If the trading system/strategy is used for attack, position management is used for defense.
Whether you can make money depends on the former, and how to keep the fruits of victory and survive depends on the latter.
I watched a futures trader's position management sharing, which is quite interesting. There are two core ideas:
Small amount diversification
Do a large number of unrelated varieties, each of which is controlled at a certain position, similar to the casino strategy;
Win-rush-lose-shrink
Everyone knows that cutting losses and letting profits run;
Win-rush-lose-shrink is similar, expanding risk exposure when the wind is favorable, and actively shrinking risk exposure when there is an adverse wind.
If this strategy is used in the currency circle, the first challenge is that if your funds are all in the currency circle, choosing 100 cottages is also highly correlated;
The two categories that I can think of with lower correlation are CEX and chain, but this requires too high a trader's ability. This requires two completely different trading systems, unlike futures trading, regardless of the variety, the strategy can be the same.
I used a similar method in the last cycle, staking ETH to obtain USDT, and playing on the chain.
The main focus is on the chain, which is less risky than revolving loans because the two sides can be unrelated and the cycles are staggered.
The second strategy can be used directly, which is more against human nature. Usually, ordinary people may even be furious when they lose money, trade angrily, and expand risk exposure to try to recover; this requires caution. When losing, you should be more conservative, withdraw slowly, or even close all exposures, calm down for a while, and then trade again.
Brothers, what is your position management strategy?
