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The term "rolling positions" is often demonized in the crypto world, with many people immediately associating it with leverage trading and gambling on price movements. In reality, it's not that exciting. The core of the strategy boils down to four words: floating profit adding positions. Use the profits earned to expand your position, lock in the principal without moving it, and let the gains grow like a snowball—simply put, disciplined compound growth.
First, let's clarify the underlying logic. Use the profits to add to your position; the principal is always kept safe in the safe. Here's a practical example—$5,000 principal, 10x isolated margin mode, using only 10% ($500) as margin, so the actual leverage is 1x. Set a 2% stop-loss, meaning in the worst case, a $100 loss, which hardly affects the total principal. If you profit, your total funds increase to $5,500. Then, take 10% ($550) to open another position, with leverage still at 1x and a 2% stop-loss. Even if stopped out, the remaining funds will be more than the initial principal by $390. This is the logic of rolling positions—each time, using the gains to increase the next round of capital.
To truly master this method, there are three bottom lines you must never cross. First, leverage must be controlled, capped at 3x. For beginners, 1-2x is the safest, with a 33% fluctuation before liquidation, and a 2% stop-loss provides enough room. Second, the money used to add positions should come only from profits; the principal is a lifeline and must stay untouched. It's like fishermen using freshly caught fish as bait—at worst, they can't lose the boat that sustains their livelihood. Third, stop-losses must be "ruthless." 2% is the dead line; once reached, you must cut. Never keep thinking, "Maybe it will bounce back," because such psychology can destroy any trading plan.
For small funds aiming to turn around, rhythm is key. From $5,000 to $50,000 is the first stage—start with spot trading, buy main coins like BTC and ETH at market lows during a bear market, and sell after a 10%-20% rebound. Repeat this process to grow the principal to around $20,000, then try the feeling of 1x leverage again. The focus is on practicing stop-loss reactions and floating profit adding positions. When reaching the $50,000 to $300,000 range, focus on strong trend signals—like BTC regaining key moving averages or volume suddenly surging—and only act then. Take profits at 15%, using 30% of the floating gains to add positions; when gains reach 50%, take 20% profit off the table. When aiming for $300,000 to $1 million, patience becomes crucial—waiting for historic opportunities and being patient is the most valuable skill.
A key insight here: rolling position skills account for only 30%, while 70% depends on mindset. Don't be overly greedy trying to perfect your entries; missing an opportunity is far better than making a mistake in adding positions. Also, don't fear stop-losses—it's normal to get stopped out 3-4 times in 10 trades. Treat it as a necessary cost. From $5,000 to $1 million, you'll go through at least 2-3 bull and bear cycles—that's unavoidable. Using spare funds is fundamental. Practice with simulated trades multiple times to develop a feel, accept the "slow" pace. If you do all three, rolling positions can become a real tool for ordinary people to reverse their fortunes through discipline. Start with small profits, and let the wealth snowball grow gradually.