Divided into equal portion distribution and unequal portion distribution

First: Equal distribution, also known as the rectangular trading method, refers to dividing funds into several equal parts, buying or selling in turn, with the same proportion of funds for each buy or sell. Usually, 3 or 4 equal parts are used. For example, buy 30% first, if profits are made then buy another 30%, if there are no profits, temporarily do not invest new funds. When the price of the cryptocurrency reaches a certain high point or when the market changes, gradually reduce positions and sell in batches.

Second: Unequal distribution, refers to dividing the funds into different proportions for buying or selling, such as ratios of 1:3:5, 1:2:3:4, 3:2:3, etc. Based on the proportions, the patterns can be categorized as: diamond shape, rectangular shape, hourglass shape, etc., with the commonly used method being the pyramid trading method.

Third: Equal funds, equal positions, using different methods for comparison.

Pyramid: Buy 5 layers at 1000, 3 layers at 1100, 1 layer at 1200, average price 1055

Inverted pyramid: Buy 1 layer at 1000, 3 layers at 1100, 5 layers at 1200, average price 1144

Equal rectangular: Buy 3 layers at 1000, 3 layers at 1100, 3 layers at 1200, average price 1100

When the price rises to 1200, profits are: Pyramid 145, Inverted pyramid 56, Rectangle 100

When the price falls to 1000, losses are: Pyramid +55, Inverted pyramid -144, Rectangle -100

From the comparison, it can be seen that the pyramid method has the least cost and greater profits when prices rise. When prices fall, it bears greater risk. The inverted pyramid is just the opposite; if the price falls to 1000, the inverted pyramid loses 144. In practical use, it is more reasonable to use the regular pyramid method for buying and the inverted pyramid method for selling.

After a significant drop in cryptocurrency price, when at the bottom and uncertain whether it has reached the bottom, if we buy at this time, we fear being trapped by continued declines; if we do not buy, we worry about missing out on a market reversal and rise, we can use the pyramid building method.