DreamOfTruth

Strategy 2: Middle Band Support and Resistance
Entry Conditions:
• Price retraces to the middle band for support/resistance
• Confirmed with candlestick reversal patterns (such as hammer, engulfing pattern)
Operations:
• Go long at middle band support, set stop loss below the middle band
• Go short at middle band resistance, set stop loss above the middle band
• Take profit based on Bollinger Band track
IV. Key Points for Risk Control
1. Position Management: No more than 5% of total funds per trade
2. Stop Loss Setting: Must set a stop loss to avoid holding onto losing positions
3. Trend Judgm

Bollinger Bands Contract Trading Strategy
I. Core Principles of Bollinger Bands
Bollinger Bands consist of three lines:
• Middle Band: 20-day Moving Average (MA20)
• Upper Band: Middle Band + 2 standard deviations
• Lower Band: Middle Band - 2 standard deviations
Standard deviation reflects price volatility. When market volatility increases, the Bollinger Bands expand; when volatility decreases, they contract.
II. Key Points for Using Bollinger Bands
1. Price Position Judgment
• Near the upper band: price is relatively high, possibly overbought
• Near the lower band: price is relatively low, p

1. Position Size = Your "Pricing" Judgment
Position size essentially reflects how much risk you are willing to bear for a single judgment.
• Heavy Position → Means you are extremely confident, but the market is fundamentally a probability game. Even if you are correct in a single trade, long-term success can be shattered by one mistake.
• Light/Distributed Position → Acknowledges uncertainty, uses position management to leave room for error, and lasts longer.
• Heavy Traders → Either expand rapidly or go to zero quickly; the latter is more common, and their mindset tends to become extreme.
• R

• First, develop your judgment skills (technical, fundamentals, emotional cognition)
• Then use position management to express your confidence level in your judgment (for example: high confidence → normal position, low confidence → very small position or hold)
• Forget about leverage multiples; focus on “if the market moves against me by X%, how much principal will I lose”
• The only way to survive: never let any single trade threaten your account’s survival
Trading is a marathon, and your position size is your pacing strategy, while leverage is your running shoes.
If your pacing is off (too l

Since ancient times, those caught in contracts have used low leverage. Do you know why? There's a saying called "boiling frogs in warm water," because with low leverage, you don't feel much, and you'll get deeper and deeper into the trap. Then, as your position grows and you add more funds to average down, you become more and more trapped. The more you add, the deeper you get, and the more trapped you become. So, whether the leverage is high or low isn't the key; what's important is whether you set a stop loss. If you don't set a stop loss, who will blow up if not you? Do you agree?
Although l