Many believe that rollover trading strategies carry high risks; however, this is not the case. Its risks are far lower than the logic of opening ordinary contracts. However, there is a premise: if you are currently in a loss state, it is advisable not to consider it; if using 50,000 in capital, this amount should ideally be your profits.

The specific operational logic can be understood this way: for instance, when Bitcoin is at 10,000 USD, open a position using 10x leverage, in a sub-position mode, only using 10% of the position—meaning 5,000 USD as margin, which is effectively 1x leverage, while setting a 2-point stop loss. Even if the stop loss is triggered, you would only lose 2% (1,000 USD); even in the extreme case of liquidation, you would only lose that 5,000 USD and would not lose all your capital.

If the judgment is correct and Bitcoin rises to 11,000 USD, continue to increase positions by 10% of the total funds, setting a 2% stop loss. Even if this stop loss is triggered, the previous profits can still leave 8%. Following this logic, if Bitcoin rises to 15,000 USD and the position increase goes smoothly, a 50% market movement could bring about 200,000 in profits. Capturing such market movements twice could bring the funds close to 1 million.

Here, I want to clarify a misconception: rapidly growing funds do not rely on compound interest but rather on several key market movements that multiply growth, such as two times 10x, three times 5x, four times 3x. The so-called '10%-20% daily or monthly compound returns' are actually unrealistic.

The core of this approach lies in position management, which is the 'internal skill' of trading. Mastering reasonable position control ensures that one cannot lose all of their capital. Of course, this is just an example; specific details need to be pondered by oneself.

The concept of rollover trading itself is not risky; in fact, it is one of the correct approaches in futures trading. The real risk lies in leverage choices. 10x leverage can roll over, and so can 1x. I usually use two to three times leverage; capturing two market movements can still yield several dozen times profits. Even using 0.x leverage does not affect the rollover logic; the choice of leverage is personal and not an inherent issue of rollover trading.

I have always emphasized that investment in the cryptocurrency market should control ratios: only invest one-fifth of your funds, with the money used for contracts being at most one-tenth of the spot funds—meaning that contract funds only account for 2% of total funds. Also, choose two to three times leverage and only trade Bitcoin, which can reduce risks to a very low level. Imagine, if you lost 20,000 in a 1 million fund, would it be painful?

Some people question the high risk of rollover trading and claim that profit relies entirely on luck. I am not trying to convince anyone; I just hope to communicate with those who share this trading philosophy. Currently, there is a lack of filtering mechanisms, making it unavoidable for different voices to interfere, so I hope for your understanding.

The importance of capital management

Trading is not inherently full of risks; risks can be mitigated through capital management. For example, my contract account has 200,000 USD, and the funds in the spot account flexibly adjust between 300,000 and over 1 million USD. Invest more when opportunities are abundant, and invest less when opportunities are scarce.

When the luck is good, one can earn over 10 million RMB in a year, which is enough to meet demands; in extreme cases of bad luck, even if the contract account is liquidated, the profits from spot trading can compensate for the losses. After compensating, one can reinvest—after all, one cannot possibly earn nothing from spot trading in a year.

My principle is 'I can afford not to earn, but I cannot afford to lose'. Thus, I haven't faced liquidation for a long time. Moreover, after making a profit from contracts, I often set aside one-quarter to one-fifth separately; even if I face liquidation, I can retain some profits.

The suggestion for ordinary people is to use one-tenth of their spot position to trade contracts. For example, if you have 300,000 in spot, use 30,000 to trade contracts. If you have faced liquidation more than ten times without figuring out the trick, it might mean this field isn't suitable for you.

How can small funds grow large?

Many people have a misconception about trading: they think small funds must trade short to grow large. This is actually an attempt to exchange time for space, trying to get rich overnight, which is completely erroneous. Small funds should ideally focus on medium to long-term trading to grow larger.

For example: Is a piece of paper thin enough? Folding it 27 times can reach a thickness of 13 kilometers; folding it 37 times exceeds the diameter of the Earth; folding it 105 times could even exceed the universe's range. Capital growth is similar; if 30,000 in capital can triple in one wave and then triple again, it can quickly accumulate to four or five hundred thousand. Always thinking about earning 10% today and 20% tomorrow makes it easier to lose large amounts from small mistakes.

Remember: the smaller the capital, the more one should focus on long-term trading, relying on the compounding effect to grow larger rather than being fixated on small short-term profits.

How can contracts be 'risk-free'?

Some people often say that trading contracts is risky, even giving examples like 'someone lost everything and jumped off a building due to 20 million in losses.' But the risk has never been in the contracts themselves; it is in people. Contracts can be made 'risk-free', and maintaining a calm mindset is crucial—it all depends on the approach.

1. Use other people's money to earn your own, letting clients bear the risks while you face zero risk. For example, traders like Buffett, Soros, and various funds essentially operate under this model (although 90% of private funds actually cannot outperform the market). The crypto space also has managed trading and service selling, but the prerequisite is to first build a reputation, which is quite challenging.

2. Use profits to trade contracts. For example, initially invest 200,000 in spot trading, earn 50,000 in six months, and then use that 50,000 to trade contracts. Even if you lose it all, it's just the profit lost, not affecting the principal—where's the risk?

Ultimately, many people cannot control their greed and blame the high risk of contracts. Contracts themselves do not 'kill'; it is always one's own desires that cause loss of control.