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Is liquidation due to a contract? Often, it's not because of a wrong direction, but because the position and rhythm are completely messed up.
Many people don't understand what true rolling of positions means. Their understanding is like this: when bearish, they add to their position, deepening their principal, and eventually the last wave of the market causes a liquidation. This kind of approach is basically gambling with the principal.
Expert traders' rolling strategy is completely opposite—using profits to bear the risk, while the principal remains untouched. It sounds simple, but few can execute it properly.
**How to operate specifically?**
Step 1: Test the opening position. Start with 500U, leverage of 3 to 5 times, and set strict stop-losses. The goal is to verify the direction; if wrong, keep losses within the cost of trial and error. At this point, don’t be greedy.
Step 2: The key is—when the position profits reach 50%, this is not the time to exit completely, but to use this floating profit to add to the position. For example, with 500U, if you earn 250U, use that 250U to continue betting, maintaining the same leverage. The core logic is: let the profits take on the risk, while the principal stays safely in the account.
Step 3: When total profits approach the size of the principal, you must know how to protect it. Take profits from this portion, hedge where necessary, and let the remaining profits follow the trend to continue running, dynamically adjusting take-profit levels. The final result is that the principal remains intact, and profits grow through compound interest.
**Why do most people still get liquidated?**
Wrong direction is actually not the main reason. The real killers are chaos in position management and rhythm. Blindly holding positions, frequently adding to positions, emotionally increasing leverage—these behaviors all drain the principal and bring the account closer to liquidation.
The essence of rolling positions is to amplify the gains, not to gamble with the principal. The difference between these two is huge.
**Some iron rules that must not be broken:**
Never add to high-risk positions with the principal. Add to winning positions only after the market is fully confirmed; don’t rush. When profits reach a certain level, lock in some or hedge part of it. Stop-losses must be executed decisively; don’t hold through losses.
Currently, with such high market volatility, this rolling strategy actually has the greatest advantage. Strictly following this logic, the account curve can steadily rise, and the cycle of liquidation can be completely broken.
Dream less, discipline more. Use profits to run, let the principal rest. The market will come again; missing this one, there’s always the next. But to catch the rhythm precisely without losing your way halfway, you need this methodology.