Meme Cultivation Manual: Rebirth - I Want to Be a Diamond Hand (Final Chapter)

Original | Odaily Planet Daily (@OdailyChina)

Author | Nan Zhi (@Assassin_Malvo)

Since the launch of the first article 'Meme Practice Manual: Rebirth of the Diamond Hand' on October 8th, 63 days have passed. The author has shared the iterative ideas and process of the 'Address Evaluation System' with readers through 5 articles. Currently, the improvement space in 'finding suitable copy trading targets' is limited. However, copy trading is not only about discovering intelligent Addresses, but also requires continuous iteration and evolution of the copy trading system parameters and Address library. In this article, the author will share with readers the 'ways' beyond the 'skills' of finding Addresses.

Timing Ability

The buying window of Meme Token is usually very short, and the high and low points reflect the short-term ability of the Address, beyond which there is a larger macro element - timing ability. Meme also has a period of prosperity and decline in the market. There are times when you can make money even with your eyes closed, and there are times when there is no market at all. When selecting Address, the author will focus on following the "Token that profits or loses the most from Address during which period", such as the big truck market brought by BOME in March, the first spring of Pump in April, or the MOODENG zoo market period. At the same time, it is necessary to follow whether the Address is still trying to lose money during the dry season.

Positive Case

The reason why the funds of the author's "copy trading 1" are no longer experiencing significant changes is that several of the previously most profitable Addresses have all chosen to hibernate at the right time.

This discloses a previously strongest Address '9nbbRHnqfktLo9bkKBpVM3pC3ZRLdphME43ht4argN7Q' in the copy trading system.

The Address once bought ACT on the internal exchange, with a floating profit of 1 million USD when the Market Cap pumped to 40 million USD that night, but there was no selling operation until the community controversy heated up later, and the Market Cap dropped to 10 million USD before starting to sell.

According to GMGN data, it can be seen that this Address is approaching complete dormancy. Upon investigation by the author, it is possible that this Address may belong to @The__Solstice. From their tweets, it can be seen that The__Solstice has turned to the community development of a certain Token and is not engaging in PvP during the off-season.

(Note: This address, except for being dormant, has had multiple tokens that have made over a hundred thousand dollars in profit but have never been sold until they incurred losses. Copy trading is extremely difficult and is only provided as an example of timing ability. It is not recommended to engage in copy trading under the current market conditions.)

Reverse case

This disclosure reveals another powerful Address 'FKy2QyHNz2H7K8c4pZnifdP3ogrG4JujwNEB5bTzFEL3', which has an apparent profit of 470,000 USD in 30 days, but actually has 1.7 million USD worth of ZEREBRO, 1.7 million USD worth of GOAT, and a series of Tokens in its associated Address '3QnBeoPMPB3H78WgJssep7rs3A8477LR2FhtwrnZoRie'. In addition, it also has 2 self-copied Addresses and 2 dump Addresses, with extremely strong profit capabilities.

But why is it considered a negative case? The reason is that the Address still adheres to the Coin Hoarding strategy in the dry season of October's hot market, persisting in Coin Hoarding until dropping to zero in the past two weeks. The main account FKy has repeatedly depleted SOL and replenished it through transfers from the dump account, showing a lack of timing ability.

Copying trades is not starting a company, but "reversing the effect for the cause"

The current 'evaluation system' has a total of 28 parameters, which comprehensively evaluate the Address. However, even when the Address receives a high score, its outstanding strengths may be completely different. In simple terms, they earn different types of money, such as 'high-frequency chain scanning trial and error', 'tracking on-chain anomalies', 'mining genuine Dev Wallets for preheating projects', and various other methods, but one thing is common - they 'can earn a lot'.

The company has core business and needs to match members to carry out operations and make profits. If the employees are not suitable, they should be replaced. From this perspective, the company is the main body and regards employees as replaceable parts. However, the author believes that 'employees' are the core and the system should actively adapt to and cooperate with these excellent Address.

Specifically, in the initial version, the author increases or decreases the copy trading amount of the Address by calculating how much profit or loss each copy trading Address has brought to the copy trading system. If there are multiple losses, the copy trading amount will decrease to below the threshold, and the Address will be removed.

However, it was found in the subsequent process that this idea may be incorrect. The method focuses on the system itself, ignoring the basic elements that both copy trading and Address can "earn a lot". If you believe in mean reversion, you should not drop the amount after a loss, because dropping the copy trading amount at the next profit will not make up for the loss.

In practice, the author believes that a reasonable tracking method should be to track the profit and loss situation of the followed Address, rather than how much profit or loss the copy trading system has brought. But what is the difference between the two?

The difference lies in the fact that the operations of the followed Address are usually not, and cannot be completely replicated. The 'not' is reflected in the addition of Market Cap restrictions for the followers, for example, Tokens with a market capitalization greater than 5 million US dollars or Tokens created more than 24 hours ago will no longer be followed for purchase. The 'cannot' is due to the inevitable price difference caused by Slippage and priority fees.

If the followed Address is good at tracking hotspots on the internal market, but may not be able to trade on-chain due to the small capacity of the internal market (only 85 SOL), then the system should increase the Slippage and prioritize fees. Similarly, if the followed Address is good at chasing the market with a Market Cap of over 5 million US dollars, then the system should raise the Market Cap limit to match the other party's capabilities.

Continuously iterating to confirm the best target, reversing the cause and adjusting the system to the state adapted to the target is what the author considers the key to continuous operation.

Balance Tracking

The author has written a program to track the asset value of Address, which can be used to review the amount of the copytrading system and also to track the value changes of the copytrading object. Please see the specific code on Github.

Off-topic: Coin HoardingAddress

When evaluating smart Address, it was found that some top experts have been performing Coin Hoarding operations by transferring coins to empty wallets, such as early FWOG, michi, recent GOAT, ZEREBRO, etc. In addition to the absence of SOL (empty wallet) in these wallets, other characteristics include no purchase or sale records for all Tokens, and holding a large amount of high-value Tokens, etc.

So an idea was born to reverse search for these Coin HoardingAddresses, to see what coins these experts have newly hoarded, and collectively hoarding which coins.

No code is required to find such Addresses, and it can be quickly queried based on GMGN-Token-holder data. Taking ZEREBRO and '3Qn...' Address mentioned in the previous section as an example, it can be directly seen from the holder list that this Address currently holds 1.7 million USD worth of ZEREBRO, with a balance of only 1 SOL and no purchase records of the Token.

Appendix

Previous related articles include:

"Meme Manual: Rebirth of I Want to Be a Diamond Hand (Part One)," How to evaluate the intelligence level and follow-up value of a Wallet from a macro perspective

"Meme Cultivation Manual: I Want to Be a Diamond Hand in Rebirth (II)", an upgraded version of the first article, further clarifies the evaluation method. Introducing the 'play people for suckers' follow-up coefficient

"Meme Cultivation Manual: Rebirth - I Want to be a Diamond Hands (Part 3)", at the detailed level, how to evaluate the intelligence of 'buying the bottom' ability, the risk of losing money due to 'high FOMO', the ability to gamble big with small stakes, the stop loss style, and the degree of 'diamond hands'

In 'Meme Practice Manual: Rebirth - I Want to Be a Diamond Trader (Part 4),' from a practical standpoint, what perspective should be used to observe and showcase smart money, and how to decide on a copy-trading style.

The book 'Meme Training Manual: 48 Days 24x Copy Trading System Welcomes a New Upgrade' integrates the evaluation system to form a complete automated evaluation system.

The Meme Training Manual: I discovered the law of the golden birth time of the 'god plate' in 24 hours. At what time is the frequency of the golden dog highest?

"Meme Manual: What are the early buyer characteristics that are effective conditions for pump?"