Before starting, first understand the basic contract knowledge. With $100 at 3x leverage for going long, you need a drop of over 30% to get liquidated; generally, a signal to enter has already appeared.
For example, (dragonfly touches water W, bottom divergence W) there are rarely coins that continue to drop by over 30%, but that does not mean they won't drop by 20%, 10%, or 5%. However, all of this is within the expected volatility. Therefore, for popular altcoins' rolling base positions, just go long with $100 at 3x leverage.
For these popular altcoins, after listing on exchanges, many can be pushed up 1-2-3 times after a brief washout, so do not underestimate the charm of $100 at 3x leverage.
For example, the small hippo, MOODENG, we launched a few days ago, surged 3 times in just two days. This means that even with $100 at 3x leverage for going long, without taking any rolling operation, you could still earn over $1000.
If the process maintains a 3x rolling operation, it is possible to achieve a performance of $3000-5000-10000; conversely, if an epic crash occurs with a drop of over 30%, and liquidation happens, then your maximum risk is only $100.
Moreover, during this process, you can operate flexibly. For example, gradually transfer out floating profits until you transfer out all the principal. This way, you are left with pure profit for rolling operations, and you will have no psychological pressure.
So, the entire rolling process is as follows.
1. Recently popular altcoins.
2. Identify the entry signal.
3. Going long with $100 at 3x leverage.
If there is an upward move, increase the position with floating profits. If there is a downward move, generally a drop of 5%, 10%, or 20% does not need to be worried about; a drop of over 30% is needed for liquidation. As mentioned at the beginning, generally, based on the signals to enter, it is rare to continue dropping by 30%, but that does not mean it won't drop by 5%-10%-20%. This is the logic of $100 at 3x rolling base positions.
However, recently, with the increase in subscribers, I have also noticed that some students have started to mess things up, treating these altcoins as major currencies and recklessly going for 10x, 20x.
With just a slight push, they start to enter a (fragile mindset) situation. What to do? What to do? What to do?
In fact, this is quite foolish. The base positions of rolling operations are not the same as those conventional major currency positions; the strategies are completely different. You cannot apply the mindset of major currencies to these hot new coins because they are inherently volatile.
If you want it to go up but are unwilling to accept its volatility, it's like wanting to find a girlfriend at a nightclub but not wanting her to go to the nightclub. Where in the world does such a good thing exist?
So, you must remember! This is a base position for rolling operations; it does not require large funds with high leverage. Just $100 at 3x leverage for going long. If there is an upward move, you can increase your position with floating profits. If there is a crash, you will lose $100 (which requires a drop of 30%).
Of course, there is another option, which is to further reduce the capital. For example, we have $100 at 3x leverage, you can have $30-50 at 3x leverage, and for those who recklessly go for 10-20x, stop trading as soon as possible! This is not a major currency, these are junk coins! Suitable for small bets, not for large funds coming in to invest.
