Chande's Small Capital Three-Model Trading System
Model Overview
- Model One, Two: Follow the Small Trend (30 minutes), light position short trades, pursuing certainty;
- Model Three: Follow the Large Trend (4 hours), heavy position main attack. #Metaplanet增持比特币
Model One: Follow the Large Trend, Small Structure Entry (20% capital)
- 4-hour defines the trend, only do trend-following operations in 30 minutes;
- Do not make the first buy against the trend, prioritize the second buy and third buy;
- Small-level high win-rate points, take small segments, quick in and out;
Model Two: Leaving the Central Pivot and Pullback Confirmation (20% capital)
- Only do the first confirmation after a breakout, do not get entangled within the central pivot;
- The 30-minute central pivot consists of 3-5 strokes;
- Clearly leave, wait for the pullback structure to get on board;
- Stop loss set at the lower edge of the pivot or the low point of the pullback stroke;
- Combine volume price and SAR for judgment;
- If there is no pullback, observe whether the second stroke is a new high strong before deciding whether to chase.
Model Three: 4-hour Third Buy Heavy Position Entry (80% capital)
- 4-hour level divergence or third buy defines the main trend;
- 30 minutes find precise entry (second buy, third buy); #比特币与美国关税政策
- Confirm support during pullback and enter, hold for mid to long term.
Operational Logic
- Model One: Trend judgment using EMA/SAR or double 30-minute central pivots; wait for false breakouts or true breakouts within the central pivot;
- Model Two: Only focus on central pivot breakouts/breakdowns, high win rate with trend resonance;
- Model Three: Use 4 hours to identify trends, use 30 minutes to enter.
Pullback End Judgment
- Key price level breakout confirmation: pullback high (long)/low (short);
- Auxiliary signals: small double bottom/central pivot, small level SAR reversal, increased volume, pin bar, engulfing, MACD divergence, breakout resistance;
- When operating in 30 minutes, can look at 5-minute structure details.
Position and Capital Management
- Model Three 80%, Model One/Two each 10%-25%;
- Divide into 5 positions, each position loses 5-10% of capital;
- After profit, still divide into 5 positions to roll;
- Profit and loss ratio at least 3:1, small capital relies on position division and compound interest to grow.
Exit Strategy
- Model One/Two: Exit if the structure 9 cycles are not completed; stop loss set at the top of the central pivot or pullback bottom offset by 100-200 points to prevent spike;
- Set break-even at 1000 points profit, start reducing position at 2000 points;
- Model Three: Falling back to the previous central pivot is considered a failure, end the trend and take profit.
Response to breakouts without pullbacks.
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