Rolling position (also known as 'floating profit increase') is the core strategy for achieving exponential growth in leveraged trading in the cryptocurrency space, but its high returns come with extremely high risks. This article will analyze the underlying logic, operational techniques, and risk control rules of rolling positions using whale case studies and position model illustrations.
---
### ⚙️ One, the essence and core logic of rolling positions
1. Compound interest nuclear explosion formula
Profit = Capital × Leverage × Trend Strength × Number of Operations. The explosive power of small capital rolling positions comes from the combination of leverage and compound interest:
- Starting from 200 U, with 3 instances of 10x leverage doubling, it can reach 16,000 U (200×10×10×8), and if two trend segments are captured, earnings can exceed 35,000 U.
- Key point: Rolling position is a 'sniper' rather than a 'submachine gun', waiting empty 90% of the time to target only 1% of extreme trend opportunities.
2. Trend enhancement rule
Rolling position returns can reach 10-50 times that of spot in a one-sided market. For example, during the main upward wave of SOL in 2024, rolling position players went from 50,000 U to 370,000 U in 3 days, while spot returns were only 3-5 times.
3. Risk hedging mechanism
Capital exit first is the survival foundation for professional players:
- After doubling the initial position, immediately withdraw the capital, and only reinvest the profit +20% to continue rolling;
- Even if there is a subsequent liquidation, the original capital remains safe.
> Illustration 1: Rolling position compound interest model
> ```
> Capital 2000 U → Profit to 4000 U → Withdraw 2000 U capital → Remaining 2000 U profit continues rolling
> Profit 2000 U → Profit to 4000 U → Withdraw 2000 U → Remaining 2000 U enters the next round
> ```
> (Case source: Practical path from 2000 U to 28,000 U)
---
### 🎯 Two, the three major operational techniques of rolling positions
#### Technique 1: Opportunity filtering - Target only three types of signals
- During exchange liquidation: After large long and short positions are forcibly liquidated, the probability of reverse volatility exceeds 70% within 30 minutes (e.g., after ETH drops 15%, whales may counter-attack);
- In the first 5 minutes before a new coin goes live: Low liquidity causes drastic price fluctuations (e.g., rolling from 50,000 to 370,000 U three days before ENA's launch);
- Weekly level breakthrough confirmation: BTC/ETH breaks through previous highs with increased volume, and OBV energy tide synchronously reaches new highs (see illustration 2).
> Illustration 2: Trend breakthrough confirmation indicators
> (Assumed chart: BTC weekly chart breaks through the 100,000 U resistance level, accompanied by a 200%+ surge in trading volume and a sharp rise in OBV)
#### Technique 2: Dynamic position management - 3331 rule
- First position 30%: Test the trend (leverage ≤ 5 times);
- After profit, increase by 30%: Expand position after trend confirmation;
- Secondary profit increased by 30%: Heavy position during trend acceleration;
- Last 10%: The final blow in extreme markets.
> Note: First position profit of 50% triggers profit isolation, with capital exit only using profit for rolling.
#### Technique 3: Market matching rolling position model
| Rolling position type | Applicable scenario | Leverage suggestion | Key operation points |
|----------------|-------------------------|----------|---------------------------|
| Trend rolling position | Weekly breakthrough (e.g., BTC breaks previous high) | 5-10 times | Increase position by 20% for every breakthrough resistance level |
| Oscillating rolling position | Bollinger Bands narrow (volatility <15%)| 3-5 times | 20% profit reduction at 50% |
| Crash rolling position | Single day drop 15%+ panic index <20 | ≤3 times | Increase position by 10% for every 5% drop, total position ≤30% |
(Data compiled from)
---
### ⚠️ Three, the risk management rules of rolling positions
1. Dynamic stop-loss life-saving mechanism
- For every 50% profit, move stop-loss up by 30% (e.g., when going from 10,000 to 20,000 U, stop-loss rises from 8,000 to 14,000 U);
- Breakout rule: If account net value declines more than 15%, forced liquidation and a 30-day break.
2. Leverage death zone
- Over 10x leverage ≈ gambling (case: April 2025 BTC rose 5%, high leverage short position liquidation loss of 800 million U);
- Leverage formula: `Leverage multiple = Trend strength × Win rate` (oscillating market 1-3 times, one-sided market 5-10 times).
3. Three principles of liquidation protection
- Maintain a minimum margin of 3-5 times (e.g., liquidation requires 1,000 U, actual deposit 3,000-5,000 U);
- Monitor liquidation heatmap (e.g., ETH has concentrated liquidation orders in the 2400-2450U range, making it easy to trigger a rebound);
- Diversify targets (BTC + ETH + leading altcoins) to reduce single risk.
---
### 📊 Four, 2025 rolling position case analysis
Case: ETH whale rolling short position with a floating profit of 12.25 million U
- July 28th: Open short position of 20,000 ETH at 3,843 U (testing the position);
- August 2nd: ETH dropped to 3,600 U, floating profit increase of 20,000 units;
- August 3rd: Short 10,000 units, total short position 50,000 units (worth 170 million U), average opening price 3,634 U;
- Key risk control: Liquidation price precisely lowered to 3,634 U, with the current price at 2,409 U still having a safety margin of 44 U.
> Illustration 3: Relationship between whale rolling position and price
> (Assumed chart: ETH price candlestick overlayed with position histogram, showing three additional points at 3,843 U→3,600 U→3,634 U and the liquidation line shift)
Failed comparison case:
A trader used 25x leverage to short ETH, and due to not setting a dynamic stop-loss, lost 336,000 U within an hour. Main reason: The liquidation price was set rigidly (2247.1 U) and not adjusted down as profits increased.
---
### 💎 Five, the ultimate advice on rolling position strategies
1. Only 2-3 opportunities needed per year
80% of profits come from 20% of trend markets, while the rest of the time is spent learning while holding no position.
2. Use tools to replace human nature
Conditional orders + stop-loss plugins (e.g., AiCoin smart take profit and stop-loss) to avoid emotional trading.
3. Idle money gaming principle
Invested capital ≤ 5% of cash flow to avoid impacting daily life.
> 'Slow is fast, steady is fierce. In a bull market, many liquidations happen, and those who survive will eventually make money.'
The essence of rolling positions in the cryptocurrency space is a game of mathematical advantage and discipline. Mastering trend targeting, position management, and dynamic stop-losses are the three core principles to transform the 'dark rules' into a weapon for sustained profits.
