Original | Odaily Planet Daily (@OdailyChina)

Author | Nan Zhi (@Assassin_Malvo)

Last week, after introducing the Depth evaluation system, the stability of copy trading 1 and 2 improved significantly, providing continuous funding support for other test accounts, and copy trading 6 achieved nearly 5 times the increase in one week.

In this article, the author will update the progress of each Wallet, display the tracking chart of the following Address, update the upgrade status of the Depth evaluation system, and future plans.

*Risk warning: The trap system started on October 8th and has only been running for 28 days. Although some results have been achieved, objectively speaking, the data volume and control experiments are insufficient, and the rigor is limited. It is for reference only.

Progress of Funds and Strategy Presentation

As of November 4th, 17:30 (UTC+8), the fund situation of each Address is as follows. The profit potential and rise curve of each account vary greatly depending on the copy trading object's style and strategy. Among them, copy trading number 6 has achieved an almost five-fold rise in a week under certain special circumstances. For specific details, please refer to the next section.

This section will further demonstrate the specific copy-trading plan, showcasing the author's mindset during this process.

The details of the follow-up object tracking are shown in the following figure,

• The left column is the strategy column, which is set differently based on the profit capability, purchase frequency, and inner disk profit capability of the Wallet.
• Central for actual combat result feedback and preliminary evaluation system tags.
• The right column is based on the Depth evaluation system (1) and the labels are classified as shown in the legend in the upper right corner.

(Note: For the reason why the left column is set, please refer to 'Diamond Hands, High Profit and Loss Ratio? What is the Winning Factor of Solana Meme Trading?' and 'Meme Cultivation Manual: Rebirth - I Want to be a Diamond Hand (Part 2)', for the content of the right column, please refer to 'Meme Cultivation Manual: Rebirth - I Want to be a Diamond Hand (Part 3)'.)

Brief Description of Copy Trading Strategy

• copy trading No. 1 and No. 2 are early selected low-frequency, high-profit/loss ratio, diamond hand Address, and removed the high-drawdown Address according to the guidance in the third article. The effect of removal seems acceptable for now. In 6 days, the profit rate of No. 1 rose from 725% to 908%, and the profit rate of No. 2 rose from 84% to 138%.
• copy trading 5 is an extremely low-frequency (only 11 purchase operations have been performed so far), high profit and loss ratio, extremely skilled Address. These Addresses, due to their historical success in increasing the position at high levels, are the only Addresses open for multiple purchases, and the amount of each purchase has been reduced. However, due to the limited total number of transactions, there is currently no summary of the impact on the system's profitability.
• Copy trading 6 and 7 originally copied the Address with the highest multiple of Token in copy trading 1 and 2 (Elite Strategy), a total of 3. Here they are referred to as A, B, and C respectively. One night, A first bought LUCE at a low price, and then B bought it at a high price, or due to the high price, B quickly took profit, resulting in the loss of all LUCE. However, Address A continued to hold A until the highest price with a market cap of $80 million, resulting in potential profit loss, so a split was made for a Wallet as a copy trading target. Later, C, being too unstable and requiring a large amount of funding support, was excluded.
• Before the split of copy trading 6 and 7, Wallet B (i.e. 7) purchased a certain Token, and this TokenWallet B made a lot of take profit operations. However, after the split, Wallet B no longer copy traded, thus harvesting unexpected increases and profits (about 50% of the total profit on the 6th). Therefore, although the 6th increased fivefold in a week, it should actually be compared with the 2nd by integrating the 6th, 7th, and 2nd, and the increase after integration is 10.6 SOL in a week (an increase of 132.5%), which still shows a certain advantage compared to the 8.1 SOL increase of the 2nd. (Note: The unexpected increase caused the author to plan to open a strategy buying and selling account for testing. Such accounts no longer follow the selling, but sell based on the percentage increase.)
• Test accounts 1-6 are used to test addresses that have prominent highlights but lack stability. Their long-term purchasing ability is tested through micro-trading. If the account drops to zero, it will be liquidated and marked as unsuitable for copying.

Version Iteration

Depth Evaluation System (1)

In the third part, the author mentioned the Depth evaluation system (1) was introduced to further analyze the ability of "bottom buying" of Address, the risk of losing money due to "high FOMO", the ability to win big with small bets, the style of stop loss, and the degree of "diamond hands".

Last week, the system further added two sub-modules, 'copy trading performance test' and 'internal performance evaluation', and the complete evaluation results of the system are shown in the following figure.

The "copy-trading effect test" is still relatively superficial at present. Its calculation method is the total profit provided by GMGN ÷ the number of initial trades, and then the accumulated profit after converting each Token to obtain the "converted profit" of each Address.

(The first round of trading volume = the number of transactions between the first purchase and the first sale, taken from the GMGN-Address data-Token trading details, transfer of Token is also considered as selling.)

The reason for adopting this calculation method is that most of the copy trading systems only copy the buy order once, so it is necessary to evaluate the profit and loss changes under this style, and the decrease in profit and loss after conversion is minimal or even rise to the ideal situation. The reason for the ideal situation is that the high-profit Token of the copy trading target is "buying once after being sure", and the high-loss Token is brought by "increasing the position" multiple times.

"The calculation method of 'Internal Performance Evaluation' is currently quite rough. First, it counts whether the Token was purchased in the Pump internal market. The win rate and multiplier are calculated based on the total profit and total cost of the Token. The purpose of this data is to evaluate whether copy trading is carried out in the internal market. If the situation of 'high internal market participation rate' + 'high internal market win rate' + 'low internal market multiplier' occurs, then the Address is at risk of play people for suckers copy trading. On the other hand, if the win rate is low and the profit and loss ratio is not high, it indicates that the internal market trading level is low and should not be copy trading in the internal market."

Future Outlook

The copy trading system still has many areas that need improvement, including those already planned:

• Copying effect test: According to the ratio of investment cost, the upper and lower limits of Market Cap are adjusted for the second time, aiming to simulate the profitability under the real copying state.
• Internal performance evaluation: Introduce the "play people for suckers copy trading evaluation system" mentioned in the second article to further clarify the value of copy trading in the internal market while completing the proficiency test.
• Increase holding warning system: dynamically scan the Holdings of all diamond hand copy trading targets, report multiple Wallets holding or increasing the Token together for the long term, and provide information for active trading.