Recently, many people have misconceptions about the rolling position strategy, thinking that it carries huge risks. In fact, my understanding is completely the opposite. Instead of saying that rolling positions is risky, it’s more accurate to say that many people simply don’t understand what true risk management is.

Let me give an actual example. Suppose you have 50k dollars—this amount is your profit from trading, not your principal. This is very important. When Bitcoin was at $10k, you used 10x leverage but only opened a 10% position, which is $5,000 margin. Calculated this way, it’s effectively equivalent to 1x leverage. Set a 2-point stop loss, which is a 2% loss—that’s only $1,000. Why do many people get liquidated? Even if they really hit the stop loss, at most they only lose that $5,000 margin. How could they lose everything?

On the other hand, if your judgment is correct and Bitcoin rises to $11k, you continue to add positions using 10% of your total funds, with the same 2% stop loss. This time, you make an 8% profit. See, where is the risk here? Many say it’s risky, but I want to ask them: exactly where is the risk?

This logic continues: if Bitcoin keeps rising to $15k, and you keep adding positions smoothly, this 50% move could earn you over $200k. Catching two or three such moves can multiply your capital several times over. It’s not about earning 10% daily or 20% monthly compound interest—that’s nonsense. 100x returns are built from stacking two 10x gains, three 5x gains, or four 3x gains.

The idea of rolling positions itself has no risk; in fact, it’s one of the most reliable methods in futures trading. The real risk lies in the choice of leverage. You can roll with 10x leverage, or even with 1x— I usually use 2 to 3x leverage, and still capture dozens of times the gains. If you think the risk is too high, you can use just a fraction of a leverage, like 0.1x—what does that have to do with rolling positions? It’s clearly a matter of your own choice of leverage multiple.

My consistent advice is this: only invest one-fifth of your total funds into cryptocurrencies, and within that, only one-tenth into futures trading. This means futures account funds make up only 2% of your total assets. Plus, use only 2 to 3x leverage, focus solely on Bitcoin, and the risk is already greatly reduced. If you have a total of 50k dollars, only allocate 20k to futures—can your mindset be the same?

Regarding small funds, I see many people have a misconception: they think small capital should do short-term trading to double quickly. Wrong. Small funds should actually focus on medium- to long-term positions. A sheet of paper folded 27 times is 13 kilometers thick; fold it 37 times, and it’s thicker than the Earth. Small capital should rely on compound interest to double repeatedly, not on earning tiny profits every day. For example, if you have $30k, aim to triple it in one move, then triple again in the next, and you can quickly grow to hundreds of thousands. Don’t try to earn 10% or 20% daily—that will eventually ruin you.

Some also say that futures are risky. I think that statement itself is flawed. The real risk comes from people, not the contracts. Want to be relatively safe? It’s simple: use profits from spot trading to play futures. First, buy spot with $200k. After half a year, if you earn profits, take out $50k to trade futures. If you lose it, so be it—it's just profit. The gains from spot can offset futures losses. With this approach, what risk are you afraid of?

My own method is to allocate between $300k and over $1 million across spot accounts, and about $200,000 in futures. When opportunities are abundant, add more; when not, add less. I regularly withdraw a quarter or a fifth of my futures profits to keep separate, and even if I get liquidated, I still keep some of the profits. With this kind of capital management, even if the futures account gets wiped out, it’s no big deal—the spot gains continue to supplement.

My advice for ordinary people is: use one-tenth of your spot holdings to trade futures. For example, if you have $300,000 in spot, allocate $30k to futures. If you get liquidated, use spot profits to replenish. Repeat this process ten or twenty times, and you’ll naturally learn some strategies. If you haven’t figured it out yet, stop—this path might not be suitable for you. Remember, the core of rolling positions is position management. Once you understand that, it’s impossible to lose all your money.