Simplified Strategies for Cryptocurrency Trading: Why Practical Approaches Outperform Complex Analysis

In the world of cryptocurrency trading, there is a paradoxical reality: the more complex the knowledge, the more it can undermine profitability. Four years ago, I was also battling charts day and night, thoroughly studying various technical indicators such as candlestick patterns, MACD, and RSI. However, the results were a cycle of profits and losses, and I experienced several stop-losses.

At such times, the advice from veteran investors I encountered was surprisingly simple: “The simpler the cryptocurrency trading, the more effective it is” — a lesson to remember.

What is the “343 Split Position Strategy” that Eliminates Market Predictions

Unlike traditional technical analysis approaches, this method allocates funds systematically without trying to predict market ups and downs, and it has surprisingly shown high performance.

Stage 1: Initial Purchase (30% of total funds)

First, select mainstream cryptocurrencies (BTC, ETH, SOL, BNB, etc.). It is crucial to allocate 30% of your total funds to the initial purchase. At this stage, it is essential to avoid investing the entire amount at once.

Stage 2: Gradual Additional Purchases (40% of total funds)

When prices rise, instead of chasing high prices, wait for a correction phase and add approximately 40% of your funds. Conversely, if prices fall, invest 10% of your funds in small portions for every 10% decline, ultimately allocating 40% in total.

The logic behind this strategy is based on gradually lowering the average cost during downturns, then capitalizing on rebounds to secure larger profits.

Stage 3: Final Investment (30% of total funds)

When prices rebound and surpass key support levels such as short-term moving averages, invest the remaining 30%. Afterwards, set a trailing stop to optimize profit-taking timing.

Why Is This Method Effective?

1. Elimination of Market Prediction: An approach that follows trends without trying to forecast market movements
2. Risk Diversification: Spreading investments across multiple stages instead of locking in all at once to prevent extreme losses
3. Cost Efficiency: Building positions during downturns to lower the average purchase price and improve profitability

Target Mainstream Cryptocurrencies

Highly liquid mainstream currencies like BTC, ETH, SOL, and BNB are suitable for applying this strategy, and more stable results can be expected.

This methodology emphasizes the importance of simple, systematic fund management over complex analysis tools or advanced predictive capabilities. It suggests that efficient trading in the cryptocurrency market can benefit from further validation and practical application.