In the crypto world, achieving a turnaround with small capital is not about placing large bets, but about precise allocation and rhythm control. Today, we will break down a complete fund management system.

**1. Three-layer Positioning Structure**

Taking $1000 as an example, how should this money be divided?

The first part, $300, is dedicated to identifying entry signals. Discipline here is crucial—never risk more than 30% of the principal on a single position, and only act when MACD crosses bullish and volume expands simultaneously. No signal means no reason to add to the position; don’t buy the dip when prices fall, and don’t stubbornly hold when losing. Small funds fear nothing more than wasting bullets in choppy markets.

The second part, $500, is reserved for trend opportunities. This money waits for the "big trend confirmation"—for example, signals like BTC breaking above the weekly high. Usually dormant during sideways movements, this portion does not participate in minor fluctuations, preserving ammunition and avoiding emotional toll from ineffective trades.

The third part, $200, acts as insurance. Even if the first two parts lose everything, this $200 is enough to fully revive the account and give a second chance.

**2. Three-stage Trading Rhythm**

When the real trend arrives, how can you both make money and control risk? Divide the trend into three phases:

In the early stage of the trend, trade lightly to test the waters, aiming to lock in a 10% profit and then exit immediately. The goal here isn’t big gains but to verify the direction.

During pullbacks that do not break the previous low, it’s a good time to add positions. Use floating profits to increase the position, not the principal, for better risk control. The size of the add-on also matters—use 30% of the profit from the previous trade to expand, and lock in the rest.

Only after the trend is fully confirmed do you dare to increase your position significantly, but the maximum position size should still be 30% of the principal. Many fail at this step, always wanting to push the biggest chips when the trend is most obvious, but often get shaken out.

Remember: sideways markets are like a meat grinder. Instead of being repeatedly cut inside, it’s better to stay flat and wait for a confident opportunity.

**3. Profit Roll-Over and Compound Logic**

The first profit of $100 should not be treated as part of the principal but as new operating capital. Use profits to generate more profits—that’s the secret to rapid accumulation with small funds.

When floating profits reach 10%, use 50% of this profit to add to the position, and the remaining 50% is taken as realized gains. Continue until floating profits reach 30%, then withdraw 20% of the profit as a "safety cushion," while the rest remains in the market.

The core principle is eight words: profit generates profit, principal remains principal. Be cautious of impulses to operate with the principal—this is often the beginning of losses.