I often mention rolling positions. In my view, rolling positions are the most stable strategy for contracts, almost ensuring absolute safety of the position. Some people ask how to operate rolling positions? Today, I will share it with everyone here.
I will talk about my own method:
Uptrend phase: go long, position should not exceed 1/3 of the available funds. Sell high and buy low, take profit 1/3 near each resistance level, re-enter long with another 1/3 on pullbacks. You can also pre-position to take profit near two resistance levels above to prevent sudden spikes and maximize profit locking. Leave a small position to hit the peak during the surge until it hits the stop loss on a pullback.
Downtrend phase: go short, position should not exceed 1/3 of the available funds. Take profit 1/3 near each support level, add short 1/3 on rebounds. You can also pre-position to take profit near two support levels below to prevent sudden accelerated drops and maximize profit. Leave a small position to hit the low during the surge until it hits the stop loss on a rebound.
Hedging: simultaneously operate with low long and high short, which requires specific timing. This is suitable when the candlestick chart reaches a triangular consolidation area, continuously moving sideways for more than one or two weeks, without breaking above or below. Such market conditions are suitable for long-short hedging. Generally not applicable.
Rolling positions are suitable for volatile markets and one-sided trends. In any situation, maximize compound interest and avoid risks. Of course, its drawback is that short-term returns are not significant, making it unsuitable for those seeking to get rich overnight. Some people often see my weekly returns may only be a few points to dozens of points, but my profits might be several tens of thousands to over a hundred thousand, mainly because my position is in the seven figures, using medium to low leverage. Rolling positions are also suitable for all cryptocurrencies, but if the daily volatility is too high and you can't hold it, you will need collateral above 10 times the position to ensure absolute safety. However, this risk exists; if it goes to zero in a short time like Luna, your assets will also go to zero. Therefore, the contracts are best focused on BTC and ETH.
