Trading Expert Shares: Four Key Points for Successful Trading

In the past five years, a senior FOF investor has conducted in-depth research on hundreds of fund teams and summarized four core elements of successful trading. This expert has been responsible for asset allocation in a family office with a technology background and has unique insights into the field of cryptocurrency.

Criteria for Selecting Excellent Traders

When evaluating funds and general partners, experts mainly focus on three aspects: performance, team, and strategy.

Performance Evaluation

For the secondary market of cryptocurrencies, due to the lower transparency of information, it is essential to focus on the following points:

• The authenticity and sustainability of performance
• Attribution analysis of past earnings
• Which historical performances can indicate future results

Team Assessment

An excellent trading team should possess the following qualities:

1. Integrity: Whether in proprietary trading or asset management, honesty and trustworthiness are crucial.
2. Hands-on approach: Core trading personnel typically do not exceed five individuals, and the leader must be directly involved in the trading.
3. Global perspective and adaptability: the ability to respond to structural changes in the market, with risk resistance and development potential.

Strategy Evaluation

Trading strategies need to align with current market demands and industry trends. Experts point out that there are gaps between the cryptocurrency secondary market and the traditional secondary market in several aspects, which presents both challenges and opportunities.

Methods for Traders to Continue Improving

1. Keep the information flowing: Communicate with the market, but have your own judgment.
2. Cultivate a high-dimensional perspective: view the cryptocurrency industry from a global perspective.
3. Leverage Street Smart: Use intuition and experience to generate excess returns.
4. Learn from the excellent: Seek high-level guidance in an uncertain market environment.

How Institutions Allocate Cryptocurrency Assets

The secondary market for cryptocurrencies can be divided into four categories:

1. Mining and HODLing
2. Technical Trading (including Quantitative Trading)
3. Subjective Trading Based on "Value"
4. DeFi Strategy

Current Market Performing Strategies

1. Currency-based enhancement strategy
   • TVL Game: Staking and Claiming Airdrops
   • Quantitative Trading: Good liquidity, considerable scale, controllable risk
2. Buy Bitcoin at a discount or participate in mining
3. Short-term strategies that outperform Bitcoin, such as CTA (Commodity Trading Advisor)

Recommended Reading

1. "Principles of Professional Speculation": A systematic explanation of the trading system.
2. Books related to central banks and monetary policy, such as "The Alchemist"
3. Literary works that explore human nature, such as Chinese Ming and Qing novels and French short stories.

By gaining a deeper understanding of these areas, traders can better grasp the mechanisms of market operations and human factors, thus making more informed decisions in a complex trading environment.