Student Old Chen sent me his settlement receipt last week: he entered with 500U and rolled it to 5230U in 3 months. He used to always say, 'I have bad luck and can't catch doubling coins'; now he fills out the formula every day, and even his partner knows, 'If there’s a floating profit of 25%, add to the position.'

This is not some kind of mysticism; it's the rolling position formula I've developed using 312 real trades. Selecting coins, adding positions, risk control, emotions — every step has a clear scale, just like solving a math problem; follow the steps and you can get results. Today, I will break down this formula so even a fool can follow it.

1. Golden formula for selecting coins: 3 indicators to filter out coins that can rise 10 times and avoid 90% of pitfalls.

When Old Chen first used the formula to select coins, he filtered out ARB. At that time, all three signals on the weekly chart were met, and it indeed rose 8 times later.

1. Weekly EMA golden cross pullback: a signal light for the bull market to start.

Open the weekly chart and look for when EMA21 (white line) crosses above EMA55 (yellow line) for coins; this is called a 'golden cross.' If it pulls back after the golden cross without dropping below EMA21, it's the entry point.

In 2023, LDO had a golden cross at $0.8 and stabilized after pulling back to $0.9. I instructed Old Chen to enter with a 17% position (85U). Later, it rose to $5.6, making a profit of 476U — coins that pull back after a golden cross are like cars just filled with gas, with the most explosive potential.

2. Volume must expand to 2.3 times: to see if it's a real breakout or a false surge, look at this number.

When selecting coins, open the 'volume indicator'; the average trading volume over the last 3 days must be more than 2.3 times the average of the past 20 days.

Old Chen filtered out a coin: it seemed like a breakout, but the volume only reached 1.8 times. Later, it indeed dropped back; he said, 'Thank goodness the formula saved me; I would have definitely chased it before.' A breakout without enough volume is like a person who hasn't eaten enough trying to run; they won't last long.

3. At key points, there must be 3 large orders of over 500,000 U: only coins with the main force are safe.

At support levels (like previous highs or the EMA21 line), you must see 3 buy orders over 500,000 U. This indicates that the main force is 'supporting the bottom' rather than retail investors blindly trading.

When ARB was at $1.2, Old Chen saw 600,000 U buy orders for three consecutive days and decisively added to his position. Later, when it rose to $1.8, he laughed and said, "The main force is even more eager than I am to push up the price."

2. Rolling position addition formula: 17% → 34% → 68% → 112%, profits roll like a snowball.

Old Chen's 500U rolled up like this:

1. First position at 17%: use small money to test and make mistakes without significant loss.

17% of 500U is 85U; buy this much first. No matter how optimistic you are, never buy more.

This 85U is like a 'scout'; it can lose up to 85U (according to stop-loss rules), but it can be added to when it makes a profit. Old Chen made a 25% profit on his first purchase of ARB, triggering the condition to add to his position — small positions provide a 'margin for error' for beginners.

2. Add to 34% with a floating profit of 25%: use profits to take risks.

If 85U earns 21U (25%), then add 85U (total position 34%). At this point, total cost is lowered, making it less likely to incur losses even if the price drops.

After Old Chen finished adding to his position, ARB rose another 30%, and he made a total of 136U from the two trades. He said, "In the past, I would run after making 20%. Now I realize that letting profits roll is the real skill."

3. Increase to 68% during secondary volume expansion: add aggressively when the trend accelerates.

When the coin price expands for the second time (volume returns to 2.3 times), add 170U (total position 68%). At this point, the trend is already clear, and you can be a bit bolder.

But there is one strict rule: you must add to your position only when the current price is lower than the previous high. When ARB rose to $1.5, Old Chen wanted to add to his position but saw that the previous high was $1.6 and held back. Later, when it pulled back to $1.4 and he added more, he made an extra 20% — chasing prices to add to positions is the biggest pitfall for retail investors.

4. Increase to 112% at the peak, but the leverage must decrease.

You can add leverage on the last wave, but there is a formula:

  • Use 3x leverage when the price is within double the cost price.

  • Between 2-5 times, use 2 times leverage.

  • For more than 5 times, use only 1 times leverage.

When ARB rose to $3 (cost $1.2, 2.5 times), Old Chen added the last position with 2 times leverage, earning the most while keeping the risk controllable. Using high leverage at high levels is like putting a bomb on your profits.

Three, risk control formula: 3 automatic switches to prevent liquidation.

The core of this formula is to let the account 'automatically hedge.' Old Chen's partner helped him remember three numbers: 6.8%, 5%, 2.7%.

1. Dynamic profit-taking: reduce positions when it pulls back 6.8% after a new high.

Each time a new historical high is reached, set the profit-taking line at 'new high - 6.8%'. For example, if ARB rises to $5, the profit-taking line is $5 - $5 × 6.8% = $4.66; sell half when it drops to this price.

Old Chen relied on this trick to preserve 70% of his profits during the ARB pullback. He said, "I always waited for rebounds before, but the longer I waited, the more I lost."

2. Reduce leverage by 5% every 8 hours: do not act like a 'death squad' at high levels.

After opening leverage, reduce it by 5% every 8 hours. For example, if you start with 3 times leverage, it becomes 2.85 times after 8 hours, and 2.7 times after 16 hours...

This trick saved Old Chen once: he opened a 3x leverage position on ETH at a high, which dropped to 2.7 times after 16 hours; later, during the crash, it was fortunate that the leverage was low, so he didn't get liquidated.

3. If USDT premium exceeds 2.7%, immediately clear positions.

Open the exchange and check the 'USDT/CNY' exchange rate; normally, it should be between 7.1 and 7.3. If it exceeds 7.3 + 7.3 × 2.7% = 7.5 times, it indicates that everyone is frantically exchanging for stablecoins (fear of falling), and you must clear your positions.

In March last year, USDT was at a premium of 7.6. Old Chen cleared his positions according to the formula and avoided a subsequent 20% crash. The USDT premium is the market's 'fear index,' more accurate than any expert prediction.

Four, emotional formula: 3 time switches to prevent the brain from causing trouble.

In the past, Old Chen always added to his positions at 4 a.m.; now he closes the software at that time. This is the most counterintuitive yet effective part of the formula.

1. Do not operate from 3-5 a.m.: this is when manipulators love to 'take advantage.'

Data statistics show that 'false breakouts' during this period are 3 times more likely during the day. Old Chen set a phone alarm to automatically lock the screen at 2:50 a.m.; he wouldn't open positions no matter who called out.

2. Do 10 minutes of deep breathing before trading: let the brain 'shift gears.'

Now, before the market opens every day, Old Chen takes 10 minutes to breathe deeply while looking at the K-line (inhale for 4 seconds, exhale for 6 seconds). He said, "I used to be shaky when opening positions, but now my heart doesn’t race." With stabilized emotions, decision-making won’t become distorted.

3. If profits exceed 50%, enforce a 48-hour cooldown.

Lock in profits after making 50%, and do not open new positions within 48 hours. After Old Chen made 50% profit on ARB, he wanted to add to his position but was stopped by the formula, thus avoiding a pullback. It's easy to make foolish mistakes after a profit, so you must 'cool down' your brain.

Formula for players with 500U: just fill it in and you can use it.

It's better for a team to identify key support points in advance than for one person to stare at K-lines guessing. On the edge of liquidation, it's better to have someone say, "Let’s close half the position first" than to grit your teeth and hold on. There's no need to endure the hardship of fighting alone. We explore the direction and control the risks; you just need to follow the rhythm. I have always been here, waiting for you to set sail together. If your execution ability is not strong, you might as well pay attention to @bit多多 and learn operations with Duoduo.

Remember: the 10x returns in the crypto space are hidden in numbers like '17% position' and '6.8% profit-taking.' Following the formula mechanically is 100 times more reliable than relying on intuition. Now open the K-line chart, use the formula to find the first coin, and the switch for making money is actually at your fingertips.