Rolling Warehouse Risk

Let's talk about the rolling warehouse strategy. Many people think this is risky. I can tell you that risk is proportional to reward.

Let's talk about the rolling warehouse strategy. Many people think this is risky. I can tell you that the risk is very low, far lower than the logic of the futures trades you're making.

If you only have 50,000, how do you start with 50,000? First, this 50,000 should be your profit. If you're still at a loss, don't bother looking.

If you open a position in Bitcoin at 10,000 with a leverage of 10 times, using a isolated margin mode and only opening 10% of the position, that's just 5,000 as margin, which is equivalent to 1x leverage, with a 2% stop loss. If you hit the stop loss, you only lose 2%. Only 2%? That's 1,000. How do those who get liquidated actually get liquidated? Even if you get liquidated, isn't it only a loss of 5,000? How could you lose everything?

If you're correct and Bitcoin rises to 11,000, you continue to open 10% of your total capital, also setting a 2% stop loss. If you hit the stop loss, you still gain 8%. Where's the risk? Didn't they say the risk is very high? Following this logic...

If Bitcoin rises to 15,000, and you add positions smoothly during this 50% market move, you should be able to earn around 200,000. Catching two such market moves would be around 1,000,000.

There is fundamentally no compound interest; 100 times is made through 2 times 10 times, 3 times 5 times, and 4 times 3 times earnings.