Today I learned about the rolling position strategy and calculated the return rate, my heart was racing nervously. I still don't think I'm suitable for rolling positions.

The key to this method lies in predicting the market trend, and it is only suitable for one-sided markets. The downturn in the crypto market is swift and fierce; downward trends are more applicable than upward trends. Rolling positions place high demands on individuals' timing abilities, with many opportunities for rolling positions in the crypto world that are often serendipitous. The rolling position strategy is only suitable for use in extreme market conditions, especially during extreme downturns.

During the epic crash in the cryptocurrency circle on May 19, 2021, the internet celebrity Liangxi became rich overnight by boldly shorting. Liangxi's short position started from 1,000 yuan and rolled over to earn 30 million yuan.

On May 11, 2022, the Luna token, which was jokingly referred to as the 'Moutai of the crypto world', collapsed. In just one month, the price of Luna dropped from $119 to less than $0.0002, a staggering 99.99% drop, leaving countless people with nothing overnight. This was also the best time to short Luna through rolling positions.

On November 9, 2022, a major crash occurred in the crypto world. The global leading cryptocurrency exchange FTX and its hedge fund Alameda, founded by SBF, collapsed. Subsequently, the price of FTX's platform token FTT plummeted over 90%, leading to the collapse of the entire virtual currency market. From midnight on November 9, FTT price fell sharply; within less than 3 hours, it dropped from a high of $17.71 to $4.6, a decline of 74%. This was the best time to short FTT through rolling positions.

Moreover, the last surge phase of Bitcoin in a bull market is the best time for rolling positions to go long. Conversely, the pullback phase at the peak of a bull market is the best time for rolling positions to short.

Many friends still do not know what rolling positions are, let’s repeat it.

Rolling positions are defined as 'small funds, high leverage, all-in on the spot, stop loss on liquidation, and adding positions on floating profits'. Generally, a leverage of 10 times is chosen, with liquidation at a 10% drop from the peak.

The advantage is that in a one-sided market, the myth of achieving a hundred times profit can be realized the fastest. After using rolling positions, there is no longer fear of prices, because there is only one peak in a bull market, and no matter how much it pulls back, it will rise again.

The downside is that it's extremely risky, only effective in a one-sided market, and you must use small funds that won't hurt too much when you lose. It mainly depends on opportunities, and only a few insightful friends can achieve great success.

The challenge lies in the test of courage and mentality when opportunities arise.

Why has the rolling position strategy only recently been introduced? It is because the rolling position strategy is effective in a bull market with one-sided trends. Liangxi became rich overnight on May 19 in the crypto world, only to realize later that it was the one-sided market that made him, while the non-one-sided market destroyed him. Times create heroes; the same method can yield drastically different results in different markets. When the wind comes, even pigs standing at the windward will fly, but once the wind stops, all the flying pigs will fall.

Several FAQs about the rolling position strategy.

How much capital is suitable for rolling positions?
Rolling positions are suitable for small funds, generally choosing money that you can accept as a loss, preferably not exceeding 10% of the principal.

What types of assets are suitable for rolling positions?
Generally suitable for large-cap assets that only go up and are not easily manipulated, such as Bitcoin, Ethereum, and US stock indices. Playing with altcoins carries higher risks.

What leverage is suitable for rolling positions?
Generally, a leverage of 10 times is chosen, with liquidation at a 10% drop from the peak; the greater the leverage, the higher the risk.

How to operate rolling positions in the crypto world?
Generally, choose the full position mode for contracts. If there are floating profits, you can use them as margin to add positions. If you choose the incremental position mode, you need to realize profits and close before continuing to open new positions.

When do you need to withdraw funds from rolling positions?
When there are significant profits, you can first withdraw your principal, and when profits increase further, you can withdraw part of the funds.

How powerful is rolling positions?
Generally speaking, during a smooth one-sided market, if the price rises by 50%, rolling positions can yield up to 100 times profit.

Remember, the rolling position strategy is the fastest way to get rich, but it is only effective in a one-sided market, especially for small retail investors. It is the fastest way to achieve a turnaround and class leap. If novice investors want to learn, they might as well take out 100 to experiment. Learning it can benefit you for life; not learning it will only cost a little.

The rolling position strategy can indeed lead to sudden wealth, but it is also very challenging and requires a strong ability to seize opportunities. Otherwise, if leverage is not well controlled, a single pullback can wipe out all positions.

A simpler explanation of rolling positions is: the bold get rich, and the timid go hungry. If a rolling position fails once, it’s over. No matter how much you earn before, just one failure means it's over; the key is that rolling positions can repeatedly crush your mentality. The difficulty lies in judging the big market.

Friendly advice: if you judge the market is good, use rolling positions sparingly; roll 2 to 3 times, and take profits. We often hear the phrase 'add positions on floating profits', which is often followed by 'wipe out all profits'. Adding positions on floating profits does not mean mindlessly rolling; it means rolling at critical moments.

The rolling position strategy, simply put, is 'small funds, high leverage, all-in on the spot, stop loss on liquidation, and adding positions on floating profits'. The rolling position strategy is extremely risky; most players will quickly lose all their money, but in a one-sided market, it is the fastest way to achieve a hundred times profit; it is the life-saving door among the extreme risks, which is known as times creating heroes.

But in practice, the rolling position strategy is not easy to operate, it requires courage, a good sense of timing, and personal understanding. Remember the key points: use small funds to roll over, take more trial and error opportunities, and use ten times leverage, withdraw the principal first after doubling, etc.

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