Rolling positions in the crypto world are a double-edged sword—either turning a profit into seven figures or losing everything overnight, both scenarios have happened.

Some start with 5,000 USD and grow it to seven figures through rolling; others see their million-dollar accounts wiped out instantly. The logic of this game is actually quite simple: reinvest profits as principal, let unrealized gains continue to push forward, while locking the initial capital in a safe zone.

The mechanism is straightforward—after the first profitable trade, don’t withdraw, treat it immediately as collateral for the next trade. For example, if you open a 3x leverage long with 1,000 USD and make 300 USD profit, the next position will be opened with 1,300 USD. Even if the subsequent trade blows up, that initial 1,000 USD is already sitting safely in your wallet.

But rolling positions have three critical risk thresholds that must never be touched: no full position on the first mistake, keep the principal risk within 10%, and maintain leverage between 3-5x; only add to positions when profits reach 30%, using 50% of the profits; if two consecutive trades lose, stop immediately; a single loss should not exceed 2% of total funds, and if total asset drawdown reaches 15%, forced rest is required.

The real test is human nature. When making money, there's always a desire to earn a little more; when losing, there's a hope for a quick rebound. Rolling positions are not about predicting the market but about using rules to gain a probabilistic advantage.

Market conditions suitable for rolling positions must meet three criteria: a clear trend, sufficient volatility, and ample liquidity. Most of the time, you’re in cash waiting, only for those 20% of high-confidence opportunities. Capturing 2-3 waves a year is enough.

Ultimately, rolling positions are about using small errors to seek large profits, and discipline to fight greed. The two weapons that allow winners to survive in the crypto space are always: a clear mind and ironclad execution.