Reducing positions for defense is a primary defensive strategy focused on low long positions, creating a bullish structural trend. It's not necessary to always set stop-loss orders; sometimes a small dip quickly recovers, making the stop-loss ineffective.

In an upward trend, the normal approach for short-term position reduction defense is to set it based on the intraday high - [(intraday high - intraday starting point) * 0.618]. Generally, retracements of 0.50-0.618 are normal entry points for long positions. In rare cases, prices may drop to the next support level, so a 25-50% position reduction for defense is sufficient, with the reduced portion being replenished at the nearest support point below. The reason for only needing to reduce positions for defense is that prices will still rise in the short term, rather than experiencing a significant correction or waiting several days to rise again. In this case, reducing positions for defense minimizes losses in the short term. For users with small capital positions, there aren’t many options; as long as they are close to forced liquidation, stop-loss orders must be set—there is no choice in this matter. For small capital contracts, it’s best to maintain a strategic outlook; as quick entry and exit will continuously raise the average cost and keep you close to the market price. Frequent trading cannot withstand normal volatility and can lead to substantial losses. If, at the end, you do not have an immediate stop-loss, you risk losing your positions. Therefore, for small capital positions during strong markets, like going long on ETH in recent days, it’s advisable to aim for several hundred points, taking profits in batches while appropriately averaging down, keeping the average cost at least 120 points below the market price. This way, short-term risks are significantly reduced, rather than relying on the hope that your perceived liquidation price won’t be breached, which is merely a self-deception.