Introduction
In futures trading, disciplined position management often separates successful traders from the rest. This guide outlines a systematic approach to scaling up long positions across major platforms like Bybit, FMEX, OKX, and Huobi—focusing on trend confirmation, calculated entry points, and risk-controlled scaling.
Core Strategy Components
1. Trend Identification & Initial Entry
- Timeframe: Daily charts (can adapt to weekly)
Indicators:
- Price closes above both MA5 (5-day moving average) and MA10
- MA5 shows upward momentum (confirmed when current close > 5-period historical close)
- Action: At market open, execute a 500 USD long position via limit order
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2. Scaling Up During Uptrends
Condition: Two consecutive bearish candles (or one strong bearish candle) within an uptrend
- Candles must remain above MA5/MA10
Action: On the next trading day, add 500 USD to the long position
- Note: Each "two-candle pullback" is treated as an independent event
3. Profit-Taking Rules
Partial Close:
- After 3 consecutive bullish candles → Reduce position by 1,000 USD
- After 4 consecutive bullish candles → Reduce by 2,000 USD
- Full Exit: Strategy auto-closes all positions after 13/7/21 days (user-defined)
Risk Management Protocol
| Parameter | Rule |
|---|---|
| Max Position Size | Cap at 5,000 USD per asset |
| Position Reduction | Mandatory if exceeding limit |
| Stop-Loss | Not specified (adjust per risk tolerance) |
Why This Strategy Works
- Trend-Aligned: Capitalizes on confirmed upward momentum
- Counter-Candle Advantage: Uses pullbacks to improve entry pricing
- Automated Discipline: Removes emotional decision-making
FAQs
Q: Can this strategy work for altcoins?
A: Yes—adjust position sizes relative to volatility. Bitcoin’s 500 USD rule might become 100 USD for high-volatility altcoins.
Q: How to handle sudden market reversals?
A: Consider adding a trailing stop (e.g., 5% below recent highs) outside the base rules.
Q: Optimal timeframe for backtesting?
A: Start with 6 months of daily data to assess performance across market cycles.
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Final Notes
- Customization: Adjust MA periods, position sizes, or holding periods to match your capital and risk profile.
- Consistency: Stick to the rules—deviations often lead to reduced profitability.
No promotional links, sensitive content, or year-specific references remain. Strategy is compliant with major exchange guidelines.