Basic theory:

The strong are in the market, and the weak will always be weak!

The basic theory of the whole set of ideas is that, assuming that the sectors in the cryptocurrency circle are rotating, the main force will harvest leeks through the rotation of different sectors according to the overall idea.

The phenomenon is that we often see different market heat in different sectors. Sometimes the market heat of one sector is relatively hot, and after a while it will shift to another sector.

My understanding is: although the market is constantly changing, the targets are constantly changing, and the types of funds are constantly changing, the group of people who speculate are still the same, and there is not much change.

Basic skills:

1. Understand the capital flow, and control the turnover rate of different sectors, overall transactions, and capital inflow and outflow in real time. Accurately locate the sectors with large amounts of capital inflow (the difficulty lies in that it seems difficult to control the overall data of CEX and DEX). If the first point cannot be achieved, look at the second point.

2. Control the public opinion in the community. Look at some well-known KOLs, what they are promoting, and which of their coins are profitable. Most of the time, someone buys when the price goes up, and someone sells when the price goes down. Basically, they will issue coins that have skyrocketed. So this will help you select some tokens, and then find the sector corresponding to this token. If the second point cannot be achieved, look at the third point.

3. Look at the binance market rankings and select the coins with the highest increase. Find the corresponding sector. Look at the capital panel to see the overall capital inflow and outflow.

4. The most important point is to control risks, control risks, and control risks. The control of the head village must be strictly implemented. Generally, tools are used to do this.

Overall effectiveness of the strategy:

It is effective when the overall sector is in market heat and when the overall sector is in a bull trend.

If you encounter a main force that runs away without fighting, the above few books will be invalid. So it is best to be neutral here. Don't take naked positions.

Timing control:

As for today's gamefi sector, the good news was released during the day, but some local areas did not respond in time, and the north wind has been blowing. The overall market was in a cooling-off period from 13:00 to 21:30, and was in the market start-up period after 21:00.

At this time, what you need to do is to pick out the strong ones to go long and the weak ones to go short. The position must be neutral, that is, the long and short positions are equal. Generally speaking, do both and don't pick some of them.

Under normal circumstances, prices must be driven by funds, and if there is volume participation, there will definitely be a trend.

Precautions:

1. Position value: long and short equivalent

2. If the differences in token price increases between sectors are already large, you need to enter the market with caution.

3. If you are using a scalping strategy, you don’t have to worry about the risk. If you are using intraday trading, pay attention to controlling leverage and position ratio. Enjoy life while you can.

This idea can also be used when some sectors are in a state of low volatility for a long time. Through long-term capital analysis, we can observe the main force's pull-up behavior, go long on the strong and short on the weak. During this period, we can realize the benefits after the outbreak by constantly adjusting the position ratio.

Of course, you can also choose your own combination model. It is actually very flexible. It depends on how you use it. The method is fixed, but you can make money if you use it flexibly.

There are actually many such methods, which I will discuss in detail later.