From on-chain data to strategy optimization: Insights from a seasoned trader

In the cryptocurrency trading field, a seasoned trader from Taiwan stands out with his unique data-driven strategies. This trader entered the cryptocurrency space in 2017 and previously worked in the listing department of an exchange, focusing on on-chain data analysis and in-depth project due diligence. In 2022, he chose to become an independent entrepreneur, shifting his focus to on-chain trading and data-driven investment decisions.

His trading strategy has distinctive characteristics: it does not focus on narrative valuation but rather emphasizes on-chain monitoring and strict take-profit and stop-loss rules. He emphasizes that by setting clear take-profit and stop-loss strategies, trading can be freed from the interference of subjective emotions. His trading logic has evolved from focusing on the trading behavior of on-chain smart money, to team trading behavior, and finally to the behavior of key addresses of individual tokens.

Currently, his main holdings include BTC, ETH, and SOL. Recently, the successful trades of MOODENG have become an important validation of the effectiveness of his strategy. By tracking the on-chain behavior of MOODENG's main addresses, he has confirmed the trading theory of "following the main players" and achieved significant profits in a short period.

In terms of risk management, he emphasized the standardized strategy of "doubling down and cutting losses at half." This strategy avoids market sentiment interference with clear rules and verifies the feasibility of positive expected value through mathematical models. Maintaining a win rate of over 33% is sufficient to achieve long-term positive returns.

To better capture market opportunities, he and his team developed a series of tools, including a token insider analysis tool and a FOMO CALL signal system. These tools analyze the holding structure and address behavior of tokens through big data, identify major operations, and issue signals when a group of historically high-performing addresses collectively buys a certain token within a short period of time.

In practice, he emphasized the need to identify possible hidden behaviors of major players by continuously optimizing monitoring models. His strategy starts with tracking "smart money," filtering out high-performing addresses through tools, and creating his own monitoring list. Core methods include identifying collective actions, controlling positions, and responding to signals in a timely manner.

Regarding the capital rotation in the market, he pointed out the need to pay attention to the changes from mainstream coins to emerging public chains, and then to specific sectors such as Meme tokens. Real-time monitoring of trading volume and capital flow through on-chain data tools can assist in decision-making.

It is especially important to maintain calm and discipline during a bull market. He emphasized the need to maintain independent judgment, take profits at the right time, and establish a stable cash flow support. In the face of anxiety in trading, he suggested focusing on the trading framework, creating a calm communication environment, and keeping in mind the cyclical nature of the market.

In the end, he shared methods to enhance cognitive levels. He believes that the core of personal growth lies in upgrading one's circles, and communicating with individuals of high cognition can significantly accelerate one's cognitive iteration. In addition to reading books like "Rich Dad Poor Dad," he also suggested paying attention to on-chain analysis KOLs, participating in social media discussions, and exploring the integration of cognition between Web2 and Web3.

Overall, successful cryptocurrency trading requires data-driven strategies, continuous optimization, a stable mindset, and an ever-improving level of understanding. By following trading rules, maintaining independent judgment, and establishing stable cash flow and knowledge base, traders can gain a long-term advantage in this market full of opportunities and challenges.