The profit secret in a big dump: Why does "rolling positions" only allow a very few to become legends?

When the financial market experiences a big dump, cries of despair are everywhere, yet there are always sporadic "myths" that emerge. For example, the rumored Liangxi, who shorted with a mere ten thousand in capital, surprisingly reaped tens of millions. This sounds like an urban legend, but it reveals a cruel and intricate game rule: rolling positions. However, why is it that among countless challengers, only a rare few can truly master this "double-edged sword"? The answer lies in the starkly different paths of two legendary traders.

1. Dual Legends: The Showdown of High-Frequency Lightning and Trend Hunters

When it comes to rolling warehouses, Liang Xi and Tony are names that cannot be overlooked. They both rose during the wild era of cryptocurrency but have played out vastly different survival rules:

Liangxi ("Lightning Assassin"): Known for high-frequency trading, executing up to 207 trades in a single day. His battlefield is between seconds, relying on sharp market intuition and strict discipline of "small stop losses and quick profit taking" to counterattack from the brink of liquidation countless times. The core lies in: using high-frequency trial and error to capture instantaneous fluctuations; once successful, quickly withdraw part of the profits to lock in risks, while the remaining funds continue to "roll" into the next battle.

Tony ("Trend Folder"): In contrast, Tony is more like a lurking hunter. His "God Battle" started with a capital of 50,000 and rolled to 20 million within a year, relying not on speed, but on a sophisticated system composed of "dynamic leverage + mobile stop-loss." The essence lies in "folding time": daily lurking, only suddenly activating high-leverage positions when the market confirms a breakthrough of key resistance/support levels, and allowing the stop-loss point to move up with the profits, patiently "brewing" a huge trend space. His operations are fewer, but the scale of each bet and the precision of risk control are extremely high.

2. Dissecting "Rolling Warehouse": It is by no means gambling, but a precise engineering of probability and risk control.

The essence of rolling positions is to utilize the amplification effect of leverage to reinvest profits in a "compound interest" manner during unidirectional markets, achieving geometric growth of the principal. However, its core is not about gambling for wealth, but rather a strict survival system:

Start small, try endlessly: Begin with a very small principal amount (e.g., 300 USD), investing only a tiny proportion (e.g., 10 USD) each time, combined with high leverage (e.g., 100 times). This means that a 1% market fluctuation can double or wipe out this "micro investment". Strategically, strictly adhere to a single direction (either only go long or only go short), and set a hard stop line (e.g., if there are 20 consecutive failures, mandatory rest).

The Art of "Rolling": Profit Reinvestment and Risk Isolation: The key turning point lies in the first profit. Suppose the 20th attempt is successful, turning $10 into $20. At this point, immediately withdraw $10 in profit (locking in gains, reducing risk exposure), and continue to invest the remaining $10 (or according to Tony's strategy, only 70% of the profits) in the next round. If another 1% favorable fluctuation occurs, it will become $20. With just a 2% cumulative fluctuation, the original "micro bet" can quadruple. In a unilateral 10% market for Bitcoin, this cycle of "reinvestment-growth-reinvestment" can quickly catalyze hundreds of dollars into tens of thousands—provided you are not washed out by mid-course fluctuations.

Tony's "258" essence: dynamic upgrades and ceilings:
Leverage fluctuation: Start with a lower leverage and gradually increase it as profits accumulate (but set a limit, such as 30x), rather than going all-in with high leverage from the beginning.
Profit reinvestment ratio: Strictly limit each additional investment to only use a portion of the profit (e.g., 70%), rather than betting the entire profit.
Target ceiling: Set clear profit goals (e.g., $5000/$10000), and withdraw immediately upon reaching them to avoid greed.

3. The "Iron Rule" of Survivors: Human Nature is the Greatest Enemy

After experiencing a big dump 37 times, Liangxi is still able to rise, and Tony can "endure" to build a fortune of tens of millions, relying not on luck, but on instilling anti-human discipline into his bones:

Liang Xi Three Warnings:
Single loss ≤ 2% of principal (protect the foundation).
Profit reaches 30%, must withdraw 50% (secure the gains).
Continuous losses for 3 times, shut down for the day to avoid emotional revenge trading.

Tony's Hibernation Philosophy: When the principal rolls up to a considerable scale (such as tens of thousands of dollars), immediately enter a "dormant period." Wait for annual-level major trend signals (such as BTC breaking through key resistance levels accompanied by significant volume). At this time, restart the "micro-investment trial and error" cycle with only a very small proportion (such as $500). Such opportunities are scarce (about 1-2 times a year), and one must endure the brutal washout of false breakouts—those who cannot hold on or cannot resist leaving early are destined to be eliminated.

IV. Why do you always get liquidated? The three deadly psychological demons at work.

Ordinary traders often fail in the contract market due to:

"Haptic Syndrome": Ignoring trends, frequently opening positions in a volatile market, becoming the "transaction fee cash cow" for the exchange.

"Delusion": Obsessed with the myth of "hundredfold in one night", unwilling to wait for high certainty opportunities, exhausting ammunition in ineffective markets.

"Loss of Control Syndrome": Planning to stop loss at 5%, but falls to 10% while fantasizing about "holding on to recover", ultimately being completely swallowed by the market.

The survival rule of Liangxi and Tony is to turn trading plans into ruthless "machine instructions", for example: "Break through the previous high + volume increases by 150% → Open position 3%; Conditions not met → Shut down immediately". Hesitation is the abyss.

5. Ultimate Warning: The Survival Game on the Edge of a Blade

Rolling warehouse is a weapon specially designed for specific "snipers":

User Profile: A very small number of people who possess iron discipline, deep research ability, and can endure months of inactivity without acting rashly.

Core formula = micro-testing + profit reinvestment + target take profit + trend hibernation.

The harsh truth: Beneath every story of "turning ten thousand into tens of millions" lies the piled-up bones of countless liquidated traders. This is the starkest portrayal of survivor bias. Behind Liangxi's 30 million profit are the blood and tears of three liquidations amounting to 5 million.

If you still want to give it a try:

Hundred simulations: Use a simulated account to refine the strategy over a hundred times.

Lifeline principle: Always keep at least 50% of your principal off the exchange - this is the last spark for your comeback in desperate situations.

In the cryptocurrency world, there are no gods, only scarred survivors telling their stories. The magic of rolling positions does not lie in making you a god, but in using extreme risks to filter out those absolute disciplinarians who can lock human weaknesses within the cage of rules. Can you hold this knife?