In the crypto space, most retail investors are still engaged in spot and contract trading, while true experts have already achieved wealth leaps using the 'compound rolling strategy'. Some turned 10,000 into 1 million in just three months; however, others lost everything due to a single mistake. The key lies in mastering this 'profit fission formula'.
Core logic of rolling profits
- Compounding effect: Assuming you have 10,000 in principal, using 10x leverage, and achieving three doubles, you could theoretically reach 1 million.
- Trend support: During a bullish market, the returns from rolling strategies can be 10 to 50 times those of spot trading.
- Risk hedging: Use profits for rolling operations to ensure the safety of the principal.
Three major rolling rules
Iron rule 1: Focus on the big trend
- Wrong practice: Frequently conducting rolling operations in small fluctuations.
- Correct method: Only take action during a bitcoin trending market or an explosive period for altcoins, with initial positions not exceeding 5x leverage.
Iron rule 2: Reasonably allocate profits for reinvestment
- Beginner’s trap: Running away after making money or reinvesting all profits (missing out on bigger opportunities).
- Professional strategy: After doubling the initial investment, immediately withdraw the principal and continue rolling with pure profits plus 20%. This way, even if the market reverses, your principal remains safe, and your mindset will be more stable.
Iron rule 3: Set dynamic stop-loss
- Case warning: In April 2024, a player lost 2 million in profits in just one hour due to not setting a stop-loss.
- Correct practice: For every 50% profit, move the stop-loss up by 30% (for example, if it rises from 10,000 to 20,000, the stop-loss should be adjusted from 8,000 to 14,000). When profits retract more than 20%, force liquidation to protect remaining funds.
The three types of currencies most suitable for rolling
1. Bitcoin: Use 5x leverage for rolling operations in a trending market.
2. Leading altcoins: Such as SOL, AVAX, etc., can use 10x leverage during explosive periods.
3. New coin mining: Arbitrage on futures price differences before listing, although the risk is extremely high, the returns can be quite astonishing.
Case sharing: A player used rolling tactics before ENA went public, turning 50,000 into 370,000 in just three days.
Common pitfalls of rolling
- Averaging down against the trend: This is one of the most common mistakes, often leading to significant losses.
- Excessive leverage: Overusing leverage increases the risk of liquidation.
- Emotional trading: Decisions made under emotional influence are often irrational and can lead to irreversible consequences.
What should be done now?
If your principal is less than 100,000 and you want to seize the opportunity of this bull market, it is recommended:
1. Start practicing rolling techniques with small amounts (e.g., 5,000 to 10,000).
2. Strictly follow the above three major rules to avoid emotional trading.
3. Missing opportunities is not regrettable; making mistakes is fatal.
Remember, the key to success lies in patience and discipline. Don't be greedy, and don't be misled by short-term fluctuations. Follow the rules, accumulate gradually, and eventually, you will see results.
