After many years in the crypto space, those who don't understand rebalancing operations tend to earn the slowest. The traders who can consistently profit have basically mastered the art of adjusting their positions. Today, let's break down an effective rebalancing methodology.

The core logic of rebalancing is quite clear, divided into these 5 steps:

**1. Timing**—Wait for the market to meet certain conditions before acting; avoid entering randomly.

**2. Opening Position**—Follow technical analysis signals closely and find the right moment to initiate your first position.

**3. Adding Positions**—When the market moves in your expected direction, gradually increase your holdings in batches.

**4. Taking Profits**—Sell portions at predetermined profit levels or cut losses immediately when risks are perceived.

**5. Closing Position**—Clear all at the target price or when the market trend clearly reverses to realize gains.

Once the theory is clear, let's talk about how to operate in practice.

Should you add to your position after making a profit? Yes, but only if your average cost has already decreased and risks are under control. The most effective point to add is at trend breakout—if there's a pullback after a breakout, it actually presents a better opportunity to increase your position.

An advanced approach is the combination of **core holdings + swing trading**—divide your funds into two parts: one for long-term holding as the core position, and the other for frequent buying and selling during price fluctuations, aiming to lower the overall cost and amplify returns.

There are three common ways to allocate this:

**Half-position rebalancing**: 50% of funds held long-term, 50% for swing trading.

**30/70 split**: 30% for stable core holdings, 70% for swing trading.

**70/30 split**: 70% held long-term, 30% for high-frequency swing trades.

Choosing which allocation depends on your risk tolerance and time commitment. A higher core holding proportion means lower risk but relatively stable returns; a higher swing trading proportion offers greater profit potential but requires monitoring and operational skills. Market conditions change rapidly, so whether you can seize opportunities depends on your execution ability.