In the world of cryptocurrency contract trading, 'rolling warehouse' is always a tempting term - it is regarded by some as a shortcut to 'leveraging small capital for great wealth', especially during periods of severe market fluctuations, which often give rise to astonishing stories of sudden wealth. In a previous round of cryptocurrency market crashes, trader Liangxi shorted with an initial capital of 10,000 yuan and ultimately achieved a profit of 10 million, further increasing the popularity of 'rolling warehouse'.
Why do most people fail when shorting, while Liangxi is able to return with a full load? The core answer lies in the 'rolling warehouse' strategy. And when it comes to rolling warehouses, we cannot avoid another name - Tony. For new traders, this name may be somewhat unfamiliar, but five years ago in the crypto circle, he was known as a 'super internet celebrity trader' alongside Liangxi and Hanbalongwang. His 'rolling warehouse myth' is still discussed by many: in 2021, Tony turned an initial capital of 50,000 yuan into 20 million yuan in just one year, relying on high leverage trading and precise rolling warehouse operations. His summarized 'rolling warehouse insights' are even regarded by some traders as the 'trading bible.'
However, the cryptocurrency circle is never short of 'million-level internet celebrities', but Tony is fundamentally different from most traders who profit from short-term market luck. If you want to find a reference, his trading style is quite similar to that of the 'wizard' of the same period—both rely heavily on trend judgment and strict risk control, rather than purely betting on market direction.
1. What is 'rolling positions'? It is not 'a gambler's game', but 'precise leverage reuse'
Many people mistakenly believe that rolling positions are 'frequent opening of positions under high leverage'. In essence, rolling positions are a strategy to achieve profit multiplication in trending markets through 'single small position trial and error, partially withdrawing profits after gains, and compounding the remaining funds'. Its core is not 'gambling', but 'controlling'—controlling single risk, controlling profit drawdown, controlling human greed, which requires accurate market judgment and iron-clad execution.
To better understand, we can break down a complete logic of rolling positions through a case close to real trading scenarios:
Suppose you have 300 USD capital (approximately 2000 yuan), planning to use a rolling position strategy to participate in Bitcoin contract trading. The core principle must be clear: do not go all in at once, but split the position to trial and error multiple times, using only 10 USD for each order, combined with 100 times leverage (Note: 100 times leverage is a common leverage multiple in cryptocurrency contracts, meaning that a 1% rise or fall in the market will correspondingly increase or decrease the account funds by 100%, magnifying both gains and risks).
Step 1: Determine the direction, trial and error with a small position
The prerequisite for rolling positions is 'correct direction'. Before opening a position, one must determine whether the market is bullish or bearish through technical analysis (such as candlestick patterns, moving average arrangement), market sentiment (such as capital flow, public sentiment heat)—for example, if Bitcoin continuously breaks through key support levels and the trading volume increases, it can be judged as a 'bearish trend'.
After determining the direction, open a short position with 10 USD (100 times leverage). At this point, be prepared for 'trial and error': if the market goes against the judgment, for example, if Bitcoin suddenly rebounds, when the loss reaches the preset stop loss line (such as 5 USD, which is 50% of the principal), one must decisively close the position to avoid excessive single losses.
Step 2: Earn profits, withdraw profits, and roll positions again
If the directional judgment is correct, for instance after opening a short position, if the Bitcoin price drops by 1%, based on the 100 times leverage effect, a 10 USD capital will generate 10 USD in profit, making the account funds 20 USD. At this point, the key operation comes: withdraw 10 USD as confirmed profit, and continue to open a short position with the remaining 10 USD capital + 10 USD profit (total 20 USD)—this is the core of 'rolling positions': using 'a portion of the profit' to cover the risk of the initial capital and using 'the remaining funds' to continue chasing trend profits.
If the market continues to drop by 1%, the 20 USD capital will earn another 20 USD, making the account 40 USD. At this point, the operation can be repeated: withdraw 20 USD profit (cumulatively earned 30 USD, covering 3 times the initial trial capital), and continue with the remaining 20 USD.
Step 3: Borrow the trend to achieve compounding multiplication
In Bitcoin's market, a single month with a rise or fall of around 10% is not uncommon. If one can catch such trends and strictly execute the strategy of 'take part of the profit after earning 1%, and add the remaining funds', the compounding effect of rolling positions can be astonishing:
Initial 10 USD trial, after the first profit, the funds become 20 USD (taking out 10 USD profit);
After the second profit, the funds become 40 USD (taking out 20 USD profit);
After the third profit, the funds become 80 USD (taking out 40 USD profit);
……
If you can continuously capture 5 instances of 1% rise or fall, the cumulative profit can reach 310 USD (initial 10 USD trial, cumulative withdrawal of 310 USD), equivalent to using 10 USD to leverage 31 times the profit; if you can capture 10 times, the profit can even exceed 10,000 USD—this is also the origin of the saying 'rolling 300 USD into tens of thousands of USD'.
2. The 'survival rules' of rolling positions: more important than skills is 'anti-human nature'
Traders like Tony and Liangxi can become rich through rolling positions, not just by 'good luck', but by adhering to the two core principles of rolling positions—setting clear goals and refusing greed. These two points are precisely the root of failure for most people.
1. Must set a 'take profit line': take the profit when it's good, lock in the gains
Rolling positions most abhor 'wanting to earn more after already earning'. Tony repeatedly emphasized in his sharing: 'Rolling positions are not about earning 'endlessly', but about earning 'definitely more'.' His operating habit is to set clear profit targets, for example, when the account funds reach 10 times or 20 times the initial capital, he will stop rolling positions, withdraw 80% of the profits, and leave only 20% of the funds to continue trading.
For example, if you roll positions with a capital of 50,000 yuan, when the funds reach 1 million yuan (20 times the return), immediately transfer out 800,000 yuan to the spot account or withdraw, leaving 200,000 yuan as 'new capital'—this way, even if subsequent operations go wrong, you can still preserve the core profit of 800,000 yuan and avoid the tragedy of 'from profit to liquidation'.
On the contrary, if greed is insufficient, for example, if one has already made 1 million and wants to continue to roll to 2 million, once the market suddenly reverses (such as cryptocurrencies surging or plummeting due to policy news), the account under high leverage could 'liquidate' within minutes, wiping out all previous profits. During the 2022 cryptocurrency bear market, many traders who imitated rolling positions faced liquidation due to 'greed and stubbornness', ultimately falling from millions in gains back to their principal or even into debt.
2. Learn to 'wait for the right moment': do not chase highs or sell lows, only catch the 'big trend'
Rolling positions are not about 'operating every day', but about 'patiently waiting for the market'. Tony once mentioned: 'There are only 2-3 times in a year that are truly suitable for rolling positions; most of the time, one should be in a cash position waiting.' His logic of operation is: when the market is in a volatile state (for example, Bitcoin fluctuating between 20,000 and 25,000 USD), he never easily opens positions, because there are too many 'false breaks' in volatile markets, which can easily lead to misjudgment; only when the market shows a clear single-sided trend (such as breaking through the 25,000 USD resistance level, or breaking below the 20,000 USD support level), and trading volume continues to increase, does he start trial and error rolling positions with small positions.
For example, during the single-sided bull market from 30,000 USD to 69,000 USD in 2021, Tony only started rolling positions after breaking through the critical 40,000 USD level, leveraging the persistent upward trend to achieve profit multiplication; during the subsequent period of volatility, he was almost in a cash position, avoiding losses from frequent operations.
For ordinary people, it is even more important to avoid the misconception of 'not being able to control themselves'—many people want to open positions whenever they see market fluctuations, operating dozens of times a day, seemingly 'seizing opportunities', but in reality, each opening consumes the principal, ultimately leading to losses due to fees and misjudgments.
3. The 3 core reasons why most people face liquidation in contracts: the 'human traps' that should be more vigilant than rolling position skills
Although rolling positions sound like 'quick money-making', the reality is: in the cryptocurrency contract market, over 80% of traders will ultimately face liquidation, and the core reason is not 'insufficient skills', but rather falling into 3 human traps:
1. Frequent operations: 'itchy hands' replace 'judgment'
Many people open positions not based on trend judgment but on 'seeing others make money and wanting to follow' or 'not knowing what to do when the market is stagnant'. For example, seeing someone in the group say 'Bitcoin is going to rise', they immediately open a long position; when the market falls, they quickly close and go short. This kind of 'frequent operations without a plan' not only incurs high transaction fees (the fee for a single contract transaction is about 0.1%-0.5%, and frequent operations will continuously consume the principal), but also leads to chaotic judgments causing 'double killing'—shorting when it rises and going long when it falls, ultimately causing the principal to shrink further.
2. Lack of patience: 'want to make quick money' replaces 'wait for the trend'
Rolling positions require 'waiting for the right opportunity', but most people always want 'to open a position today and double it tomorrow'. For example, using 1000 yuan capital to open a position, hoping to earn 10,000 yuan in a week, they choose a 500 times high leverage and operate fully in one go—once the market goes against their judgment, a rise or fall of 0.2% can lead to liquidation. In 2023, a trader used 5000 yuan capital to fully leverage 500 times to short Ethereum, only to find Ethereum surge 0.3% due to favorable news, instantly leading to liquidation, losing all 5000 yuan capital.
3. Not executing plans: 'emotional' replaces 'iron discipline'
Many people will make plans before trading, such as 'stop loss 5%, take profit 10%', but in actual operations, they are swayed by emotions: when the market falls, they always think 'just wait a bit and it will rebound', delaying stop loss, resulting in losses expanding to 20%; when the market rises, they feel 'it can rise more', unwilling to take profits, ultimately giving back profits or even turning into losses. Tony once said: 'The value of a trading plan lies in being able to control your hands during market fluctuations; otherwise, even the perfect plan is useless.'
4. How should ordinary people view 'rolling positions'? It is not a 'shortcut', but a 'high-risk tool'
Finally, it must be clear: rolling positions are not a 'universal key' for ordinary people to achieve rapid wealth growth, but a 'high-risk, high-threshold' trading strategy. Its success requires three prerequisites:
Professional ability: can accurately judge trends, understand candlestick charts and capital flow, rather than making trades 'based on feeling';
Discipline: strictly execute stop loss and take profit plans, not influenced by emotions such as greed and fear;
Risk tolerance: can accept 'trial and error losses', even 'liquidation to zero', and should not invest essential living funds into contracts.
For most ordinary people, rather than blindly imitating the 'rolling position myth', it is better to first build a solid foundation:
Understand the underlying logic of cryptocurrencies and do not participate in trades that you do not understand;
Use small funds to learn spot trading (rather than high-leverage contracts), accumulating market experience;
Reject the illusion of 'getting rich overnight' and understand that 'the essence of wealth growth is the realization of cognition and patience'.
After all, in the financial market, 'surviving' is always more important than 'making quick money'—those who can truly profit in the long term are not those who become rich overnight from rolling positions, but those who achieve wealth accumulation step by step through continuous risk control and cognitive enhancement.
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