Rolling warehouse trading operation details
I. Preliminary preparation details
- Asset selection: Choose highly liquid and actively volatile cryptocurrencies (such as mainstream coins or popular altcoins), avoiding excessive slippage due to insufficient trading depth.
- Leverage setting: Choose according to your own risk tolerance; beginners are advised to start with low leverage (such as 2-5 times), while experienced traders should also keep it within 20 times to avoid instant liquidation due to high leverage (above 50 times).
- Time cycle selection: Focus more on short cycle candlesticks (such as 1 minute, 5 minutes, 15 minutes), matching high-frequency trading rhythms, while also referencing slightly longer cycles such as hourly charts to judge the general direction, avoiding counter-trend operations.
II. Trading execution details
- Opening timing: Capture entry signals by combining technical indicators (such as short-term moving average crossovers, MACD golden/death crosses, RSI overbought/oversold), for example: go long when a 15-minute candlestick shows a bottom divergence and RSI is below 30, and go short when there is a top divergence and RSI is above 70.
- Holding duration: Each position usually lasts no more than a few hours, or even a few minutes, adhering to the principle of 'taking profit when it’s good'; close the position when profits reach expectations (e.g., 1%-3%), avoiding greed and prolonged battles.
- Capital rotation: Immediately reinvest the principal + profits into the next trade after closing a position, maintaining continuous capital operation, but reserve 10%-20% of funds as backup for sudden market conditions to add to positions or cut losses.
III. Risk control details
- Stop-loss and take-profit settings: Each order must have a forced stop-loss (e.g., automatic closure at a 2% loss); take-profit can be staged (e.g., take half profit at 1%, and let the rest follow the trend), eliminating hesitation in manual closure.
- Position management: The capital invested in a single trade should not exceed 10%-15% of total funds, avoiding heavy positions in a single direction to prevent excessive losses during market reversals.
- Emotion management: Pause operations when experiencing consecutive profits or losses to avoid disrupting rhythm due to greed (increasing leverage) or impatience (frequently opening positions); set a maximum daily loss limit (e.g., 5% of total funds) and stop trading when reached.
IV. Practical considerations
- Avoid extreme market conditions (e.g., during major positive/negative news releases), as volatility is high and slippage risk is significant, making it easy to trigger stop-loss.
- Prioritize trading platforms with good depth to ensure buy and sell orders can be executed quickly, reducing losses caused by delays.
- Beginners are advised to practice on a demo account first, and only move to real trading after familiarizing themselves with high-frequency operation rhythms, avoiding direct exposure to high risks.
In summary, the core of rolling warehouse operations is 'high-frequency turnover + strict risk control', with each step focused on 'quick profit and loss control', requiring high discipline and market sensitivity. Proceed with caution.