In the crypto world, is it possible to turn 5000 into 10 million? In 2024, I personally tried, growing from around 700 to 1.8 million in a year. This is not a myth; it depends on whether you can grasp the method! The wealth code I summarized is rolling, but the gameplay is different from traditional cognition. Simple logic can continuously increase principal value in a volatile market. The Bit God will take you on a shortcut, revealing the secrets of perpetual principal.

I. Major Cognitive Revolution on Rolling: From 'Adding Positions on Floating Profits' to 'Locking in Profits for Reinvestment'

Principal protection is the key.

As soon as the first order earns a 50% profit, quickly initiate capital isolation, separating principal and profit. For example, if you enter with 5000U and it rises to 7500U, withdraw the 5000U principal, leaving the remaining 2500U as risk capital. This way, the principal is safe; even if the 2500U loses, just earning 100% again will return to the initial scale.

Advanced Profit Margin Formula

Phase One: Turn 2500U into 5000U (earn 100%), with 2500U in hand;

Phase Two: Use another 2500U to earn 5000U (again earn 100%), gaining another 2500U.

Keep cycling; every time you achieve a 100% return, your principal doubles.

Risk Control Model

Maximum drawdown must be well controlled; a single operation cannot exceed 20% of the principal. Always be prepared for liquidation defense, managing principal and profits separately so that it does not affect the principal pool.

II. Practical Strategies for Major Rolling Models (Different Market Conditions Correspond to Different Strategies)

Trend Rolling: The Accelerator in a Bull Market

Suitable Scenario: For major currencies like BTC and ETH, when there is a weekly breakthrough of previous highs and the trading volume increases.

Operating Method: Start with 5x leverage, add positions when earning 50%. Every time a key position is broken, such as at the Fibonacci 61.8% level or previous high resistance, add another 20% position.

Stop Loss Technique: Once it drops below the previous high, quickly take profit, setting a trailing stop loss 2% below the breakout point.

Volatility Rolling: The Reaper in Monkey Markets

Suitable Scenario: When the coin price has been consolidating along the middle track of the Bollinger Bands for over 3 days, with volatility less than 15%.

Operating Method: Keep leverage between 3-5 times, buying high and selling low. Reduce half the position when earning 20%. If it drops below the lower Bollinger Band or breaks above the upper band, decisively liquidate the position.

Crash Rolling: Can Make Money Even When a Black Swan Arrives

Suitable Scenario: When there is a single-day drop of more than 15% and the market fear index is below 20.

Operating Method: Bottom-fishing should be done slowly, adding 10% of the position every 5% drop, with a total position not exceeding 30%. Reduce half the position when there is a 10% rebound, strictly implementing the 'only take the middle segment of profits' fish body trading method. Also, synchronously allocate inverse ETFs to hedge against extreme reversal risks.

III. The Pitfalls of Rolling and the Struggle with Human Nature (90% of People Fall Here)

Cognitive Misconceptions

Adding positions on floating profits is particularly dangerous; a single 30% drawdown can wipe out previous profits. Moreover, with leverage, under 10x leverage, just a 10% market reversal could lead to liquidation.

Viewing Problems from Behavioral Economics

Fear of loss can lead to blind position increases during losses, amplifying pain; confirmation bias can cause one to hold onto losing positions just to prove oneself right.

A disciplined execution system is very important.

You need to write a trading log, noting the trigger conditions for each operation and what went wrong. You should also draw a capital curve to clearly understand the performance of the principal and profits operating separately.

IV. Advanced Rolling Strategy Gameplay (Enhancing Capital Efficiency)

Cross-Asset Hedging: Utilize the asset difference arbitrage between BTC and DEFI tokens, or use the negative correlation between traditional assets and cryptocurrencies to hedge risks.

Intraday Rolling: Utilize the volatility differences across different time periods to achieve T+0 operations for the day.

Cross-Cycle Rolling: Operate by seizing the opportunity during daily pullbacks within a weekly trend.

Dear crypto friends, take a good look at the nuances of rolling; these are all practical experiences. The more you learn and apply, the more you earn. Solidify this knowledge for practical application, and the next millionaire could be you!

Is the market jumping up and down, leaving you confused? Stuck and unsure how to resolve it? Even feeling led astray in your operations? Don't hold it in; come find me to chat, and I'll help clarify your thoughts~