Place your ads here email us at info@blockchain.news
Crypto Leverage Alert: 4 Pyramiding Traders Round-Trip Profits on Rolling Positions — Risk Lessons for Perpetual Futures | Flash News Detail | Blockchain.News
Latest Update
8/26/2025 2:55:00 AM

Crypto Leverage Alert: 4 Pyramiding Traders Round-Trip Profits on Rolling Positions — Risk Lessons for Perpetual Futures

Crypto Leverage Alert: 4 Pyramiding Traders Round-Trip Profits on Rolling Positions — Risk Lessons for Perpetual Futures

According to @EmberCN, four aggressive crypto derivatives traders who repeatedly pyramided with floating profits via rolling positions have round-tripped from large gains to zero or even principal losses after the latest move, highlighting the drawdown risk of this approach, source: @EmberCN on X, Aug 26, 2025. The pattern reported is the same style of rolling unrealized PnL to scale up, the same process of achieving huge gains through compounding, and the same outcome of giving back all profits, which is directly relevant for leverage risk assessment on perpetual futures, source: @EmberCN on X, Aug 26, 2025. For execution, the case indicates traders should prioritize partial profit-taking and de-leveraging into volatility instead of continuously compounding with unrealized gains to mitigate tail-risk of equity wipeouts, source: @EmberCN on X, Aug 26, 2025. The post discloses sponsorship by Bitget, providing context for derivatives participants reviewing platform risk disclosures and leverage settings, source: @EmberCN on X, Aug 26, 2025.

Source

Analysis

In the volatile world of cryptocurrency trading, stories of dramatic rises and falls serve as cautionary tales for traders navigating the markets. A recent tweet from crypto analyst @EmberCN highlights a group of traders dubbed the 'Rollercoaster Team,' including the infamous 'Gun Cang Ge' who reportedly spit back all profits this morning after aggressive rolling position strategies. These traders share a common aggressive style: using floating profits to roll into new positions, achieving massive gains temporarily, but ultimately returning to square one or worse, often losing principal. This narrative underscores the high-risk nature of leveraged trading in cryptocurrencies like BTC and ETH, where market swings can erase fortunes overnight.

Crypto Trading Risks: The Perils of Aggressive Rolling Strategies

The 'Rollercoaster Team' exemplifies the dangers of floating profit rolling, a tactic where traders continuously reinvest gains into larger positions without securing profits. According to @EmberCN's post on August 26, 2025, these four traders all followed this path: starting with substantial profits through bold moves in crypto futures or spot markets, only to see everything evaporate due to market reversals. In the broader crypto landscape, such strategies often amplify exposure during bull runs but lead to devastating liquidations when sentiment shifts. For instance, if we consider recent market volatility, BTC has experienced sharp corrections, with prices dipping below key support levels like $60,000 in recent sessions, according to general market observations. Traders employing rolling tactics must watch on-chain metrics, such as increased liquidation volumes on exchanges, which spiked during downturns, signaling over-leveraged positions being wiped out.

Market Sentiment and Institutional Flows in Crypto

Market sentiment plays a crucial role in these outcomes, as hype around altcoins or meme tokens can fuel aggressive plays, but institutional flows often dictate long-term stability. Without real-time data, we can note that broader crypto market capitalization has fluctuated wildly, with ETH facing resistance around $3,000 amid regulatory news. The 'Rollercoaster Team' story aligns with patterns where retail traders chase quick wins, ignoring risk management. Institutional investors, on the other hand, tend to hedge with diversified portfolios, reducing exposure to such volatility. Trading volumes in major pairs like BTC/USDT have shown correlations with these events, where sudden spikes in sell-offs lead to cascading liquidations, as seen in past crashes. This highlights trading opportunities in more conservative approaches, such as spotting support levels for long entries after corrections.

For traders looking to avoid the 'over mountain car' fate, focusing on technical indicators like RSI oversold conditions or moving averages can provide entry points. In a market where BTC dominance influences altcoin performance, understanding cross-market correlations—such as stock market dips affecting crypto sentiment—is key. The lesson from @EmberCN's analysis is clear: while rolling strategies can yield giant profits during uptrends, they often end in total profit spit-back or losses without strict stop-losses. As crypto markets evolve, emphasizing sustainable trading over aggressive gambles could prevent joining this unfortunate team.

Exploring further, the integration of AI in trading bots has started to mitigate some risks by automating risk assessments, potentially benefiting tokens like those in the AI crypto sector. However, human greed often overrides even advanced tools, leading to outcomes like those in the 'Rollercoaster Team.' With cryptocurrency prices prone to rapid changes, traders should monitor 24-hour volume changes and whale movements on-chain for better decision-making. Ultimately, this story serves as a reminder that in crypto trading, discipline trumps aggression for long-term success, offering insights into avoiding common pitfalls in volatile markets.

余烬

@EmberCN

Analyst about On-chain Analysis