Advantages: follow the trend, the clearer the trend, the higher the winning rate, and the higher the position used, the higher the profit, which will ensure the safety of funds.
Disadvantages: In the volatile market, it is difficult to make profits, and the initial opening ratio is significant, so the requirements for the first admission are relatively high.
The second type: the initial position is small. If the market runs in the opposite direction, the positions will be gradually increased to level the cost, and the proportion of positions will continue to increase. This method is the funnel-shaped position management method often used in it.
Advantages: the initial risk is relatively small, and the higher the funnel, the more considerable the profit.
Disadvantages: this method is generally based on the premise of judging the future trend of the general trend and buying when the general trend is adjusted back. This kind of position management, once there is a reversal trend, the position will be bigger and the risk will be higher. If the trend of the market outlook is as predicted before, there will be no small gain. If the market outlook forms a unilateral opposite trend, it will lead to short positions.
The third type: the amount of funds entering the market at the beginning of the period accounts for a fixed proportion of the total amount of funds. If the market develops in the opposite direction, it will gradually increase the position, share the cost, and the position will also follow this fixed ratio. This method is a common rectangular position management method for spot crude oil.
Advantages: Fixed positions every time, gradually raise the cost of positions, and share and manage risks equally. When the position is controllable and the direction and judgment of the market outlook are consistent, you will get rich benefits.
Disadvantages: In the early days, the cost rose faster. The more the trend reverses, the bigger the position. If one side is formed, there will be opportunities for short positions.