In the cryptocurrency world, if you want to quickly earn 12 million with a capital of 10,000, the rollover strategy may be a path full of temptation and risk. However, even if you choose this high-risk approach, you must plan cleverly and leave enough 'turnaround' opportunities for yourself, suggesting at least three attempts.
Step-by-step risk funding planning
Assuming the total account funds are 200,000, with a maximum allowable loss for the client being 20%, or 40,000. A more reasonable risk loss allocation plan is: first investment of 10,000, second investment of 10,000, third investment of 20,000. With this arrangement, as long as one of the three trades is correct, there is a possibility of making a profit, or at least being able to continue surviving in the market. After all, in the ever-changing battlefield of cryptocurrency, not being eliminated by the market means retaining the hope of winning.
Go with the flow, grasp the trend
Grasping market trends is crucial; compared to sideways markets, trending markets are harder to navigate. Trend trading follows the principle of buying high and selling low, which requires traders to have strong position discipline; meanwhile, the high-throw-low-catch operating model often aligns more with public psychology, but trading rules are quite the opposite—operations that align more with human nature tend to be harder to profit from. Because trend trading is more challenging, it contains higher profit potential.
In an upward trend, every sharp pullback is a good opportunity to go long. Recall the principle of probability; if you miss the opportunity to enter or have already exited, be patient and wait. When the price drops by 10% - 20%, decisively and boldly go long.
Clarify profit and stop-loss targets
Setting profit and stop-loss targets is a key factor in determining trading profits and losses. In multiple trades, ensuring that total profits exceed total losses is the core goal of achieving profitability. This can be specifically achieved through the following three points:
Control the stop-loss amount: The stop-loss amount for each trade should not exceed 5% of the total funds, keeping losses within a manageable range.
Expand profit margins: Each trade's profit target should exceed 5% of the total funds to achieve steady profit growth.
Increase trading win rate: Ensure the total trading win rate exceeds 50%. As long as the profit-loss ratio is greater than 1 and the win rate is above 50%, profitability can be achieved. Of course, you can also choose a trading model with a high profit-loss ratio and low win rate or a low profit-loss ratio and high win rate, as long as the total profit is positive in the end. The calculation formula for total profit is: initial capital × (average profit × win rate - average loss × loss rate).
Avoid excessive frequent trading
BTC perpetual contracts support 24-hour uninterrupted trading, which can easily attract beginners to trade frequently. Many newcomers trade almost every day during the 22 trading days of a month. However, 'those who walk along the river will inevitably get their shoes wet'; frequent trading will inevitably increase the probability of errors. Once an operational error occurs, the mindset can easily be affected, potentially leading to 'revenge trading' behaviors, such as trading against the trend or heavily betting. This emotional trading approach often leads to a mistake that compounds into further mistakes, ultimately causing significant losses that may take years to recover.
Considerations for rolling over strategy
If the rollover operation can succeed a few times, the profits can be considerable, possibly reaching the million level. However, when implementing a rollover strategy, the following points must be noted:
Be patient: Rolling over positions can be highly profitable, but opportunities are rare. Do not operate blindly. Wait patiently for high-certainty trading opportunities to ensure that each rollover has a high probability of success.
Identify high-certainty opportunities: High-certainty opportunities usually appear during the consolidation phase after a sharp decline, followed by a price breakout. At this time, the probability of the market trending is high, and it's important to accurately judge the key points for trend reversals and decisively enter at the first opportunity.
Adhere to the principle of going long: In rollover operations, only choose to go long and do not participate in shorting. This allows you to focus on capturing the upward trend and reduces trading risks.
