength on its own, using scaled positions to lock in risk. Simple, straightforward, and effective.