1. Understanding the essence of increasing position
Three Major Positioning Misunderstandings
Not a lifesaving tool (averaging down)
Not a gambling method (emotional averaging up)
Is a trend amplifier (expanding gains during profits)
Core Principles
Only increase positions on floating profit
Total position for a single variety ≤ 30%
Each increase in position is considered an independent new position
2. Golden Timing for Increasing Position
Three phases of trend market:
1. Startup Phase (first position 5%) ← Breakthrough key level
2. Acceleration Phase (increase position by 3%) ← Pull back to trend line
3. Sprint Phase (increase position by 2%) ← Breakthrough previous high
3. Two Scientific Methods for Increasing Position
Pyramid Position Increasing Method (Recommended)
Decreasing position increase (5% → 3% → 2%)
Cost Advantage: Average cost of position below current price
Example: BTC from 30,000 → 50,000
30,000: Open position 5%
35,000: Increase position by 3%
42,000: Increase position by 2%
Average cost of position ≈ 35,600
Proportional Position Increasing Method (Advanced)
Fixed Proportional Increase (3% each time)
Requires larger market space
Suitable for high volatility varieties
4. Fatal Position Increasing Traps
1. Averaging down (diluting cost)
Error Cases:
Long ETH at 2000 → drop to 1800 (averaging down)
→ 1700 (add more) → 1600 (liquidation)
Correct Approach: Stop loss immediately at 3% loss
2. Increasing positions in a volatile market
Typical Characteristics:
Frequent MACD golden crosses and dead crosses
Price hovers around the middle band of Bollinger Bands
Solution: Wait for breakthrough of ATR channel
5. Practical Risk Control System
Dynamic Stop Loss Rules
First Position: Fixed 3% stop loss
After increasing position: Overall stop loss moves up to cost price
After 5% profit: Use trailing stop loss
Position Calculation Formula
Maximum increase in position = (Current Floating Profit - Potential Drawdown) / 2
Example: 100,000 account with 20,000 floating profit, expected drawdown of 10,000 → can increase position by 5,000
6. Institutional Level Position Increasing Strategies
Volatility Adaptation Model
Low Volatility (ATR<2%): No additional position
Medium Volatility (2-5%): Can increase once
High Volatility (>5%): Can increase twice
Time Filtering Mechanism
Intraday Trading: No additional position
Swing Trading: Interval ≥ 3 days
Trend Trading: Interval ≥ 1 week
2023 ETH Practical Case: Starting from 1200 USD, executing pyramid position increase at three key points: breakthrough at 1500 (first position), pull back to 1400 (increase position), breakthrough at 1800 (increase position), ultimately capturing 80% of the rise with a maximum position of 12%, while keeping maximum risk under 3%.
Ultimate Suggestion:
Use the "Three-Step Verification Method" to decide on increasing position:
Has the trend been validated through 3 time cycles (weekly/daily/4H in the same direction)?
Is volatility continuously expanding (ATR rising)?
Is the account risk rate at <5%?
Remember: Excellent position increasing allows profits to run, not to rescue losses. Before each position increase, ask yourself: If this is a new trade, would I still enter?
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