Self "Three-Three System" position allocation, namely: three layers of long positions, three layers of short positions, three layers of empty positions for flexibility, 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, one's perspective is determined by their position. Those fully invested wish for daily gains, while those in cash hope for quick declines. Personally, I feel that three layers of long positions combined with three layers of short positions is just right.
In specific operations, long positions are based on weekly and daily candlestick charts, generally operated every few days or weeks, usually buying or selling after a bottoming or topping structure appears on the daily chart.
2. Three layers of short positions: Short positions are usually based on intraday operations, which can be mainstream or alternative, relatively flexible, as they require monitoring and predicting the high and low points in a narrow range, thus having certain technical requirements.
However, the advantages of short positions are also very obvious; they allow traders to maintain sensitivity to market changes and can generate some income to reduce the holding cost of long positions.
3. Three layers of empty positions: As the name suggests, it means reserving three layers of positions as backup funds, just like a spare tire for a car, generally not in use, but can be very helpful in emergencies. At the same time, they should not be used frequently; once used, they need to be returned to their original place, otherwise, the purpose of keeping empty positions is lost.
4. One layer of contracts: Here, discussing contracts does not mean I recommend everyone to engage in contracts; contracts are just a tool, and when used in the right place, they have their unique charm.