I just learned the rolling over strategy today, and calculating the return almost gave me a heart attack—this method is too thrilling, it seems I am not suited for it.
To get back to the point, the most crucial aspect of this method is to predict the market in advance, and it is only suitable for one-sided trends. The cryptocurrency market tends to drop quickly and harshly, so shorting is more applicable than going long. Rolling over requires extremely high timing accuracy; although there are many opportunities in the cryptocurrency market, they are often serendipitous. In short, the rolling over strategy is only suitable for extreme market conditions, especially those extreme situations of sharp declines.
For example, during the major crash in the cryptocurrency market on May 19, 2021, the internet celebrity Liangxi became rich overnight by boldly shorting the market. His short position grew from a capital of 1,000 to 30 million.
Another example is the crash of Luna coin in May 2022, known as the 'Moutai of the cryptocurrency market,' which fell from 119 dollars to less than 0.0002 dollars within a month, evaporating 99.99%. This sharp decline was a golden opportunity for shorting.
Also, in November 2022, when FTX collapsed, the platform coin FTT plummeted 74% in three hours, crashing from 17.71 dollars to 4.6 dollars; such extreme market conditions are also suitable for rolling over to go short.
Additionally, the last stage of a bull market rises rapidly and fiercely, making it a good time for rolling over positions to go long; after the peak of the bull market, during the pullback phase, it is an excellent time to roll over positions to go short.
Many friends may still not be clear about what rolling over is, so let me explain it simply again: rolling over means 'small capital, high leverage, betting all in, stopping losses when liquidated, and adding positions when profitable.' Typically, 10x leverage is used, for example, if the peak falls 10%, it will be liquidated.
The advantage is that in a one-sided market, it can quickly achieve a hundredfold return; after using rolling over, you are less afraid of price fluctuations since there is only one peak in a bull market, and even if there is a pullback in between, it will eventually rise again.
The downside is that it is a matter of life and death, only suitable for one-sided markets, must use small capital (losing it all shouldn’t hurt), mainly relying on luck and insight, and only a few can make big profits. The difficulty lies in whether you dare to act when the opportunity arises and whether you can maintain a stable mindset.
Why are we only talking about the rolling over strategy recently? Because this method is most effective in a one-sided bull market. Like Liangxi becoming rich on May 19, it was fundamentally the one-sided market that made him; in a non-one-sided market, this method might even harm him. Circumstances create heroes; the same operation can lead to vastly different results depending on the market conditions. When the wind comes, even pigs can fly; when the wind stops, those who flew high at that time will be the ones who fall.
Common questions about rolling over positions:
How much capital to use? It is recommended to use a small amount of capital, not exceeding 10% of your principal, so that losing it all does not affect your life.
Which varieties are suitable? Prioritize large market cap coins like Bitcoin and Ethereum that are not easily manipulated; playing with altcoins is too risky.
What leverage to choose? Generally, use 10x leverage; the higher the leverage, the greater the risk.
How to operate in the cryptocurrency market? Use full position contracts; with floating profits, you can use them as margin to increase your position. In a staggered position model, you must first close your position with profit before re-entering.
When to withdraw? If you make a lot, first withdraw the principal, and later withdraw part of the profits when they are higher.
How powerful is it? In a smooth one-sided market, a 50% rise can lead to a maximum profit of 100 times through rolling over.
In summary, the rolling over strategy is the fastest way to get rich, but it is only effective in a one-sided market, especially suitable for small capital retail investors; it is the quickest way to turn around. Friends who want to try can start with 100 dollars (100 USDT) for practice; if you earn, it’s a big gain, and if you lose, it won’t hurt much.
However, this method is extremely difficult; if leverage is not controlled properly, a single pullback can lead to liquidation. In simpler terms, rolling over positions is like 'killing the bold while starving the timid.' If you fail once, all previous profits have to be given back, or even worse, you could lose everything. More importantly, rolling over positions constantly challenges your mindset; a single failure might lead to a breakdown.
Lastly, a suggestion: even if you judge the market well, don’t overuse rolling over; stop after two or three times and take your profits. What everyone often calls 'floating profit adding positions' often follows with 'losing it all'; here, adding positions is not mindlessly rolling over but seizing key opportunities.
In simple terms, the rolling over strategy is 'small capital, high leverage, betting all in, stopping losses when liquidated, and adding positions when profitable.' It’s a matter of life and death, but it is the only path to a hundredfold myth in a one-sided market. If you want to play, remember to use small capital and 10x leverage; after doubling, first withdraw the principal, and don’t be greedy.
During free time, flip through 'Reminiscences of a Stock Operator,' ponder over trading books, figure out which operations are correct and which seem correct but are actually traps, and gradually form a cryptocurrency trading system that suits you—this is the key to long-term survival.
I am Wenhua, a professional analyst and educator, a mentor and friend on your investment journey! As an analyst, the most fundamental thing is to help everyone make money. I will help you resolve confusion and issues with your trades, speaking with strength. When you are lost and don’t know what to do, follow me, Wenhua will point you in the right direction.
