Investment strategy recommendations for small capital When facing an initial capital of 1000U-2000U, it is necessary to establish an operating system that matches risk tolerance. The following are practical strategies quantified by risk:

(1) Aggressive strategy: Precise targeting of high elasticity assets

Core logic: Selecting high odds assets through 'technical resonance + fundamental turning points', suitable for investors with strong research capabilities and risk tolerance.

Asset selection criteria:

Technical: Weekly RSI > 55 and breaking through the 60-day moving average, trading volume amplified by 150% compared to the average of the previous 30 days, MACD about to form a golden cross.

Fundamental: The project is in a narrative window period (e.g., the Cancun upgrade related sector), the team has recently disclosed major collaborations, circulating market value < 1 billion USD and institutional holding ratio > 15%.

Key operation points:

When breaking through key resistance levels (e.g., previous high 0.618 fibonacci retracement level), build positions in one go, with position ratio 100%, simultaneously set a hard stop loss of 15% (below the bottom of the starting bullish candlestick).

Target return set at 50%-100%, after reaching, reduce 50% of the position to lock in profits, and move up the stop loss for the remaining position to the cost line.

Risk warning: Historical data shows that this strategy has a win rate of about 45% in bull markets, but the probability of a single coin being halved in bear markets is 72%, and strict stop-loss discipline must be enforced.

(2) Conservative strategy: Diversified allocation and dynamic rebalancing

Scientific position management model: Adopting a 2:3 allocation system of 'core asset defense + satellite asset offense'.

Capital splitting principle:

Split the principal into 2-3 parts (e.g., 2000U split into 400U×5 or 500U×4), with any single asset position not exceeding 30% of total capital.

Core position (60%): Allocate to mainstream coins in the top 10 by market value (requiring 24H trading volume > 200 million USD, volatility < 8%/day).

Satellite position (40%): Layout leading assets in niche fields such as cross-chain protocols (e.g., Layer0), AI tracks (e.g., Fetch.ai) (market cap ranks 20-50, team technology white paper update frequency ≥ quarterly).

Risk control mechanism:

When a single asset's price increase exceeds 40%, reduce 20% of the position; if the decrease exceeds 25%, increase by 10%.

Conduct correlation checks monthly, excluding assets with a correlation coefficient > 0.8 with the portfolio, maintaining a rolling 30-day correlation coefficient between held assets ≤ 0.65.