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Recently, many people have been discussing the pitfalls of contract trading, and it suddenly struck me with a harsh truth: liquidation is never caused by bad luck, but rather by not understanding how to do rollovers properly.
I've encountered too many leveraged contract traders, and watching their methods really makes me want to say something. When the market rises by 10%, they rush to close their positions and exit, missing out on subsequent tenfold rallies. Conversely, during a sharp decline, they stubbornly add to their positions, only to be wiped out by a sudden rebound that feels like a needle piercing through. What's even more heartbreaking is that they clearly see the right direction but get shaken out during a small 5% pullback... This kind of operation is more mystical than randomly buying a lottery ticket.
So, how do true experts play? It's actually very simple—do the opposite.
Many people completely misunderstand rollover strategies. They treat rollover as a gambling game of "floating profits adding to positions → all-in gamble → get rich overnight," but this path is a dead end. The correct rollover philosophy has only three core principles: the principal must be strictly protected, additional positions should only be added at critical points, and only the profit portion should be used to expand the position.
Let me give you a practical demonstration of how the inverted pyramid rollover strategy can profit from the market.
Suppose you have 10,000 USDT in your account, and you predict that a certain coin will soon crash. Here's your operation process:
**Step 1: The probing phase.** Don’t go all-in right away. Invest only 500 USDT, with 100x leverage, so your actual position size is 50,000 USDT. The key is to set your stop-loss in advance, just 2% above the opening price. If the signal isn't confirmed, stay firm and don’t move.
**Step 2: The first addition.** When this trade earns 50% of the initial 500 USDT, that is 250 USDT profit, take half of this profit (125 USDT) to add to your position for the first time. If the price continues to break in your predicted direction and the previous low is thoroughly breached, then put 70% of the remaining profit into the position again.
**Step 3: Risk hedging and harvesting.** When your floating profit exceeds the initial principal, immediately open a hedge position to lock in gains. If the decline accelerates, you can even open a "ghost position"—a small, high-leverage counter-position—to eat the last, most aggressive drop in the market.
After completing this process, with a principal of 20,000 USDT, if you happen to catch a 30% crash, you could end up with 96,000 USDT. This is not luck or gambling; it’s about strictly following rules and disciplined position management.
The market is indeed brutal; it punishes those who don’t follow rules and operate on gut feelings. But conversely, as long as your methodology is correct, the market will obediently transfer money into your account.
If you still have doubts about this approach or want more systematic trading guidance, feel free to discuss further. The key is to remember: in the crypto market, only those who survive are the winners.