The cryptocurrency market in 2018 was like a crazy casino, some made 60 times their investment in a week with one operation, while others fell from the clouds to the mud overnight. During that year's BCH market, I witnessed a newcomer who didn't even understand K-lines turn 50,000 in capital into 3 million; I also saw seasoned traders make a fortune in the EOS bull market, only to lose everything due to greed after rolling positions one more time. Is rolling positions a wealth-building tool or a death knell?
I. The myth of 60 times in a week: How that clueless newcomer made a comeback with BCH.
Old Chen is a restaurant owner who entered the cryptocurrency market in the second half of 2018 with 50,000 of his private funds, not even understanding what 'leverage' meant, only remembering the two words 'rolling positions' that I casually mentioned.
In November that year, BCH suddenly started from $400, rising sharply as if an accelerator had been pressed. Old Chen opened a 10x long position unknowingly at $420, using 50,000 to buy 1.2 BCH. When it rose to $441, the floating profit in his account was enough to buy 2.4 BCH, and he obediently closed the position, then immediately used all funds to open a new long position.
He rolled for three days like this: $441 → $463 → $486 → $510... Every time it rose by 5%, he closed the position and opened a new one, putting both profits and principal into the new position. By the fourth day when BCH reached $580, his account had over 30 BCH, equivalent to nearly 2 million RMB.
"The numbers on my phone were jumping, and my hands were shaking," Old Chen later told me, he had no idea what support and resistance levels were, just remembered 'roll when it goes up'. It wasn't until the platform reminded him of the impending delivery that he hurriedly closed all positions, and it turned out to be exactly 3.02 million.
This ordinary person, who couldn't even enlarge a K-line chart, leveraged the most basic rolling position logic to transition from a restaurant owner to a 'millionaire' in just one week. The core of all this lies in the magic of compound interest in rolling positions.
II. How exactly to play rolling positions? Understanding the essence of operations from the EOS case.
The core logic of rolling positions is actually quite simple: turn every profit into new principal, amplifying returns like rolling a snowball. But behind this lies an intricate operational rhythm, which we will analyze using the EOS market from 2018.
Assuming the current price of EOS is $2, you predict a major market is coming, using 100 EOS to open a 20x long position.
When EOS rose to $2.1 (an increase of 5%), the floating profit in the account was equivalent to 100 EOS, and after closing the position, the principal became 200 EOS.
Immediately open a 20x long position with 200 EOS at $2.1, and when it rises to $2.205 (an increase of 5%), the floating profit doubles, and the principal becomes 400 EOS.
Continue rolling, with 800 EOS at $2.315, then 1600 EOS at $2.43...
This is the compound interest effect of rolling positions: ordinary futures can only earn 3 times at $2.43, while rolling positions can earn 15 times. But please note, the premise of all this is that the market must keep rising in the direction you predict, and there can be no significant pullbacks along the way.
III. Deadly risk: One mistake can wipe out 10 profitable trades.
In the EOS market in April 2018, Old Li started rolling positions earlier than Old Chen. He rolled from $2 all the way to $15, multiplying the amount of EOS in his account nearly a thousand times, enough to buy two school district apartments in Shenzhen based on the price at that time.
"Everyone said EOS could reach 1,000 RMB, but I thought $15 was just the beginning." Old Li opened all his positions again at $15, even adding leverage up to 50 times. But just as he was calculating to change his car, EOS suddenly plummeted from $15 to $10 in just 40 minutes.
By the time he realized he wanted to close his position, the system had already prompted 'liquidation'. The profits he rolled out in the previous three months, along with the principal, vanished without a trace. In his words: 'It was like a dream; waking up leaves you empty-handed, the only difference is that waking up doesn't require paying back the platform's liquidation fees.'
The risks of rolling positions are never linear: ordinary futures can recover after losing 50%, but with rolling positions, a single 10% pullback can wipe out all previous 10 profits. Even more frightening is that consecutive profits can create an illusion of 'always being right', making it hard to let go when the market reverses.
IV. The underlying logic and practical advice for rolling positions.
1. When is it suitable to roll positions?
It must be an extreme market: either a main upward trend in a bull market (like BCH's solo flight in 2018) or a major positive news event for the cryptocurrency (like the anticipation of EOS's mainnet launch that year).
Technical analysis must be combined: weekly and monthly charts must show a bullish arrangement, and trading volume must continue to expand, avoiding blind operations in volatile markets.
2. The correct steps for rolling positions (taking long positions as an example).
Initial position should be controlled at 20%-30% of the principal, with leverage not exceeding 20 times.
Every time it rises 5%-10% (adjust based on the volatility of the cryptocurrency), immediately close the position and open a new one with all funds (principal + profit);
Set a 'profit-taking line': After rolling 2-3 times, forcibly withdraw 50% of the profits to avoid greed.
Once the callback exceeds 3%, stop loss immediately, no matter how much has been earned before.
3. Risk level ranking (must be remembered).
Rolling positions > cryptocurrency futures > cryptocurrency spot = commodity futures > stocks.
If you can't bear the most basic risks, rolling positions is like 'suicide trading' for you.
V. A final word for those who want to try rolling positions.
In that wave of market in 2018, the people who became rich through rolling positions could be counted on two hands, while the list of those who blew up could fill three A4 pages. Old Chen's success was 90% luck—he was 'forced to stop loss' by the platform's liquidation mechanism before blowing up; while more people, like Old Li, died from the obsession of 'I can keep holding'.
If you really want to try, remember: rolling positions is a 'magnifier' of the market, not a 'predictor'. It can let you earn more at the right time, but it cannot save you from wrong judgments. True experts never use rolling positions to pursue quick profits, but use it to amplify returns in certain markets, taking profits when the time is right.
The cryptocurrency market never lacks opportunities; what it lacks is the patience to preserve capital. Instead of focusing on the myth of quick profits from rolling positions, it's better to learn to steadily profit in the spot market—after all, surviving to wait for the next market is more important than winning a single gamble.
If you feel helpless and confused in trading, and want to learn more about the cryptocurrency world and get first-hand cutting-edge information, click on my profile and follow me, so you won't get lost! Seeing the market clearly gives you the confidence to operate. Stability in making profits is far more practical than fantasizing about getting rich quickly!
