First, we need to understand the situations suitable for rolling positions. Currently, there are only three situations that are suitable for rolling positions:
1► Choosing direction after a long-term sideways volatility new low
2► Buying the dip after a major rise in a bull market
3► Breaking through significant weekly resistance/support levels
In general, only the above three situations have a relatively high probability of success, while all other opportunities should be abandoned.
Common viewpoint:
Defining rolling positions: In a trending market, after significantly profiting using leverage, due to the passive decline of overall leverage, increasing trend positions at the right time to achieve compound profit effect is called rolling positions.
The following are the manipulation methods for rolling positions:
● Adding to positions on floating profit: After gaining floating profits, consider adding to positions. However, before adding to positions, ensure that the holding cost has been reduced to minimize the risk of losses. This does not mean blindly adding to positions after making a profit, but rather doing so at the appropriate moment.
● Base position + T trading rolling operation: Divide funds into multiple parts, keeping a portion of the base position unchanged, while the other part of the position is used for high selling and low buying operations. The specific ratio can be chosen based on individual risk preferences and capital scale. For example, one can choose half-position rolling T trading, 30% base position rolling T trading, or 70% base position rolling T trading, etc. This operation can reduce holding costs and increase profits.
The 'appropriate moment' in the definition, in my opinion, mainly has two types:
1. Adding to positions during a convergence breakout in a trend, quickly reducing the added positions after the breakout to capture the main upward wave.
2. Increasing trend-type positions during a pullback in a trend, such as buying in batches during a moving average pullback.
There are various specific methods for rolling positions, the most common being to achieve this through position adjustment. Traders can gradually reduce or increase the number of holdings according to market changes to achieve profit objectives. Traders can also amplify returns through trading tools such as leverage, but this will also increase risk.