Systematic Position Size Management Strategy (Applicable to Daily Trend Determination + Lower Timeframe Optimized Entry)

By combining stop orders and limit orders, this strategy improves win rate, optimizes entry price, and reduces emotional volatility.

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1. Daily Timeframe: Determining Direction and Primary Position

1.1 Determining Trend on the Daily Chart

• Mark key support, resistance, breakout, or reversal signals on the daily chart.

• Trend continuation signals: A large bull bar breaking through resistance, with higher highs being continuously formed.

• Reversal signals: Daily-level double bottom / double top patterns.

1.2 Enter 50% Position Size with a Stop Order

• Place a stop buy or stop sell at the key level, entering promptly when the trend continues.

• Use only 50% of the position to avoid missing a major move or bearing excessive floating losses from pullbacks.

• Place the stop loss at the daily pattern invalidation point; set take profit based on the daily-level target.

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2. Lower Timeframe (5-Minute / 15-Minute): Adding Positions with Limit Orders

2.1 Split the Remaining 50% Position into Two Limit Orders

• Each order is 25% of the position, entering during pullbacks on the lower timeframe trend.

• Purpose: Avoid being trapped after chasing price, while optimizing the average entry price.

2.2 Limit Order Strategy

• Place orders at the starting point of the main swing (Leg) on the 5-minute chart.

• If the pullback exceeds 50% and the trend weakens, reduce the position at breakeven or slight profit.

• Advantages: Overcomes human weaknesses, avoids emotional volatility caused by short-term pullbacks; optimizes entry price and improves execution.

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3. Take Profit and Stop Loss: Unified Based on the Daily Timeframe

3.1 Unified Stop Loss

• Prevents lower-timeframe stop losses from being too tight and triggering premature exits while the higher-timeframe trend is still valid.

3.2 Unified Take Profit

• Based on daily-level targets (e.g., 1:1), avoiding premature profit-taking that misses larger moves.

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5. Strategy Advantages and Considerations

1. Offensive and Defensive Flexibility
   50% of the position rides the trend to avoid missing major moves; pullbacks are used to add positions with limit orders, optimizing cost.

2. Clear Take Profit and Stop Loss, Unified Risk Management
   Managed at the same daily level, reducing interference from short-term fluctuations.

3. Improved Trading Efficiency
   Avoids the high risk of entering full position at once, allowing pullbacks to provide better entry prices.

4. Reduced Emotional Volatility, Improved Execution
   By placing limit orders at key Legs on the lower timeframe, avoids panic from chasing large bull bars followed by pullbacks.

This strategy helps traders capture the main trend while using pullbacks to optimize entry and manage emotions, making trading more stable and efficient.