$BTC 3D moving average has crossed, the opportunity for altcoins is coming!
For blue-chip targets, even if you are investing (rather than short-term speculation), setting a perfect entry strategy is crucial (no one wants to buy and see a 10% loss the next day). So, is there a way to efficiently utilize funds while dealing with potential short-term declines during a bull market?
Assuming we use $100K in funds, with a 5X futures full position mode, buying up to 5 blue-chip targets (such as $TAO, $FARTCOIN), and aside from initial positions, adding positions up to 4 times later. Also, assuming during a bull market, the maximum drawdown for quality targets is 20%.
Then, how do we optimize the initial and additional positions?
Operational steps (for each cryptocurrency): (Not investment advice, just strategy exchange)
1️⃣ Initial position: Buy $7,000 nominal value of blue-chip coins (using $1.4k margin).
2️⃣ Downward position addition plan (approximately 1.3 times increment):
📉 Drop 5%: Add $9,100 nominal value
📉 Drop 10%: Add $11,830 nominal value
📉 Drop 15%: Add ~$15,400 nominal value
📉 Drop 20%: Add ~$20,000 nominal value
✨ Strategy advantage: Starting position is small, leaving about $93k large buffer in the account (based on $100k principal). Gradually increase positions during declines to lower costs. Calculations show that even if 5 coins simultaneously drop 20%, this setup can survive within the $100k principal.
💡 Key point: 🎯 Take profit above the average holding cost!
🛡️ Risk control: Consider setting a stop loss below -20%, or hedging the market with $BTC.
🧐 Core: Choose quality coins you truly believe in.
Calculating an average drop of 10%, $100K funds, a total of $140K targets bought, risk and return, fund input and output, are relatively optimized.
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