1. The essence of rolling positions: wait for the wind to come, and then launch the big guns.
Many people ask me what rolling positions are—it’s not about trading every day, but rather spending 90% of the time waiting and 10% of the time making a big move. The core of rolling positions is 'compound interest blast', fully capitalizing on a major market movement rather than making tiny gains of 10% every day.
What I often say about 'rolling long, not rolling short' is because it’s easier to form a trend in a bull market, while rolling short in a bear market is like licking blood off a knife’s edge. The profits from rolling positions come from the continuity of trends, such as Bitcoin breaking through previous highs during a major upward wave, or a sudden breakout after a six-month sideways consolidation following a sharp decline.
II. Signals: When should you push the cannon?
The key to rolling positions lies in the timing of entry. I only look for three types of signals:
Crash → Consolidation → Volume Breakthrough
When the price drops to a point where no one is paying attention, and the trading volume shrinks to the extreme, suddenly a large bullish candlestick breaks through a key resistance level. This signal has the highest win rate because market sentiment has completely cooled down, and the main force has finished building positions.
Daily chart level breaks above key moving averages
For instance, Bitcoin stabilizes above MA30 on the weekly chart, and the trading volume continues to expand. The rise in both volume and price is a friend of the trend, while a price increase alone is a trap.
Market sentiment at freezing point
When the hot search is filled with curses, and retail investors shout 'going to zero', but on-chain data shows that whale addresses are still accumulating — this is a precursor to a reversal.
Note: 90% of volatile markets are not suitable for rolling positions! Random rolling will only wear down the principal.
III. Operational Details: How to roll 50,000 into 1,000,000
(The following is my personal configuration; please adjust leverage and position according to your own risk tolerance)
The principal must be profit
If this 50,000 is money you earned, don’t think about rolling positions when you’re losing. If your mindset is wrong, your skills will distort.
Position control: 10% total position, 10x leverage, 1x actual exposure
For example, with 50,000 principal, I only open 5,000 U in incremental positions, with 10x leverage, but the actual risk is equivalent to 1x spot. Set a stop loss at 2%, if you lose 100 U, withdraw, and never hold on.
Positioning Rules: Profit rolls into profit
Every time the price rises by 10%, I reinvest 50% of the additional profit into a new position, keeping the position ratio unchanged (still accounting for 10% of total funds). For example, if the first trade earns 1,000 U, the next position added will use 500 U.
A stop loss means shutting down, preserving your bullets
Once a stop loss is triggered, stop trading for the day. Prevent emotional averaging down; one mistake can wipe out ten times the profit.
Ride the wave of the market to the end
Assuming you catch 50% of the main uptrend, compounding could yield 3-4 times. 50,000 → 200,000 → 1,000,000, two waves are enough.
IV. Risk Control: Staying alive is more important than making quick profits
Do not roll in a volatile market: when the Bollinger Bands are contracting, forcibly go to cash to avoid being slapped by the ups and downs.
Do not roll falling coins: before the trend confirms reversal, bottom-fishing is like catching a flying knife.
Profit Layered Lock-up: Withdraw a portion every time you earn 30% profit, securing wealth by buying a house or a car. Only leave 'profit bullets' in the account.
V. Mindset: Rolling positions is about waiting for fate, not gambling with your life.
I've seen too many people fail due to three things: holding on, gambling everything, and frequent trading. The essence of rolling positions is 'better to miss out than to roll recklessly'.
The last sentence of truth:
From 50,000 to 1,000,000, what you need is discipline and patience. You only need to roll 3-4 times in a lifetime to cross the class divide. If you fail the first time, go back to accumulate principal and practice your feel; the market is always open.
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