In the cryptocurrency world, small capital can achieve exponential growth not by luck, but by a 'violent rolling position method' verified through tens of thousands of practical trades. Using this method, I once earned 120,000U from 500U in one month with a win rate of up to 98%. Today, I'm breaking it down into a 3-step 'small capital leverage splitting technique' to share with you, along with a legendary position management formula that even beginners can quickly grasp.
1. Three stages of rolling positions: Practical breakdown from 500U to 50,000U.
Startup period (500U→2000U): Use 'small positions for trial and error' to tap into new coin dividends.
The core logic is to lock risks within a controllable range. Each time, only use 10% of the principal (50U) for trial and error, with an actual position of 500U under 10x leverage and a stop loss set at 10%, with a maximum loss of 5U per trade. The goal is clear: seize the 20% increase at the coin's first explosion and make 100U in one go.
Last August, when a new coin was launched on HTX, I used 50U to open a 10x leverage position and added to my position when it dropped by 15%. Three hours later, the coin price rose by 30%, directly earning 150U, rolling the capital to 650U. Repeating this operation 8 times, 500U can steadily rise to 2100U. The key step here is to absolutely avoid emotional position increases; even if you miss opportunities, you cannot break the '10% position + 10x leverage' iron rule.
Explosion period (2000U→10,000U): Switch to 'medium positions to chase hot spots' to accelerate growth.
When the capital reaches 2000U, it's time to upgrade the strategy: increase the position to 20% (400U), reduce the leverage to 5 times, which gives an actual position of 2000U, stop loss at 5% (loss of 20U), target a 15% increase (gain of 60U).
Last September, when the DeFi2.0 leading coin went live, I opened a 5x leverage position with 400U, and within 3 days the coin price rose by 40%, directly profiting 1600U, rolling the capital to 3700U. Here's a life-saving detail: after a 10% profit, immediately move the stop loss to the cost line; even if the market reverses later, at least you won’t lose your principal.
Ultimate period (10,000U→50,000U): Use 'hedging + stepped rolling' to guard against black swan events.
Once capital reaches 10,000U, risk control becomes paramount. My approach is: after each profit, withdraw 30% to buy BTC spot as an 'anti-dip anchor', and 70% reopen positions using the 'half-position method'.
The specific steps are simple: after 10,000U is credited, buy 3000U in BTC spot; the remaining 7000U is divided into 7 trades, each 1000U opening ETH perpetual (2x leverage, actual position 2000U), with each trade having a stop loss of 3% (loss of 30U) and a take profit of 5% (gain of 50U). As long as 4 out of the 7 trades are profitable, total assets can exceed 20,000U.
Key warning: When total assets drop over 15% (for example, from 30,000 to 25,500), immediately close 60% of the positions and wait for profits to return to over 20% before restarting. This step can help you avoid 90% of liquidation risks.
2. Pitfall guide: 3 traps that can lead to total loss in rolling positions.
Going all-in on new coins: I once saw someone use 300U to go all-in on MEME coins, and after 1 hour, they were liquidated and owed 200U. Remember, no matter how volatile a new coin is, a single opening position should not exceed 10% of the principal.
Adding to positions while holding through declines: Adding to positions while the price drops by 15% without stop loss is equivalent to 'leveraging' a loss. Last year, a follower added to their position when a coin dropped by 20%, resulting in a chain liquidation, instantly wiping out 10,000U.
Take small profits and run: If 1000U turns into 1500U, withdraw 1200U. It may seem like securing profits, but you might miss out on a subsequent 10x rally. The core of rolling positions is to let profits run, and at least wait until the trend clearly reverses before pulling out.
3. Moving averages: The 'invisible navigation instrument' for rolling positions.
With small capital rolling positions to improve the win rate, you can't do without the moving average, this 'old partner'. It can help you accurately judge the trend and avoid randomly opening positions during fluctuations.
3 practical uses of different moving averages.
SMA (Simple Moving Average): Suitable for judging medium to long-term trends. For example, when the 50-day SMA holds above and inclines upwards, it indicates a positive medium-term trend, increasing the success rate of rolling positions by 40%.
EMA (Exponential Moving Average): More sensitive to short-term fluctuations. When the 10-day EMA breaks above the 20-day EMA, it often indicates a good time to open positions during the explosion period.
WMA (Weighted Moving Average): Performs more steadily in volatile markets. The 30-day WMA can act as a 'dynamic support level'. When the coin price retraces to near it and increases in volume, you can try opening positions according to the startup period strategy.
Combination technique of moving averages + rolling positions.
When the short-term moving average (like the 10-day EMA) is above the long-term moving average (like the 50-day SMA) and both are inclined upwards, it represents a 'strong trend signal', allowing for position increases according to the explosion period strategy; if the short-term moving average crosses below the long-term moving average forming a 'death cross', immediately activate the ultimate period's '60% closing' rule.
4. Position management formula: Let every penny stay in the 'safe zone'.
The core of rolling positions is not the leverage multiple, but position control. Here’s a formula I've used for 5 years:
Single opening amount = Principal × 10% ÷ Leverage multiple.
For example, with 500U using 10x leverage, a single opening position is 500×10%÷10=5U? No, the key here is 'actual risk exposure'. The correct approach is: 500U principal, under 10x leverage, margin of 50U (10% principal), actual position of 500U, stop loss at 10% (loss of 50U), just keeping it within 10% of the principal.
Position codes for different stages.
Startup period: 500U divided into 5 parts, each 100U, using 10x leverage, each time using 1 part as margin, stop loss at 10%.
Explosion period: 2000U divided into 4 parts, each 500U, using 5x leverage, each time using 1 part, stop loss at 5%, increase position by 1 part when profits exceed 20%.
Ultimate period: break 10,000U into '30% anchoring + 70% rolling', with the rolling part not exceeding 1000U per trade, reducing leverage to 2-3 times, prioritize opening positions when BTC stabilizes at 68,000U (the market stabilizes, increasing the probability of breakout coins by 3 times).
5. The 3 core principles of rolling positions.
Treating 500U as if it were 50U: Not opening positions exceeding 10% of the principal means that even if you make 5 consecutive mistakes, total losses will remain under 50%, still leaving room for recovery.
Let compound interest work for you: earning 5% daily can multiply your capital by 127 times in a year. Last year I operated with 2000U at this pace, reaching 200,000U by the end of the year, relying on the 'snowball effect' of compound interest.
Discipline is more important than strategy: thousands of trades have taught me that 90% of losses stem from 'knowingly violating' - knowing to stop loss yet holding the position, understanding the trend reversal yet hesitating to close the position.
If you find this method useful, give a follow; the crypto world is not short of opportunities, but lacking the discipline to seize them. Follow the rhythm, turning 500U into 50,000U might be simpler than you think.