——Veteran in the crypto world teaches: low leverage + strict discipline, the 'snowball' method for small funds to make a comeback!
1. Rolling positions is not gambling with your life, it's 'using profits to roll the snowball'
90% of people misunderstand rolling positions as 'leveraging to gamble', but the core is 'increasing positions with floating profits and locking in risks'!
Underlying logic: use the profits earned from the principal to expand the position, while the principal remains safe. For example, with a principal of 5000 yuan, a 10x leverage gradual position mode, only take 10% of the funds (500 yuan) as margin, which is equivalent to 1x leverage (500 yuan × 10x = 5000 yuan position). Set a 2% stop loss, the maximum loss is 100 yuan, which has a minimal impact on the principal. After making a profit: earn 10% (500 yuan), total funds become 5500 yuan, then take 10% (550 yuan) to open a position, still at 1x leverage, stop loss at 2% (loss of 110 yuan). Even with a stop loss, total funds remain at 5390 yuan, 390 yuan more than the initial amount!
High leverage and using capital to increase positions in a 'pseudo-rollover' is essentially gambling, leading to liquidation sooner or later!
Two, the three life-and-death lines of rolling over: hit one, 5,000 can roll into a million.
1. Leverage must be 'ridiculously low': 3x is the limit; 1-2x is safer.
2022 retail case: starting with 5,000 capital using 20x leverage, first earning 3,000, then increasing positions but encountering a spike, resulting in liquidation!
My advice: initially use 1-2x leverage (33% volatility leads to liquidation), with a 2% stop-loss to provide ample margin for error; after five consecutive profitable trades, then raise it to 3x, and never touch above 5x!
2. Additional positions can only use 'floating profits': the principal is the trump card; never touch it.
The essence of rolling over: 'making money with the market's money.' For example, with 5,000 capital, the first profit is 1,000, bringing total capital to 6,000. At this point, use at most 1,000 of the floating profit to add positions; the principal of 5,000 must remain untouched!
Metaphor: A fisherman uses the fish he catches as bait; even if he doesn't catch new fish, he won't lose his boat.
3. Stop-loss must be 'ironclad and cold-blooded': 2% is the red line; cut immediately at the stop.
'Wait a bit, maybe it will rebound'—this phrase can ruin all rollover plans! Keep single trade stop-loss strictly within 2% of total capital (losing 100 on 5,000 capital); cut immediately at the stop, with no excuses!
2023 case: Bitcoin rose from 30,000 to 40,000, I rolled over with 1x leverage, had three stop-losses in between, losing 1,000-2,000 each time, but ultimately six profitable trades resulted in tripling my total capital!
Three, from 5,000 to a million: rolling over in three stages, each step has specific operations.
First stage: 5,000 → 50,000 (accumulate starting capital, practice feel).
Starting with spot trading: buy BTC, ETH at bear market lows (like when BTC dropped to 16,000 in 2023), wait for a 10%-20% rebound to sell, repeat 3-5 times to roll to 20,000.
Use small leverage for practice: when BTC breaks key resistance levels (like 20,000, 30,000), use 1x leverage to go long, add 10% for a 10% profit, with a 2% stop-loss. Focus on practicing 'stop-loss + adding to winning trades' muscle memory; complete at least 10 profitable trades before entering the next stage!
Second stage: 50,000 → 300,000 (capture trend markets, amplify profits).
Operations in a certain trend: for example, if BTC stabilizes above the 30-day moving average on the daily chart and volume expands more than three times, confirm the upward trend before rolling over (like the market after the BTC ETF is approved in January 2024).
Position addition ratio: for every 15% profit, use 30% of floating profit to add positions (e.g., from 50,000 to 57,500 profit of 15%, take out 2,250 to add positions), keeping total position within 20% of the principal.
Take profit strategy: every 50% increase, take 20% profit (e.g., from 50,000 to 100,000, first withdraw 20,000 cash), lock in profits to avoid 'profit giveback' mindset collapse.
Third stage: 300,000 → 1,000,000 (rely on long-term trends, earn 'era dividends').
Waiting for historic opportunities: for example, Bitcoin rises from the bear market bottom (15,000) to the mid bull market (60,000); this kind of 5-fold trend can amplify the rollover to more than 10 times the return (during the 2020-2021 bull market, some used 300,000 to roll to 5 million).
Dynamically adjust positions: in the early stages of the trend, position 10%-20%, increase to 30%-40% in the mid-stage, and reduce back to 10% in the later stage (for example, from Bitcoin rising from 30,000 to 60,000, start with a position of 30,000, increase to 60,000 at 40,000, and reduce back to 30,000 at 50,000).
Ultimate discipline: stop rolling over when capital reaches 800,000, withdraw 500,000 and store it in stablecoins, continue with the remaining 300,000— the endpoint of rolling over is 'locking in wealth', not 'rolling down forever'!
Four, the 'psychological moat' of rolling over: technique accounts for 30%, mindset for 70%.
1. Don't be greedy for 'perfect additions': missing out is better than adding incorrectly.
There will always be someone struggling with 'I added too early' or 'I added too little'. In fact, rolling over does not need to be precise; as long as you add positions within the 'profitable range', it is not wrong. Just like farming, as long as you plant in spring, it doesn't matter if you're a few days early or late; it's better than missing the planting season.
2. Accept 'imperfect stop-losses': A stop-loss is a cost, not a failure.
During the rolling process, having 3-4 stop-losses out of 10 trades is normal. In 2023, when I rolled over SOL, I had 2 stop-losses out of 5 trades, but the remaining 3 trades made a profit that increased total capital by 80%. Treat stop-losses as 'buying a ticket'—if you want to enter the amusement park, you have to buy a ticket. If you occasionally encounter a ride that isn't fun, you can't get a refund, but it doesn't affect your enjoyment of other rides.
Five, three practical cases of rolling over with 5,000: don't step into the pits others have fallen into.
Positive case: 5,000 → 780,000, relying on 'dumb methods.'
From 2022 to 2024, some people started with 5,000 in spot trading, bought ETH at 880 dollars during the bear market, sold at 1,200 dollars, making a 40% profit; then rolled over with 1x leverage, adding 10% for each 10% profit and 2% stop-loss, rolling to 780,000 in two years. The secret: only trade ETH, don't touch altcoins, and win with 'focus + discipline.'
Negative case: 100,000 → 500, dying from 'leverage addiction'.
In 2023, a retail trader used 100,000 with 5x leverage to roll over. After making 50,000 in the first two trades, he raised leverage to 10x, only to encounter a spike that caused a 40% drop, resulting in liquidation, only to return with 10x leverage, leading to a total loss a week later. He violated the key rule of rolling over: using principal to add positions and increasing leverage.
Key conclusion: The essence of rolling over is 'exchanging time for space.' Going from 5,000 to 1,000,000 requires at least 2-3 cycles of bull and bear markets (3-5 years). Those who fantasize about achieving this in one year will ultimately be educated by the market. The wealth code in the coin circle has never been 'fast,' but 'stable + long-term.'
Finally: insights for ordinary individuals from rolling over.
Can 5,000 roll into 1,000,000? Yes, but it needs to meet three prerequisites:
Use spare money for operations; losing it won't affect your life.
Spend at least 6 months honing your skills, completing 100 simulated trades.
Accept 'slow,' do not pursue overnight wealth.
Rolling over is not a myth but a tool for 'ordinary people to make a comeback through discipline.' Just like climbing stairs, each step is ordinary, but if you persist for 1,000 steps, you can reach heights others cannot.
If you only have 5,000 now, don't rush; start rolling from the first profit of 100— the snowball of wealth has to start from a small snowball.
Trading coins means repeating simple things over a long period, using one method until you master it. Trading can also be like other industries, where practice makes perfect, allowing you to make decisions without hesitation.
If you trade futures, if you don't even understand the 'rolling operation,' you might be acting rashly!
Seven years ago, like all newcomers, I watched Bitcoin rise from 789 to 19,783, and FOMO (fear of missing out) kicked in, going all in, only to see it crash 40% a week later... But now my portfolio has outperformed the market by 470%. The key is— the method of rolling over.
● Adding positions with floating profits: after gaining floating profits, consider adding to positions. However, before adding, ensure that holding costs have been reduced to minimize the risk of losses. This does not mean blindly adding positions after making profits, but rather doing so at the right time.
● Bottom position + T rolling operation: divide funds into multiple parts, keeping a portion of the bottom position untouched while using another part for high sell low buy operations.
The specific ratio can be chosen based on individual risk preferences and capital scale. For example, you can choose to do half-position rolling T, or 30% bottom position rolling T, or 70% bottom position rolling T, etc. This operation can reduce the holding cost and increase returns.
The 'appropriate time' defined, in my opinion, mainly has two types:
1. Increase positions during converging breakout trends; after the breakout, quickly reduce the added positions.
2. Increase trend positions during retracements, such as buying in batches during moving average pullbacks.
There are various specific methods for rolling over positions, the most common is to adjust the position size based on market changes. Traders can gradually reduce or increase their position size to achieve profitability. They can also use trading tools like leverage to amplify returns, but this also increases risk.
Three factors to consider in trading:
First, the factor is mindset.
Second, the truth of human nature.
Third, be diligent in learning and improve your cognition.
Essential for trading coins: naked K can also accurately capture breakthroughs. Understanding signals from shadows to engulfing patterns is key to profiting in large swings!
'I firmly believe that trading charts must remain simple and reasonable, making trading decisions based on the movement data of raw prices. This way, traders can avoid unnecessary indicator interference. I don't need any indicators or EAs to make trading decisions; I always focus on studying the trends of currency pairs, commodities, etc. I believe price action is one of the closest, most reliable, and profitable ways to trade.'
Price action is king!
In the price action breakout strategy, the two candlestick breakout trade setups I focus on are:
◎ Inside bar breakout
◎ Hesitant doji breakout
These two patterns are more like a catalyst, rather than direct price action signals.
We hope they appear at important price positions (identified through price action analysis), and then prepare to welcome the anticipated breakout.
An inside bar (Inside Bar) refers to a volatility range that is completely contained within the range of the previous K line, meaning both its highest and lowest prices are within the range of the last candlestick. A doji pattern (Doji) is easily recognizable by its nearly symmetrical structure formed by upper and lower shadows. The upper and lower shadows extend from both ends of the candlestick body, indicating that the market was in a state of indecision during its formation. In a suitable market background, we can trade this kind of price breakout following hesitation.
Professional tip: if you recklessly trade every inside bar and doji pattern, the market will harvest you mercilessly!
When looking for candlestick breakouts, you must ensure they are consistent with your chart analysis to increase the odds.
Below is a case of an inside bar formed in an upward trending environment:
We are waiting for the price to break through the high of the inside bar to trigger the breakout signal, confirming that the trend continues upward, and then enter the market.
As expected, the price broke through the high of the inside bar, and the trend continued to push forward.
Please note, this inside bar happens to fall on a support level in the trend— the more 'value' you can build for breakout trading, the higher the quality of the trade.
When trading breakout patterns, the 'market background' is extremely important!
If there is no clear market background, do not rashly attempt this kind of breakout trade... for example:
As shown, this is a market state with no background to rely on—sideways or 'neutral' market. Attempting to trade breakouts in this situation is meaningless, just blindly trading in a dense trading range.
All inside bars and hesitant doji patterns in the chart appear under very dangerous conditions. Engaging in breakout trades without momentum carries high risks!
Always remember, chart analysis always takes precedence over the signals themselves.
Trading hesitant breakouts like dojis follows the same principle. Find the point on the chart where you expect the market to reverse, then look for signals and trade the breakout in that opposite direction.
In the above chart, we see a doji pattern appearing at a very ideal technical level—at the resistance level of the range top.
If the market is about to reverse, we hope to seize the opportunity to break downward from this 'hesitation.'
Boom... the market broke through the low of the doji pattern and then fell for two consecutive weeks.
Engulfing candlestick pattern: 'overwhelming price movement.'
The third type of candlestick pattern is the 'engulfing pattern,' which suggests that the market is experiencing strong overwhelming volatility.
This pattern usually appears when the market experiences strong, sudden movements. The term 'engulfing' comes from: a sudden price fluctuation completely engulfs the fluctuation range of the previous candlestick.
What we need to do is try to capture the continuation trend after this engulfing action.
Above: a very strong engulfing K line, which even engulfed the range of several previous K lines.
This is due to a decisive and strong downward fluctuation in the market, hence we expect the subsequent market to continue to decline...
As expected, the market continued to decline, and it was a very strong downward move.
This is the core principle behind the engulfing signal; we hope to capture this kind of continuation fluctuation triggered by initial strength or weakness.
Below is an example of a bullish engulfing pattern appearing at a support level:
Here we have ample reason to expect the market to experience a wave of upward movement. The market is strongly rebounding from a range support position, thereby forming a bullish engulfing pattern.
Most traders might decisively go long at this point, but what happens next...
The market indeed continued this rebound, but wait—there's a plot twist!
During the process of a bullish trend, a bearish engulfing K line appeared. We now expect the market to continue to decline, as this is a clear bearish trend.
At this time, treating it as an 'early exit signal' from the original bullish trade is wise, as the price is likely to continue declining, disrupting your original bullish trading plan.
This situation does indeed happen.
Sometimes the market suddenly gives a very clear opposite direction candlestick signal. Such signals can serve as a prompt for early withdrawal. But you must confirm that this is a clear and valid signal; don't be scared off by some insignificant small K lines!
As I mentioned earlier, candlestick patterns are always an important component of an excellent price action strategy—but before considering them effective trading signals, other factors must also be taken into account.
Does this candlestick signal conform to your technical analysis background?
Is it in a reasonable position within the trend structure?
Remember, the buy/sell signals from candlesticks must be considered together with the overall technical analysis, not solely relied upon.
Summary
The key to trading breakout patterns is to ensure you have sufficient market background and that the breakout direction aligns with your technical analysis. Do not rashly conduct breakout trades in hard-to-interpret market conditions, as this can easily lead to significant losses!
Additionally, engulfing candlesticks are formed by strong and sudden fluctuations in the market. This rapid action 'engulfs' the fluctuation range of the previous candlestick, hence the name. The market often continues in the original direction after a bullish or bearish engulfing pattern.
But still remember, their effectiveness is best only when consistent with the context of price action analysis.
I printed the 10 rules I painstakingly learned in a life-and-death struggle in two copies: one on my desk and one by my bed, so I see them every day when I open my eyes.
1. Only bet on the main rising trend once a year; keep light positions or be flat the rest of the time to always leave bullets for unexpected situations.
2. If you can't earn money outside of cognition, first simulate trades to hone your skills, then practice mindset in real trading.
3. On the day of good news, do not dump your positions; the next day will likely open high, leaving the emotional premium to others.
4. Reduce positions before holidays, shut down during holidays, and the players act only when liquidity is exhausted.
5. For medium to long-term trading, keep 30% of liquid funds; buy on dips and sell on rises to compress costs to a psychologically comfortable level.
6. For short-term trades, only look at the top ten traded coins of the day. Don't touch niche coins no matter how grand the narrative; if you can't escape, it's original sin.
7. Gradual declines often lead to gradual rises; sharp drops often trigger sharp rebounds. Don't treat sharp drops as doomsday, and don't treat gradual rises as reversals.
8. If the direction is wrong, stop-loss immediately; preserving capital is essential for the next round's ticket.
9. For short-term trades, focus on 15-minute K lines, only act when KDJ + MACD + RSI resonate; spend the rest of the time drinking tea.
10. Don't aim to be proficient in everything; mastering one or two moves into muscle memory makes the market your ATM.
The coin circle is always 'seven losses, two breakeven, one profit.'
Shut out the noise, execute the system to obsession, and only then are you qualified to become part of that 10%.
I am Ah Xin, only doing real trades; the team still has places to join.
