Nine years ago, like all beginners, I watched Bitcoin rise from $789 to $19,783, succumbing to FOMO (fear of missing out) and went all in, resulting in a 40% drop a week later... But now my portfolio has outperformed the market by 470%, the key being—the method of rolling positions.
1. Core operation of rolling positions: Let profits run, risks controlled
1. Floating profit adding positions: Not about blindly adding, but about 'adding in the direction of the trend'.
The key to adding positions on floating profits is to ensure that the cost basis is lowered before acting; never blindly add positions just because there are profits.
For instance, if BTC rises from $30,000 to $33,000, when floating profits are at 10%, first confirm that the trend hasn't changed (like the daily line still above the 5-day moving average), then use 30% of the profit to add positions—this both amplifies gains and does not increase the risk to the principal.
Two 'appropriate times' for adding positions:
Converging breakout trends: After breaking through key resistance levels (like $40,000), add positions to capture the main upward wave, and when the increase reaches 10%-15%, quickly reduce the added positions to secure profits;
Pullback trends: When pulling back at moving averages (like the 20-day line), accumulate in batches to lower the cost of added positions.
2. Base position + trading rolling positions: Offensive when needed, defensive when necessary
Split funds, keeping part as a base position unchanged, while the other part trades high and low, with the specific ratio chosen based on risk preference:
Conservative: 70% base position + 30% trading, suitable for volatile markets, ensuring the base position is secure while trading reduces costs;
Radical: 30% base position + 70% trading, suitable for clearly trending markets, capturing segment profits with high liquidity.
For example: With a principal of 100,000, 70,000 buys BTC as the base position, and 30,000 is used for trading—when BTC rises by 5%, sell 20,000 to create a trading position, and buy back when it drops by 3%, repeating the process locks in profits while reducing the base position cost.
Two, the 'umbrella' for rolling positions: 3 principles to remember.
1. Mindset: Don’t let emotions destroy your rhythm.
The worst thing for rolling positions is 'being greedy when you profit and panicking when you lose'. I’ve seen people who have floating profits of 30% still hesitate to reduce their positions, only to see a pullback to their cost price; others cut positions after just losing 5%, missing subsequent rebounds.
Breakthrough method: When profits exceed 20%, forcibly withdraw 50% of profits to a bank card, using 'locking in profits' to combat greed; if losses exceed 5%, pause operations for 24 hours to avoid emotional decision-making.
2. Cognition: Money not understood cannot be earned
Rolling positions are not a 'universal formula', they must be based on understanding the underlying assets. For example, if you heavily invest in ETH but don’t understand the post-merge deflation mechanism and the progress of Layer 2 ecosystems, you won’t hold through rises and will hesitate to add during falls, making any method ineffective.
Action guide: Spend 3 days researching the core value of the asset (like BTC's value storage property, ETH's ecological advantages), understand 'why it rises' to maintain stability amid fluctuations.
3. Tools: Leverage is a double-edged sword
Rolling positions can use leverage to amplify returns, but beginners must remember: 3x leverage is the limit. More than 10x leverage may seem profitable, but a small fluctuation can lead to liquidation, leaving no chance to recover.
It is advisable to practice rolling positions with spot trading first, and only use 1-2x leverage once proficient, and ensure that leverage positions do not exceed 30% of total funds.
3. Beginner's survival guide: Survive first, then discuss rolling positions
1. Position management: Always keep some bullets
The most common mistake beginners make is 'going all in right away'. The correct approach is: use only 20% of your principal for the initial entry, keeping the remaining 80% as 'emergency funds'—to add positions during market crashes and withstand unexpected situations.
2. Stay away from 'pseudo-opportunities'
Avoid altcoins: 90% of altcoins rise quickly but fall even faster, making rolling positions easily turn into 'rolling losses';
Use contracts with caution: The funding rates and liquidation mechanisms of contracts are not friendly to beginners; practice rolling positions with spot trading first.
Always keep stable coins: USDT, USDC are like 'cash reserves', allowing you to buy the dip during crashes and hedge during uncertain markets.
3. Take profit and stop loss: Draw a 'red line' for rolling positions
Take profit: When a single profit reaches 15%-20%, reduce the position by 50% to avoid 'roller coasters'.
Stop loss: When a single asset loses 8%, decisively cut the position, preserving the principal for the next opportunity.
Four, why is 'spot trading + rolling positions' the optimal solution for ordinary people?
Among those who trade contracts, 9 out of 10 lose; while those trading spot, as long as the method is correct, find it hard to lose large sums of money. The core behind this is the tolerance for error:
Spot trading is a 'long-cycle game', even if bought at a high point, as long as the asset is of good quality (like BTC, ETH), it is likely to recover or even profit after the bull and bear cycles;
Contracts are a 'short-cycle game', leverage amplifies risks, and a small fluctuation can lead to liquidation, leaving no time to wait for a rebound.
My experience proves: Using spot trading for rolling positions, even with a few operational mistakes along the way, relying on long-term trends and compounding effects, I can still outperform the market—this is the 'sure way' for ordinary people in the crypto space.
Five, final reminder: The ultimate goal of rolling positions is 'to make money real'.
Don’t be fooled by 'digital wealth': When your account grows from 50,000 to 500,000, make sure to withdraw a portion (like 200,000), converting it to cash or buying assets, this is the essence of rolling positions.
The crypto space is not lacking in 'paper wealth', but in the clarity of 'locking in profits'.
Continue to follow [Crypto Circle Cloud Boat], I will share the 'segment signals' and 'adding position points' summarized from 7 years of rolling positions, helping you avoid detours and steadily make money in the crypto space.
Remember: Real rolling positions are not about 'betting big', but about 'calculating clearly'—every step has logic, every trade has a plan, so you can continue to profit amidst volatility.
