After 6 years of cryptocurrency trading, I've seen too many people messing around in the market, and a few steadily accumulating. Today, I want to share a proven position management system — one that doesn't rely on luck or all-in bets, but keeps the odds in your favor.

**Capital Allocation Is the First Line of Defense**

Divide your principal evenly into 5 parts, and only use 1/5 of it for each position. The cleverness of this design is that even if you get 6 consecutive wrong trades, your account principal remains intact. Set a stop loss at 7 points, with a minimum take profit of 13 points, so the odds are naturally in your favor. Many people think this approach is too conservative, but when the market suddenly reverses, you'll understand why this rule helps you survive longer.

**Follow the Trend, Don't Guess the Bottom**

Rebounds during a downtrend are often traps, while pullbacks during an uptrend are good entry points. Stay away from coins that surge short-term without clear logic. Those greedy for the last bit of profit are usually the ones caught deepest.

**Technical Confirmation Signals**

A MACD golden cross above zero is a signal to enter, and a death cross downward calls for quick position reduction. This isn't about MACD being magical, but in extensive trading, it helps filter out much noise. Price-volume confirmation is even more critical — a volume breakout at low levels warrants attention, while high-volume stagnation at the top should prompt immediate exit.

**Add Positions Only When Profiting**

This rule is the easiest to break and the most likely to lead to bankruptcy. Adding to losing positions is essentially gambling, and ultimately, you lose to yourself. Conversely, modestly increasing positions on profitable trades makes risk more controllable.

**Follow the Trend, Don't Chase Perfection**

Only trade coins in an uptrend, using moving averages as directional guides. Short-term, watch out for noise on the 3-day MA; long-term, focus on the 120-day trend. Spend 30 minutes each night reviewing your trades, checking if your logic still holds, identifying trend reversal points, and adjusting accordingly.

**Final Words**

The crypto market never lacks opportunities; what’s missing is a system that truly works. Systematic thinking isn’t some advanced theory — it’s about quantifying, reproducing, and verifying every decision. Only with such an approach can you hope to navigate through bull and bear cycles.