Assuming we initially have a principal of 100U.
In the first trade, we use 10% of the principal, which is 10U for the operation. If successful, the funds will rise to 130U.
In the second operation, we use 10% of the current funds, which is 13U as the position. Suppose this time luck is not on our side, and we hit the stop-loss, bringing the funds back down to 117U.
In the third attempt, we again use 13U as the position. If successful this time, the total funds will rise to 156U.
In the fourth investment, we increase the position, investing 16U, which is also about 10% of the current funds. As a result, we hit the take-profit again, and the account will finally have 204U.
When opening a position, always follow the strategy to manage the position:
For example, if the entry price is 2685 (using 10% of the funds), when the price rises to 2695, we can increase the position (still using 10% of the funds). At the same time, set the stop-loss at 2705. If you want to operate more aggressively, you can buy in batches, investing 7% of the position each time. The advantage of doing this is that the risk-reward ratio can be better, potentially reaching 1 to 1.5, and for the more skilled, even up to 1 to 2.6.
As we approach the take-profit target, when there are about 5 to 10 points left, we can first close 70% to 80% of the position. For the remaining portion, raise the stop-loss line by 5 to 10 points. If the price does not break this new stop-loss point, we can hold on. However, once it breaks and does not meet our expectations, we gradually reduce the position, closing 70% of the position at each key resistance level while also adjusting the stop-loss position.
If luck is on our side and we have 2 to 4 consecutive profitable operations, our total funds can significantly increase. This method considers both risk control and maximizing returns.