1、 Pyramid shaped Position Management Method Pyramid shaped position management method, which means that the initial amount of funds entering the market is relatively large. If the market trend runs in the opposite direction in the future, no more positions will be added. If the direction is consistent, gradually add positions, and the proportion of added positions will become smaller and smaller. The position control is in a pyramid shape with a larger bottom and a smaller top, so it is called a pyramid shaped position management method. Its advantage lies in controlling positions based on the rate of return, where the higher the winning rate, the more positions will be used. The downside is that it is difficult to generate returns in a volatile market. 2、 Funnel type Position Management Method Funnel shaped position management means that the initial amount of funds entering the market is relatively small and the position is light. If the market is running in the opposite direction, the position will gradually increase in the future, thereby diluting costs and increasing the proportion of positions added. This method of position control takes the form of a small position below and a large position above. So, it can be called a funnel-shaped position management method. The advantage of this method is that the initial risk is relatively small, and the higher the funnel, the more considerable the profit without liquidation. The drawback of this method is that it needs to be based on the premise of consistent future trends and judgments. If the direction judgment is incorrect or the direction trend cannot cross the total cost level, it will be in a situation where it cannot profit and be eliminated. In general, at this time, the position will be relatively heavy, the available funds will be limited, and there will be difficulties in transferring funds on a weekly basis. Under this position management method, the more reverse fluctuations occur, the larger the position size and the higher the risk borne. When the reverse fluctuation reaches a certain level, it will inevitably lead to holding the entire position. At this time, as long as the direction fluctuates in the opposite direction by a small margin, it will lead to a position explosion. 3、 Rectangular Storage Management Method This method involves a fixed proportion of funds entering the market for the first time when establishing a position. If the market develops in the opposite direction, gradually increasing positions and reducing costs will follow this fixed proportion, which can be called the rectangular position management method. The advantage of the rectangular position management method is that each time only a certain proportion of positions are increased, the holding cost gradually increases, and the risk is evenly distributed, thereby achieving average management. Holding positions can be well controlled, and when the future direction and judgment are consistent, substantial returns can be obtained. The disadvantage is that in the initial stage, the average cost rises rapidly, making it easy for traders to fall into a passive situation where prices cannot cross the break even point and are trapped. The more reverse the movement, the larger the position, and when it reaches a certain level, it is inevitable to hold the entire position. However, if the price changes slightly in the opposite direction, it will lead to a liquidation.