I once used this method to turn 10,000 USD into 1 million USD in one month, achieving a hundredfold return, and now I’m sharing this method!
Core logic of roll-over operations
Definition and principle
Roll-over (Pyramid Trading) is a trading strategy that amplifies returns through the compound effect, its core logic is:
Floating profit adding positions: After floating profits are generated from the initial position, use part or all of the profits to add positions, rather than withdrawing profits.
Compound effect: By continuously reinvesting profits into the market, achieve 'interest on interest', rapidly expanding returns in trending markets.
Applicable scenarios
Trending market: Applicable to markets that are rising or falling in one direction, such as the bull market cycle after Bitcoin halving.
High volatility assets: Mainstream coins like Ethereum are more suitable for roll-over operations due to high liquidity and volatility.
Leverage trading: In futures or perpetual contracts, leverage can amplify the roll-over effect (but strict risk control is necessary).
Specific steps and execution points for roll-over operations
Establishing initial position
Position management: For the first opening of a position, it is recommended not to exceed 20%-30% of total capital, for example, opening 20,000-30,000 USD with a 100,000 USD capital.
Entry timing: Choose entry after breaking through key support/resistance levels, for example, when Bitcoin breaks 100,000 and confirms a pullback.
Floating profit judgment
Profit threshold: When floating profits reach 10%-20% of the initial position (for example, a 30,000 USD position profit of 3,000-6,000 USD), consider rolling over.
Technical validation: Confirm trend continuation by combining indicators like MACD and RSI, avoiding adding positions in false breakouts.
Timing and ratio for adding positions
Method for adding positions:
Proportional adding positions: The amount added each time is the same as the initial position (for example, initial 30,000, add 30,000).
Pyramid adding positions: Each additional position is a decreasing amount (for example, initial 30,000, second addition 20,000, third addition 10,000).
Interval for adding positions: It is recommended to add positions when the price retraces to the 5-day or 10-day moving average, avoiding chasing highs.
Stop-loss and take-profit strategy
Trailing stop-loss:
Initial stop-loss: Set 2%-3% below the entry point (for example, entering at 100,000 USD, set stop-loss at 97,000-98,000 USD).
Trailing stop-loss: After each additional position, move the stop-loss to just below the most recent addition (for example, set stop-loss at 102,000 USD after adding position).
Take profit target:
Technical targets: Set targets based on Fibonacci extension levels (for example, Bitcoin 1.618x extension level).
Partial take profit: Reduce positions in batches at key resistance levels (for example, take profit on 20% of the position at 110,000 USD, 30% at 120,000 USD).
Dynamic position adjustment
Changes in market volatility: If volatility decreases (e.g., BTC's ATR indicator drops), reduce the frequency of adding positions or lower leverage.
Fundamental change: Immediately close all positions when events like regulatory policies or hacker attacks occur.
Differences in applications of roll-over strategies in Bitcoin and Ethereum
Bitcoin (BTC) roll-over strategy
Trend tracking: BTC is more suitable for long-term trend tracking due to institutional fund inflows and halving cycles.
Rhythm of adding positions: Add positions after breaking through key integer levels (such as 100,000, 110,000 USD).
Stop-loss settings: Use weekly support levels (such as 95,000 USD) as the final stop-loss.
Ethereum (ETH) roll-over strategy
Ecosystem driven: ETH is more affected by Pectra upgrades and DeFi ecosystem activity.
Timing for adding positions: Add positions after positive news in the ecosystem (such as the launch of Layer 2 solutions).
Take profit strategy: Take profit when the NFT market heat or DeFi total locked value (TVL) growth slows down.
Risk management for roll-over operations
Risk management framework
Leverage control: Futures trading leverage should not exceed 50 times, perpetual contracts should not exceed 80 times.
Position limit: The total position after rolling over a single currency should not exceed 50% of total capital.
Drawdown control: Set a maximum drawdown threshold (e.g., 15% of total capital), and force position reduction when reached.
Mindset management
Avoid FOMO: Do not blindly add positions out of fear of missing out on the market, strictly follow the plan.
Accept drawdown: The roll-over strategy may give back some profits in volatile markets, patience is required.
Regular review: Record trading data weekly, analyze the reasonableness of adding positions and stop-loss/take-profit.
Optimization directions for roll-over strategies
Algorithm assistance
Use trading bots to automatically execute roll-over strategies to avoid interference from human emotions.
Set conditional orders (such as automatically adding positions after the price breaks a certain moving average).
Hedging strategy
When rolling over BTC, use ETH or stablecoins for partial hedging to reduce portfolio volatility.
Use options strategies (such as selling put options) to enhance returns.
Cross-market arbitrage
Simultaneously roll over in spot and futures markets to take advantage of basis convergence for additional profits.
Summary
The roll-over strategy is a typical representation of high risk and high return in the crypto space, and its successful execution requires meeting the following conditions:
Clear trend: Only used in one-sided markets, easy to incur losses in volatile markets.
Strict risk control: Position size, leverage, and stop-loss must be managed quantitatively.
Stable mindset: Avoid deviating from the plan due to short-term fluctuations.
For ordinary investors, it is recommended to first use a demo account or very small positions (such as 5% of total capital) to test strategies, and gradually accumulate experience before scaling up. If you still don’t know how to operate after reading this, comment 1 below, no strings attached!
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