Self "33 system" position allocation, namely: three layers of long positions, three layers of short positions, three layers of cash positions, and one layer of contracts!
Three layers of long positions: Long positions are the cornerstone of our overall position. If the proportion is too small, it is meaningless; if it is too high, it affects the overall strategic judgment, after all, the rear end determines the brain, those fully invested hope for a daily rise, while those with no position hope for a quick drop. Personally, I believe that three layers of long positions combined with three layers of short positions are just right.
In specific operations, long positions are based on weekly and daily K charts, generally operated once every dozen days or weeks, usually buying or selling after a bottoming structure or a topping structure appears on the daily K.
2. Three layers of short positions: Short positions are usually mainly based on intraday operations, which can be mainstream or alternative, relatively flexible, as it requires monitoring the market and predicting the highs and lows of narrow ranges, thus having certain technical requirements.
However, the advantages of short positions are also very obvious, allowing traders to maintain sensitivity to market changes and earn some income to reduce the holding cost of long positions.
3. Three layers of cash positions: As the name suggests, it means leaving three layers of positions as backup funds, just like a spare tire in a car, usually not used, but can be very helpful in an emergency. At the same time, it should not be used frequently; once used, it should be returned to its original place, otherwise, the purpose of keeping cash positions will be lost.
4. One layer of contracts: Here, speaking of contracts, it is not that I recommend everyone to engage in contracts; contracts are just a tool, and when used in the right place, they have their unique charm.