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.
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SchrodingerWallet
· 01-06 18:44
The moving average batching system, to put it simply, is using rules to treat impulsiveness. But the real difficulty is in execution—who doesn't know but can't do it?
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LiquidationOracle
· 01-06 05:53
The moving average rule sounds good, but how many people can truly stick to it?
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ShamedApeSeller
· 01-06 05:49
Sounds good, but I still trust my intuition more, haha
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SmartContractDiver
· 01-06 05:32
Moving averages sound smooth, but in actual trading, it's really easy to be fooled by fake breakouts...
I'm an impulsive trader, always chasing highs, so this framework does have some use.
Entering in three batches is a good trick, but you can still get trapped during fake breakouts.
Honestly, it still depends on the market; no matter how strict the rules are, sometimes they can't hold back.
Break and run, I agree with this—don't try to catch the rebound.
Passing on moving averages that are diverging downward, I remember this one—it saves trouble.
It sounds simple, but in actual operation, you still need to watch the charts; you can't just copy blindly.
Dividing your position into three parts for entry... definitely more attractive than going all in at once, but the transaction fees also increase.
If the price pulls back without breaking the level, hold on—this logic is clear, but sometimes judging whether a level is broken or not can be quite fuzzy.
You're right, let the market speak for itself, don't overthink it.
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RebaseVictim
· 01-06 05:26
Moving averages are static, human nature is dynamic, ultimately it's about being able to withstand the pullback.
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.