Closing positions is the fastest way to recover from losses.

When the cryptocurrency market enters a downtrend, some traders manage to generate spectacular profits. Liangxi made 10 million by shorting just 10,000 during a sharp market decline. While most traders suffer losses, why is Liangxi different? The secret lies in a strategy often echoed in trading communities: rolling positions, also known as position guling. This seemingly simple technique has proven to be a fortune-maker for some professional traders.

One of the most frequently mentioned names in this context is Tony. You may have never heard of him, but five years ago (around 2019-2020), he achieved a 20 million profit in one year starting with only 50 thousand. Tony’s trading guide on the rolling position technique is considered essential reading among derivatives traders. During the same period, there are also Liangxi and Hanbalongwang who achieved similar success. They are super influencers from the early cryptocurrency boom era.

Success story: from $300 to tens of thousands

Let’s look at a concrete example of how position management is a key component of this strategy in practice. Imagine you have $300 in capital (roughly 2,000 rupiah). This strategy begins by risking just $10 to open the first position with 100x leverage. Yes, exactly 100 times! This means every 1% market movement is amplified to 100% for your position.

The first crucial step is to decisively determine the market direction—are you bullish or bearish? This decision must be based on thorough analysis. Then, you must fully commit to that decision and not change direction arbitrarily. If you experience consecutive losses in the dozens, it’s a sign your prediction might be wrong. At that point, it’s better to pause for evaluation or even exit the market temporarily, waiting for a clearer trend reversal.

However, suppose on the 20th attempt, the market finally moves in your predicted direction. When the price moves up or down by 1%, your $10 capital becomes $20. Here, you take $10 as profit and leave the remaining $20 open as a position. This process is called rolling the position.

If the market moves another 1% in the same direction, $20 becomes $40. Now, the price has moved about 2%, and your capital has quadrupled. If you continue applying this strategy consistently, in a normal bitcoin fluctuation of about 10% per month, you could roll your capital into thousands or even tens of thousands of dollars.

The rolling position strategy you need to master

The mechanism of rolling positions combines several key elements. First is accurate market movement assessment. You cannot choose the direction carelessly. Technical analysis, fundamental analysis, or even on-chain metrics must be considered.

Second is setting clear profit targets. For example, when you reach $5,000 or $10,000 in profit, you should stop rolling and take your gains. This principle is vital because it helps lock in profits and avoid greed that could lead to total bankruptcy.

Third is waiting for the right momentum to restart. After accumulating tens of thousands of dollars, you can take a break and wait for a clearer, more significant market trend. Look for true up-and-down cycles in cryptocurrency—when a definite trend emerges, that’s the moment to use $500 as new capital and repeat the operation. Opportunities like this may only come a few times a year or even once a year, but when they do, the potential profit can multiply many times over within days.

Discipline and patience, the foundation of trading success

Behind every success story of rolling positions, there is one often overlooked factor: self-discipline. Many contract traders go bankrupt not because their strategy is wrong, but because they fail to apply it consistently.

The first common problem is inability to hold back. Traders keep opening new positions, repeatedly trading without a clear plan, and ignoring the big picture of the market. This is the easiest trap to fall into.

The second problem is impatience. Most traders want to make big money quickly but are unwilling to wait for the right opportunity. They enter the market at the wrong timing, driven by FOMO or nervousness.

The third problem is not following the plan. Even if they have a perfect trading plan, in practice, they don’t adhere to it due to emotions triggered by unexpected market fluctuations.

Avoiding traps that can bankrupt traders

Greed and impulsiveness are the biggest enemies in contract trading. Many traders start with a solid plan but deviate along the way in pursuit of faster results.

The consequence of greed is that if you don’t take profits immediately and keep rolling positions, a single misjudgment can halt everything. You could go bankrupt entirely, rendering all previous efforts useless. Unexpected market fluctuations, false breakouts, and extreme volatility are risks that are hard to predict and can cause entire strategies to collapse.

That’s why rolling position is a high-risk, high-reward strategy. It’s suitable for investors with strong discipline and extraordinary patience. You can use small capital to generate large profits, but the key is to accurately assess the market and strictly follow your plan.

If you can master these principles—controlling emotions, sticking to your plan, and avoiding greed—then position management is a crucial element of a strategy that can truly be the most efficient way to rapidly accumulate capital in the volatile cryptocurrency market.