In the cryptocurrency circle, rolling positions are indeed the core strategy for small funds to turn around, but 99% of people face liquidation due to wrong operations. The following is a deep breakdown based on practical experience:

1. Why is rolling positions the only way for small funds to turn around?

  1. Mathematical Logic Crushes Short-term Trading
    Short-term compound interest seems enticing, but it is actually as difficult as climbing to the sky: with a principal of 50,000, daily 10% returns require 250 days of no errors to reach 340,000, while rolling positions only require seizing 3 opportunities of 3 times leverage (50,000 → 1,350,000)9. True wealth accumulation comes fromthe geometric growth of major trends, not high-frequency trading149.
    Case: During the 2020 Bitcoin bull market, the rolling position strategy can increase a principal of 50,000 to 200,000 within a 50% increase16.

  2. Market Law Verification
    In the cryptocurrency market, 90% of trends are fluctuations, and only 10% are unilateral trends. The core of rolling positions isto abandon ineffective fluctuations, focus on capturing extreme market conditions(e.g., breaking through weekly resistance, sideways reversal after a sharp drop), amplifying profits through floating profits369.

2. Four Steps of Rolling Position Practical Combat (Path from 50,000 to 1,000,000)

  1. Opportunity Selection: Only engage in high-win rate trends

    • Long-term sideways breakthrough (direction selection after new low volatility)

    • Bull Market Pullback Buying (e.g., rebound after the significant drop of Bitcoin in 2021)

    • Weekly Level Breakthrough(EMA21 moving average breakthrough, increased trading volume)369
      Key: Better to miss than to make a mistake, only need 2-3 correct operations in a year19.

  2. Position Management: Control risk, amplify profits

    • Initial Position: 5%-10% of total capital (5,000 for the first position of a principal of 50,000)

    • Leverage Control: 1-3 times leverage (actual risk exposure is only 1-3 times), isolated position mode prevents total liquidation 49

    • Stop Loss Iron Rule: Single loss ≤ 2% of total capital (if the principal of 50,000 loses 1,000, then stop loss) 49

    • Adding Position Strategy: Increase position by 10% for every 10% rise, step-up amplification (e.g., 50,000 → 60,000 → 72,000) 9

  3. Profit Lock: Counter-intuitive operation

    • Withdraw part of the profit after 20% gain (e.g., if earning 200,000, withdraw 50,000), ensure principal safety 11

    • Trailing Stop: After floating profit exceeds 20%, move stop loss up to cost line, eliminate profit reversal 11

  4. Psychological Development: Discipline > Talent

    • Refuse Frequent Trading: 80% of the time observe, 20% of the time strike heavily 26

    • Accept Missing Opportunities: Missing out on market trends is not scary, what's scary is forced operations 9

3. Three Major Death Traps of Rolling Positions (Must Avoid!)

  1. All-in Leverage: 99% of liquidations stem from 'feeling secure', 10 times leverage on full position = suicide 1011

  2. Counter-trend Adding Position: Adding position during loss = accelerating to zero, only add position during profit 11

  3. Greedy for Compound Interest: The goal of rolling positions should be phased profit-taking (e.g., 50,000 → 200,000 → withdraw 50,000), rather than rolling indefinitely 1011

4. Capital Advancement Path (5-Year Plan)

  • Stage 1: 50,000 → 200,000 (1 successful attempt)

  • Stage 2: 200,000 → 1,000,000 (2 successful attempts)

  • Stage 3: 1,000,000 → 5,000,000 (3 successful attempts)9
    Core Formula: Final income = Principal × Leverage multiplier^successful attempts (e.g., 50,000 × 3³ = 1,350,000)9

5. Ultimate Advice

  • Simulated Trading First: Validate the strategy for 6 months, then invest ≤2% of capital in real trading 9

  • Environment > Technology: Heavily invest at macro turning points such as the end of the Federal Reserve's interest rate hikes, beginning of a bull market 911

  • Tool Assistance: Combine MACD + EMA200 for dual confirmation of trends, avoid false breakouts 11

Rolling positions are not gambling, but rather the art of risk control. Remember: Patience + Discipline = The only solution for a comeback 169.

2,600 days of financial journey, exclusive secrets of cryptocurrency pioneers: Insight into the market, move steadily forward, pay attention to the captain teaching you how to steadily increase value, risks and opportunities coexist in investment, blind operations are a big taboo in the cryptocurrency circle!