Rolling over a position sounds scary, but in fact, it is much better to say it as adding to a position with floating profit. Adding to a position with floating profit is just a common technique in futures trading.
You don’t have to maintain 5-10 times leverage, you only need 2-3 times. What you want is to increase your position with floating profit to maintain 2-3 times of your total position. It is still relatively safe to play Bitcoin. There are only three situations where rolling is suitable:
1. Long-term sideways volatility after a new low
2. Buy at the bottom after a sharp rise in the bull market
3. Break through the major weekly resistance/support level
Only in these three situations do the chances of winning seem greater; all other opportunities should be abandoned.
(Hint: Only play futures with money you don’t mind losing.)
Fat house point of view:
Here is a definition of rolling position: in a trending market, after making a large profit by using leverage, the overall leverage is passively reduced. In order to achieve compound profit effect, the trend position is increased at the right time. This process of increasing positions is called rolling position.
Fatty believes that there are two main types of "right time" in the definition:
1. Add positions during a convergence breakthrough in the trend, and quickly reduce the added positions after the breakthrough when the main rising wave is reached.
2. Increase trend positions in the callback market during the trend, such as buying in batches when the moving average pulls back. #Master's Records#BTC #ETH
