Cryptocurrency markets spend most of their time sideways or slowly progressing, making one-way heavy positions particularly prone to pitfalls. In fact, combining trend following and grid trading strategies—complementary approaches—allows you to find opportunities in different market conditions.

**The logic behind trend following can be summarized in six words: Let profits run, cut losses timely.**

Judging the trend is simple—look at the daily MA20 and MA60. If the price is above them, it's bullish; if below, it's bearish. Additionally, when the Bollinger Bands contract within 3%, it usually indicates a potential trend reversal, and a breakout often signals a follow-up move.

How to operate specifically? During bullish periods, if the price retraces to the 4-hour MA60 support but doesn't break below, it's an opportunity to build long positions gradually. Conversely, during bearish periods, if the price rebounds near the 4-hour MA60 resistance, you can gradually open short positions.

Stop-loss is the most critical part. Place long position stops below the previous low, and short position stops above the previous high. This helps avoid being stopped out by market spikes. For example, if the support level is at $19,100, and a spike could push down to $18,000, set the stop-loss at $17,950—leaving some buffer space.

**Grid trading is another approach that doesn't require predicting the direction.**

It automatically buys low and sells high within a preset range. How to set parameters? Take BTC as an example: look at the past 90 days' volatility. If the price fluctuates roughly 20% up and down, that defines your grid range. If your capital is less than 10,000 USDT, 20 grids are sufficient; over 10,000, you can set 50-100 grids for higher precision.

What if you use BTC futures for grid trading? The advantage is that during a decline, you can buy more BTC; during an increase, you sell some, increasing your coin holdings over time. Of course, you need to guard against the risk of a strong trend breaking out of the grid range, which requires setting appropriate upper and lower limits based on your capital.

Both strategies have their focus: trend following captures the direction, while grid trading benefits from volatility. Use grid trading in sideways markets and trend following when a clear trend emerges. This combination allows you to steadily accumulate profits even if the market isn't very favorable.