The allocation of positions in "Three-Three System" is as follows:
1. Three layers of long positions: Long positions are the cornerstone of our overall positions. If the proportion is too small, it is meaningless; if it is too high, it will affect the overall strategic judgment. After all, one's position influences their mindset: those fully invested wish for daily increases, while those out of the market hope for a drop. Personally, I believe that three layers of long positions paired with three layers of short positions is just right. In specific operations, the long position is based on the weekly and daily candlestick charts, generally operated every few days or weeks, usually buying or selling after the daily chart shows a bottoming or topping structure.
2. Three layers of short positions: Short positions are usually focused on intraday operations, which can be mainstream or alternative, and are relatively flexible. This requires monitoring the market and predicting the highs and lows within a narrow range, thus having certain technical foundations. However, the advantages of short positions are also very obvious, as they allow traders to maintain sensitivity to market changes and can generate some income to reduce the holding costs of long positions.
3. Three layers of cash: As the name suggests, it means setting aside three layers of positions as reserve funds, like a spare tire in a car. It is usually not used, but can be very helpful in emergencies. It should not be used often, and once used, it should be returned to its original place, otherwise the significance of maintaining cash is lost.
4. One layer of contracts: Here, we talk about contracts, but I am not recommending everyone to trade contracts. Contracts are just a tool, and when used in the right place, they have their unique charm.