Liangxi's Rolling Warehouse Operation Method mentions a high-frequency, low-position, trend-following trading strategy. Below is an analysis of this strategy, its pros and cons, and suggestions for avoiding pitfalls:
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Rolling Warehouse Strategy Analysis
Core Logic: Pursuing compound growth through small positions, high-frequency trading, combined with trend-based position increases and flexible profit-taking.
Strategy Characteristics:
Building Position: Invest 20% of capital (e.g., 20U out of 100U) at key price points.
Adding Position: Increase position by 10% when the price rises by 10 points, following the trend.
Stop Loss: Close positions decisively when the stop-loss point is breached, controlling losses.
Take Profit: Close 70%-80% of positions near target points to lock in profits, raising stop loss for the remaining position to capture larger gains.
Rolling Principles:
Small Steps Fast Running: Low position (20%) reduces the risk of liquidation.
Trend Position Addition: Add positions after confirming an upward trend, avoiding blind chasing of highs.
Flexible Profit Taking: Close positions in batches to lock in profits, while the remaining position bets on the trend.
Compound Interest Effect: Multiple small profits (e.g., 30%, 20%) rolling positions quickly amplify capital (e.g., from 100U to 203U).
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Strategy Pros and Cons
Pros:
Risk Control: Low position (10%-20%) + strict stop-loss, limiting single loss (e.g., 2%).
Trend-Based Operation: Trend position addition reduces counter-trend risk, suitable for oscillating or trending markets.
Compound Potential: High-frequency trading + small profits can achieve rapid capital growth in a short period.
Cons:
High-Frequency Trading Pressure: Requires frequent monitoring of the market, testing discipline and emotional control.
Leverage Risk: Using high leverage (e.g., 50x), although not explicitly mentioned in the strategy, indicates potential risks based on historical trading styles.
Market Dependence: The strategy relies on clear trends, and sideways or volatile markets can lead to frequent stop-losses.
Psychological Challenge: Requires decisive stop-loss/take-profit actions; greed or hesitation can lead to expanded losses.
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Conclusion:
The rolling warehouse strategy achieves compound growth through low positions, high-frequency trading, trend-based position additions, and flexible profit-taking. Theoretically, it can roll small funds (e.g., 1000 yuan) into millions, but it requires extremely high discipline and market sensitivity. Its success relies on extreme market conditions and high leverage, making it difficult for the average person to replicate. The key to avoiding pitfalls lies in strict risk control, emotional management, and choosing suitable market conditions; do not blindly follow โmyths.โ
