Key Definitions
Long
Betting that the price will go UP ⬆️
Short
Betting that the price will go DOWN ⬇️
Hedge
Execute both a LONG and SHORT position simultaneously to reduce risk. Normally the leverage and bet sizes will be different to balance the positions. This allows trading in both directions at the same time when specifically instructed.
Leverage
Borrowed funds to amplify trading position (e.g., 10X = 10 times your capital)
Scalping
Making many small, quick trades to profit from tiny price movements
Cross Margin
Your entire account balance is used as collateral - NEVER USE THIS!
Isolated Margin
Only the specific amount you allocate is at risk - ALWAYS USE THIS!
Core Trading Rules
Rule 1: Position Sizing
Use an amount small enough that you can double it 3 times in case of 3 consecutive liquidations. This protects your capital from total loss.
Rule 2: Exchange Selection & Leverage
Use
Rollbit.com for leveraged trading when possible (no slippage/maintenance fees). If using Binance/Bybit, use LESS than half the specified leverage due to their fees.
Rule 3: Signal Priority
Latest signal ALWAYS negates previous signals UNLESS told to hedge (then both signals remain valid).
Rule 3A: Opposite Direction Auto-Close
When a new signal is issued in the OPPOSITE direction of your current position, it automatically means CLOSE and TAKE PROFIT on your existing trade, then START NEW TRADE in the new direction. EXCEPTION: Only when I specifically say "hedge" can you maintain positions in both directions simultaneously.
Rule 4: Trade Announcements
Announce ALL trade entries and exits in the group for admin review and strategy adjustments.
Rule 5: Entry Timing
Enter trades within 1-2 minutes of signal. If delayed, verify current price is same or better than signal price.
Rule 6: Large Move Protocol
On large fast moves, close at least 50% of orders, wait for slight retrace, then restart positions.
Rule 7: Capital Preservation
Never give money back to the market. Protect your gains!
Rule 8: Profit Taking
Start taking profits immediately. Extract initial equity as soon as possible.
Rule 9: Away Protocol
If away during a trade: Close and re-enter with 50-70% less leverage (e.g., 100X → 30X). MUST set stop loss before leaving.
Rule 10: Practice First
Before using significant money, establish 5:1 win rate with $1 trades. Build track record first!
Rule 11: Scalping Practice
Practice scalping micro price movements at high leverage to develop quick reflexes.
Rule 12: Patience Pays
Wait a few minutes for better prices. Patience almost always rewards you with better entry/exit.
Rule 13: NEVER Use Cross Margin
ALWAYS use Isolated Margin. Cross margin gives the exchange full access to your entire account. They will find ways to take your money through:
- Funding rates every 8 hours
- Market fees
- Maintenance margin fees
- Liquidity fees
- Order book density costs
With cross margin, you cannot calculate risk/reward in real time since your entire account can be liquidated. Rollbit always uses isolated - you can never lose more than your bet amount.
Rule 14: NEVER Use Stop Loss
Exchanges use stop losses as a loophole to charge more fees. Have you noticed setting a 10% stop loss but suddenly being down 25%? This happens because you're market dumping into:
- Low liquidity zones
- Maintenance margin fees
- Funding rate fees
- Order book density inefficiencies
Rollbit sets a fixed liquidation line that never moves. Whether liquidity is high or low, your liquidation point stays the same. This allows easy risk/reward calculation. Plus, Rollbit's liquidation margin is 200%+ bigger than Binance/Bybit.
Rule 15: Compound Interest
Start with $1 bets to establish a win rate. Remember how much $1 becomes if you compound it 50% daily: 30 days - $191,751; 40 days - $11,057,332; 50 days - $637,621,500.
Rule 16: Signal Format
Understanding signal formats is crucial for executing trades correctly:
Basic Signal Example:
$5 btc eth sol 50x 150x short
• $5 = Total bet amount (divide across positions)
• btc eth sol = Trade Bitcoin, Ethereum, and Solana
• 50x 150x = Use both 50x and 150x leverage (diversify)
• short = Bet on price going DOWN
Long Signal Example:
$10 btc 100x
• $10 = Total bet amount
• btc = Trade Bitcoin only
• 100x = Use 100x leverage
• (no direction) = LONG (betting price goes UP)
Multi-Leverage Example:
$20 eth 30x 90x short
• Split $20: $18 at 30x, $2 at 90x
• Why? Higher leverage = 9x smaller position
• This balances risk across leverages
Hedge Signal Example:
$5 btc 50x hedge
• Keep existing positions open
• Add this new position in opposite direction
• Both trades remain active for risk reduction
Golden Rules for Success
Risk Management is EVERYTHING - Never risk more than you can afford to lose 3 times.
Discipline beats emotion - Follow the rules even when your gut says otherwise.
Small consistent wins > Big risky bets. Compound growth is powerful.
Always have an exit strategy BEFORE entering any trade.
Use ISOLATED margin only - protect your capital from exchange manipulation.
Fixed liquidation lines beat stop losses - know your exact risk every time.