Liangxi made 10 million by shorting with 10,000 capital; Tony made 20 million in a year with 50,000; the core strategy is rolling positions— a method of amplifying returns using high leverage and compound interest. Here are the key points of rolling positions:
The essence of rolling positions
Small capital + high leverage + compound interest: After each profit, reinvest the profits into the next trade to amplify returns.
Example: $300 capital, $10 per trade with 100x leverage, 1% fluctuation = 100% profit/loss. After profits, roll into the next order for compound growth.
Key Points:
Accurate directional judgment (bullish/bearish, avoid frequent switching)
Strict stop-loss (to avoid excessive single losses)
Gradually reduce positions after profits (to prevent profit withdrawal)
Tony's rolling position rules
Only roll positions in major trends (e.g., BTC unidirectional rise/fall)
Add positions when profitable, do not add when losing (to avoid emotional trading)
Set clear take-profit points (e.g., stop when earning $5,000)
Retain 50% of funds to deal with extreme market conditions (to prevent liquidation).
The fatal risks of rolling positions
Mathematical trap:
Even with a 60% win rate, the success probability of rolling positions 10 times in a row is only 0.6%.
Winning in the first 9 times, failing in the 10th can still lead to zero. Liquidity risk: large capital rolling positions may trigger reverse market volatility, leading to increased slippage.
Emotional Outburst: After consecutive stop losses, it's easy to over-invest and end up blowing up the account.
Conclusion
Rolling positions yield high returns but come with extremely high risks; suitable for experienced traders who can strictly discipline themselves. Ordinary people are more advised to use low leverage + trend following, avoiding blindly mimicking the extreme operations of Liangxi/Tony.
Ordinary trading: Single position opening, limited profit.
Rolling positions: Utilizing the effect of compound interest to achieve exponential growth in trending markets (e.g., Liangxi repeatedly increasing positions to short during ETH's sharp decline).
Conditions suitable for rolling positions
After the exchange's liquidation (forced liquidation leads to reverse volatility)
5 minutes before the launch of a new coin (low liquidity, high volatility)
On-chain whale activity (large transfers indicate short-term trends)
Can ordinary people replicate this?
Extremely difficult:
Requires full-time market watching (Tony trades for 16 hours a day)
High psychological quality (Liangxi blew up 37 times, and only succeeded after losing 5 million).
Alternative solutions:
Regular investments + grid trading (low risk, annualized 30%-50%)
Trend following + light position testing (1%-2% position tests).
Conclusion
Rolling positions yield high returns but come with extremely high risks; suitable for experienced traders who can strictly discipline themselves. Ordinary people are more advised to use low leverage + trend following, avoiding blindly mimicking the extreme operations of Liangxi/Tony.
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