In the crypto market, some people stay up late staring at K-lines, but end up with only a small balance at the end of the month; while others appear to be casually trading but can quietly turn 50,000 into a million amid fluctuations. The difference isn’t luck, but a set of "rolling position accumulation principles" that most people overlook. As a veteran who has been in the contract market for 5 years, today I will break down the practical logic of rolling positions that have been tested through bull and bear markets, helping you avoid at least 3 years of detours.
Rolling positions are not scary; uncontrolled leverage is the root cause of liquidation.
Many people immediately associate "rolling positions" with liquidation, which is actually the biggest misunderstanding of the strategy. The core of rolling positions is "adding to positions with the trend"; the real risk never lies in the strategy itself, but in uncontrolled leverage and position management. I have seen too many novices go all-in with 10x leverage, calling it "rolling positions", only to find that a small fluctuation leads to total loss. This is not rolling, but gambler's suicide.
Real rolling positions should look like this: for example, if you have 50,000 in capital, only take out 10% (5,000) as initial margin, using 3x leverage for Bitcoin — at this point, the actual leverage is only 0.3, equivalent to using small funds to test. At the same time, set a 2% stop-loss line; even if the market moves against you, the maximum loss is only 100, which has almost no impact on total funds. When the market rises as expected by 10%, reaching a profit of 5,000, take 5,000 from the profit to open a second position with the same leverage, still strictly controlling the stop-loss at 2%. This way, every step of increasing the position is buffered by profit, keeping the principal safe; this is the correct way to open rolling positions.
Remember: A rolling position with 3x leverage and strict stop-loss is safer than naked trading with 1x leverage; but operating with 10x leverage and no stop-loss can instantly wipe you out, even in a bullish market.
Capital management: Lock risks within a "bearable range".
The first rule to survive in the crypto market is not to find a hot coin, but to learn how to "insure" your capital. My own capital pool always follows a "thirds rule": one-third of total funds for buying spot to create a base position, one-third for mid to long-term contract rolling positions, and the remaining one-third is always idle, no matter how good the market is — this part of the money is "emergency funds" for extreme situations.
Specific advice for ordinary people: If you have 300,000 in funds, take at most 30,000 to play contracts (one-tenth of the spot), and divide this 30,000 into 3 parts, each part being 10,000. Always only use one part of the funds to open a position; if you profit, transfer half of the profit out to save, and if you lose, never supplement from the other two parts. This way, even if a certain operation fails and leads to liquidation, the maximum loss is 10,000, and the remaining 20,000 can still continue to operate without causing significant injury.
I have seen too many people aggressively increase their positions when they are profitable and borrow money to supplement their positions when they are losing, resulting in small losses turning into big losses. Remember: profit in the contract market comes from "probability money", not from "all-in gambling". Leave enough room for error to wait for the real big trend.
The core of growing small funds: earn "trend money" through mid to long-term strategies, rather than gambling on short-term fluctuations.
Many people think that small funds need to rely on short-term high-frequency trading to double quickly, but this is actually the most fatal misconception. Short-term trading seems to present many opportunities, but the costs from fees, slippage, and emotional fluctuations create a long-term black hole that devours capital. I’ve seen cases where a 30,000 capital was reduced to only 2,000 after a year of short-term trading, but I rarely see failures in mid to long-term rolling positions.
To grow small funds, you must learn to "wait for large trends." Just like bamboo that takes 4 years to grow only 3 centimeters, but in the fifth year can grow 30 centimeters daily, profits in the crypto market often concentrate in a few large trends. For example, Bitcoin rose from 16,000 to 42,000 in 2023. In this 3x trend, using 30,000 capital with a rolling position strategy: starting with an opening position of 10,000, adding to the position every time it rises by 20%, and strictly enforcing stop-loss, reaching 270,000 is not difficult at all. Capturing two such trends, reaching a million becomes a natural outcome.
Don’t fixate on 1% or 2% fluctuations every day; real big money is always hidden in trends that you are willing to patiently wait for.
Essential position management tips: 3 practical details that ensure you make a profit without loss.
Finally, here’s a valuable position management tip I summarized after losing a six-figure amount:
Fixed ammunition pool: Each time you open a position, only use a fixed amount (for example, 10,000 USDT). After making a profit, transfer out half, and if there’s a loss, replenish from the profits, always keeping the opening capital unchanged. This way, regardless of profit or loss, your mindset will remain stable, and your operations can be consistent.
Leverage "differentiation": use a maximum of 5x leverage for Bitcoin and a maximum of 3x leverage for altcoins. Mainstream coins have relatively controllable volatility, while altcoins have more sudden risks, requiring lower leverage. Don’t let short-term gains cloud your judgment.
Set stop-loss when opening positions: my stop-loss is always set at the time of opening a position, with Bitcoin not exceeding 3% and altcoins not exceeding 5%. I’d rather miss 10 opportunities than risk one liquidation.
The crypto market never lacks opportunities, but what it lacks are those who can control their desires and maintain discipline. Rolling positions are not a magic trick for quick wealth; they are a tool to let profits grow with the trend. Remember: true trading experts are not those who can seize many opportunities but those who can avoid many traps.
If you find today’s content enlightening, like and follow me. In the next issue, I will share "How to Accumulate Chips Using Rolling Position Strategy in Bear Markets", helping you layout for the next wave of trends in advance. The market may torment us a thousand times, but our strategy remains unchanged. Follow me and let’s steadily profit in the crypto market together!
