Rolling over sounds scary, but in other words, it's just adding to positions with floating profits. This way of saying it is much better; adding to positions with floating profits is just a common method in futures trading.
You don't need to maintain 5-10 times leverage; two to three times is sufficient. The goal is to keep adding to positions with floating profits while maintaining a total position of two to three times. Trading Bitcoin is relatively safe, and rolling over is suitable only in three situations:
1. The choice direction after a new low in long-term sideways volatility
2. A significant decline following a major rally in a bull market
3. Breaking through major resistance/support levels on a weekly chart
Only in these three situations does the probability of success increase; all other opportunities should be abandoned.
(Tip: Only use money that you don't mind losing to play futures.)
Fatty's viewpoint:
Defining rolling positions: In a trending market, after making significant profits using leverage, due to the passive decline of overall leverage, to achieve compound profit effects, increase trend positions at the right time. This process of increasing positions is called rolling positions.
In the definition of 'the right time', Fatty believes there are mainly two types:
1. Increase positions during a converging breakout in a trend, quickly reduce the added positions after the breakout to capture the main upward wave.
2. Increase trend positions during a pullback in a trend, such as buying in batches during a pullback at moving averages.
In the end, I am Xiao O, specializing in analysis and teaching, focusing on stability, reliability, and high win rates! Brothers who want to join in on the profits, click on my profile and get on board quickly!!!
