Today, I learned about the rolling position method and calculated the return rate, and my heart was racing with anxiety. I am still not suited for rolling positions.
The key to this method is predicting market trends, and it is only suitable for one-sided markets. The crypto market's decline is fast and fierce, and rolling positions are more applicable in a declining market than in a rising one. Rolling positions require high timing skills, and there are many opportunities for rolling positions in the crypto market, which are often fortuitous rather than sought after. The rolling position method is only suitable for extreme market conditions, especially in cases of extreme crashes.
During the epic crash of the crypto market caused by the 519 incident in 2021, the crypto influencer Liangxi became wealthy overnight by daring to short. Liangxi's short position increased from 1000 to 30 million through rolling positions.
On May 11, 2022, the Luna coin, jokingly referred to as the 'Moutai of the crypto world,' collapsed. In just one month, the price of Luna dropped from $119 to less than $0.0002, plummeting by 99.99%, leaving countless people with nothing overnight. This was also the best time to short Luna using rolling positions.
On November 9, 2022, the crypto market faced a meltdown. The globally top crypto exchange FTX and the hedge fund Alameda, founded by SBF, collapsed. Subsequently, the price of FTX's platform token FTT plummeted by over 90%, directly triggering the collapse of the entire virtual currency market. Starting from midnight on November 9, the price of FTT fell sharply, dropping from a high of $17.71 to $4.6 in less than three hours, a decline of 74%. This was the best time to short FTT using rolling positions.
Additionally, the last surge phase of a bull market for Bitcoin, which is fast and fierce, is the best time for rolling positions to go long. The decline phase after the peak of the bull market is the best time for rolling positions to go short.
Many friends still do not know what rolling positions are, let me repeat.
Rolling positions are defined as 'small funds, high leverage, all-in on the spot, liquidation stop-loss, and adding positions with floating profits.' Generally, a leverage of 10 times is chosen, with liquidation occurring at a 10% drop from the peak.
The advantage is that in a one-sided market, it can quickly realize a hundredfold myth. After using rolling positions, there is no longer fear of price fluctuations, as there is only one top in a bull market, and regardless of how much it retraces, it will rise again.
The downside is that it is a matter of life and death, only effective in one-sided markets; you must use small funds that won’t hurt if lost. It mainly depends on opportunities, and only a few insightful individuals can achieve great success.
The difficulty lies in the fact that when opportunities arise, it tests one’s courage and mindset.
Why has the rolling position method only recently been introduced? It is because the rolling position method is effective in a bull market with one-sided trends. The crypto world has seen overnight wealth during the 519 incident; it was only later understood that it was the one-sided market that made it possible, while the non-one-sided market ultimately led to losses. Circumstances create heroes; the same method can have vastly different outcomes in different market conditions. When the wind blows, even pigs standing in the wind can fly; but once the wind stops, it’s the flying pigs that will fall.
Several FAQs about the rolling position method.
How much capital is suitable for rolling positions? It is generally suitable for small funds, typically choosing an amount you can afford to lose, preferably not exceeding 10% of the principal.
Which varieties are suitable for rolling positions? Generally, it is suitable for large market cap varieties that only rise and do not fall or are not easily manipulated, such as Bitcoin, Ethereum, US stock indices, etc. Playing with altcoins carries higher risks.
What leverage should be chosen for rolling positions? Generally, a leverage of 10 times is chosen, with liquidation occurring at a 10% drop from the peak; the larger the leverage, the higher the risk.
How to operate rolling positions in the crypto market? Generally, choose the full contract mode, where floating profits can be used as margin to increase positions. If you choose the incremental position mode, you need to close profitable positions before continuing to open new ones.
When is it necessary to withdraw from rolling positions? When there are substantial profits, you can first withdraw the principal, and later, when profits are greater, you can withdraw a portion of the funds.
How powerful is a rolling position? Generally speaking, in a smooth one-sided market, if it rises by 50%, rolling positions can achieve a maximum profit of 100 times.
Remember, the rolling position method is the fastest way to get rich. However, it is only effective in one-sided markets, especially for small retail investors. It is the quickest method to achieve a turnaround and class leap. If the retail investors want to learn, they might as well take out 100 units to try. If learned, it will benefit for a lifetime; if not, only a small loss.
The rolling position method can indeed lead to sudden wealth, but it is also very difficult and requires a skilled individual who can seize opportunities. Otherwise, if leverage is not well controlled, a single retracement can lead to total liquidation.
A simpler explanation for rolling positions is that it favors the bold and starves the timid. If a rolling position fails once, it’s game over. No matter how much was earned beforehand, a single failure means game over, and crucially, rolling positions can repeatedly undermine one’s mindset. The difficulty lies in judging the larger market conditions. Rolling positions literally mean continuously rolling your position.
Friendly advice: when judging that the market conditions are good, rolling positions should still be used sparingly. Roll 2 to 3 times, and take profits when available. We often hear 'add positions with floating profits,' but it is often followed by 'a total loss.' Here, adding positions with floating profits is not mindless rolling but rather rolling at critical moments.
The rolling position method, simply put, is 'small funds, high leverage, all-in on the spot, liquidation stop-loss, and adding positions with floating profits.' The rolling position method is a matter of life and death; most players will quickly lose everything, but in a one-sided market, the rolling position method is the fastest way to achieve a hundredfold gain. It is a lifeline in a situation of life and death, the so-called circumstances create heroes.
However, the actual operation of the rolling position method is not easy; it requires courage, timing, and personal insight. Remember the key points: use small funds to roll, make use of trial-and-error opportunities, and use ten times leverage, withdrawing the principal after doubling, etc.
In my spare time, I started to seriously study trading books, researching what the most correct operating methods are, what seems correct but is actually wrong, and the pros and cons of each operating technique, thus creating a trading system suitable for the characteristics of the crypto world.
