Today I learned a bit about the rolling position method, calculated the return rate, and my heart is racing nervously. I still don't think I am suitable for rolling positions.
The key to this method is the market prediction, and it is only suitable for one-sided markets. The cryptocurrency market's decline is fast and fierce, and the downtrend is more applicable than the uptrend. Rolling positions have a high requirement for an individual's ability to grasp timing, and there are many opportunities for rolling positions in the cryptocurrency market, which are often serendipitous rather than sought after. The rolling position method is best used in extreme market conditions, especially in extreme downturns.
During the epic collapse of the cryptocurrency market on May 19, 2021, the internet celebrity Liangxi became incredibly wealthy and famous overnight by boldly shorting the market. Liangxi's short position grew from 1000 yuan to 30 million yuan through rolling positions.
On May 11, 2022, the cryptocurrency Luna, humorously dubbed 'the Moutai of the cryptocurrency circle', collapsed. In just one month, the price of Luna dropped from $119 to less than $0.0002, a staggering 99.99% crash, leaving countless people bankrupt overnight. This was also the best time to short Luna using rolling positions.
On November 9, 2022, the cryptocurrency market experienced a major crash. The global leading cryptocurrency exchange FTX, founded by SBF, and the hedge fund Alameda faced a crisis. Subsequently, the price of FTX's platform token FTT plummeted by over 90%, directly causing the entire virtual currency market to collapse. Starting from 12:00 AM on November 9, the price of FTT continuously declined, and in less than 3 hours, its price fell from a high of $17.71 to $4.6, a drop of 74%. This was the best time to short FTT using rolling positions.
Moreover, the final surge phase of a bull market for Bitcoin is the best time for rolling positions to go long. The subsequent decline phase at the market peak is the best time for rolling positions to go short.
Many friends still do not know what rolling positions are, let me repeat.
Rolling positions are defined as 'small funds, high leverage, all-in on the spot, stop-loss at liquidation, adding positions on floating profits', generally using 10x leverage, and liquidating when the peak drops by 10%.
The advantage is that in a one-sided market, it can quickly achieve a hundredfold myth. After using rolling positions, there is no longer fear of prices because there is only one peak in a bull market, and no matter how much it retraces, it will rise again.
The disadvantage is that it is extremely risky, only effective in a one-sided market, and one must use small funds that do not hurt too much when losing. It mainly depends on opportunity, and only a few insightful friends can achieve great success.
The difficulty lies in the fact that when opportunities arise, they test courage and mindset.
Seeing the rolling position method in the cryptocurrency market gives a heart-pounding feeling.
One tree cannot make a forest, and a solitary sail cannot go far! In this circle, if you do not have a good community and no insider information from the cryptocurrency market, then I suggest you follow Xiaoxun, who will guide you to profit, and you are welcome to join the team!!!$BTC $BTC