Rhythm is more important than high profits; surviving is key above all.
Last December, I only had 1000U in my account, which was negligible in the eyes of big players in the crypto world. Now, this number has turned into 10WU+. This is not a myth, nor did it rely on life-risking hundred times leverage, but rather on the two words 'rolling positions', step by step.
Today, I will share my practical experience and tell you how small capital can survive and grow.
1. The essence of rolling positions: it is not gambling, it is a mathematical game
Many people associate rolling positions with high leverage liquidation, which completely misunderstands its essence. The true core of rolling positions is three words: 'compound interest'. It means that every time you make a profit, you reinvest a portion of the profit as capital for the next trade, allowing the capital to grow larger like a snowball.
My own understanding is that rolling positions means 'using profits to take risks, with principal safety first.'
How to operate specifically? For example, starting with 1000U, I only use 30% for the first trade, which is 300U. Set a strict stop loss; if I lose, I lose. However, once I profit, say I earn 100U, I will use this 100U profit plus part of the principal for the next trade, but keep total position control within 30% of the principal. The key is, when the funds roll to 2000U, I will first withdraw 1000U of principal, so what I play with later is all profit.
This is called the 'zero risk principal mode,' which is also the key to my calm mindset: the worst outcome is merely a profit withdrawal, but the principal has already been secured.
Two, I only use three rhythms and do not engage in more.
1. 15-minute short-term breakout targeting.
This is my main profit rhythm. I only trade one type of pattern: a price breakout on the 15-minute level of the daily small platform, with MACD just crossing.
For example, AR coin consolidated around 0.5U for 2 hours that day, suddenly increasing trading volume, and the price broke the previous high of 0.52U. MACD crossed above the zero line. I entered at 0.521U, with a stop loss set at 0.515U. As a result, after a few minutes, the price surged to 0.54U, and I took 3 points and exited.
The key to this approach is 'breakout confirmation': it must be a true breakout, not a false one. My criteria for determining a true breakout are two: first, the trading volume must be more than twice the usual amount; second, the price must not break the previous high after the breakout.
2. Daily profit-taking and reinvesting.
I only make 1-2 trades a day, absolutely no more. After each profit, I will withdraw 50% of the profit to store separately, with the remaining 50% plus the originally planned order amount as the principal for the next trade.
For example, if the first trade earned 100U, I withdraw 50U, leaving 50U plus the next 300U to invest, totaling 350U as the principal for the next trade. The benefit of this approach is: it ensures profit retention while allowing for compounding growth.
3. Controlling your hands is the highest skill.
90% of the time in the crypto circle is in a fluctuating market; the truly worthwhile opportunities are less than 10%. I have set three iron rules for myself:
Do not trade late at night: never trade when not focused.
Do not open positions outside the fluctuation range: observe when there is no clear direction.
Stop trading after two consecutive losses: do not trade again that day to prevent emotional trading.
These three points seem simple, but they are lessons learned with real money. There was once a time when I traded 10 times in a fluctuating market in one day, resulting in a 30% loss of principal. Since then, I've understood: trading is not about being diligent to get rich, but about waiting for the right moment to act.
Three, my practical case: the rolling path from AR to ETH.
On December 15 last year, I started my first trade:
First trade: AR coin breakout.
Entered at 0.52U, using 30% of the position (300U), with a stop loss set at 0.515U. 15 minutes later, the price surged to 0.54U, and I profited 3.5%, earning about 10.5U. According to the rules, I withdrew 5U profit, leaving 5.5U to continue with the next principal.
Second trade: ETH pullback confirmation.
At that time, ETH was fluctuating around 2200U, suddenly breaking through 2220U with increased volume. I entered at 2221U, with a stop loss at 2215U. This trade yielded a 2.5% increase, earning about 25U.
Third trade: BNB breakout.
After BNB consolidated around 655U for 2 hours, it broke out. I placed an order at 655.5U in advance and ended up catching a rapid rise, taking profits at 662U, earning about 60U.
With this rhythm, I do a maximum of two trades a day, sometimes just one, and sometimes I go several days without trading. After a month, 1000U turned into 3500U. The key is, during this period, I never faced a margin call, and my maximum drawdown was kept within 15%.
By the second month, when the funds rolled to 7000U, I made an important decision: withdraw 2000U of principal, leaving 5000U as pure profit to continue operating. This made me feel more relaxed because what I was playing with next was pure profit.
Four, details determine success or failure: my five key techniques.
1. Setting stop losses is more important than entering.
I have a principle for setting stop losses: the stop loss must be at a technically obvious support/resistance level. For example, in breakout trades, set the stop loss just below the upper edge of the previous fluctuation range. Even if stopped out, it proves my judgment was wrong; sometimes you have to admit defeat.
2. Only trade mainstream coins, do not touch altcoins.
My trading targets are concentrated only on these three mainstream coins: BNB, ETH, BTC. Although some altcoins have larger fluctuations, they also carry greater risks. As a small fund, I need steady growth, not gambling.
3. Position management is an art.
When funds are below 10,000U, I do not exceed 30% for a single position; between 10,000 and 30,000U, no more than 20%; above 30,000U, no more than 10%. This ensures growth while controlling risk.
4. Emotional management is the highest realm.
I once regretted missing an opportunity, and impulsively opened a position, resulting in a loss. Now I view missing out just like I view profits: the market always has opportunities; if you miss one, there will be another.
5. The key to compounding is not drawing down.
The most critical thing for small funds to grow is not how much one earns in a single instance, but how to control drawdowns. My goal is: monthly profits don't have to be the highest, but drawdowns must be minimal. Practice proves that controlling drawdowns naturally brings profits.
Five, for those starting with similar small funds.
If you only have a few thousand U and want to grow by rolling positions, I have a few sincere suggestions:
First practice with a simulated account over 100 times, find your rhythm before trading live. Start with a small position; the focus is on familiarizing yourself with the methods, not on making money. Be sure to withdraw regularly, preserving the principal before seeking profit.
Rolling positions is not a method for getting rich overnight, but a mindset: winning with mathematical probability, using time to exchange for space.
My deepest realization is: in this market, those who survive will ultimately make money. The key to survival is not how skilled your technique is, but how strict your risk control is.
Small funds need patience the most, not quick profits. Just like folding a piece of paper 27 times can exceed the height of Mount Everest, each fold (doubling) seems small, but after several times, the effect is astonishing. Follow Bin Ge to learn more first-hand information and precise points in the crypto circle, becoming your guide in the crypto world; learning is your greatest wealth!
