Hot info:

1. Hong Kong starts trading spot Bitcoin and Ethereum ETFs on the Hong Kong Stock Exchange today

2. Sun Yuchen's address transferred 8,170 ETH from Binance again, equivalent to 25.92 million US dollars, and bought ether at an average price of 3,193 US dollars

3. On April 29, nine spot Bitcoin ETFs reduced their holdings by a total of about 2,302 BTC

4. MicroStrategy added another 25,250 bitcoins in the first quarter of this year, and its total bitcoin holdings now reach 214,400;

Do you understand the transaction?

If you have 1 million yuan, and it first increases by 100% and then decreases by 50%, how much will be left?
The answer is 1 million yuan.

If you have 1 million yuan, and it first drops 50% and then rises 50%, how much will be left?
The answer is 750,000 yuan.
If it rises 50% and then falls 50%, how much will be left?
The answer is also 750,000 yuan.

If you have 1 million yuan and use quantitative strategies to make an average of 10% steady profit every month, with compound interest for 12 months, how much will you have left after one year?
The answer is 3.14 million yuan
How much will be left after 2 years?
The answer is 9.85 million yuan.

What do the first two examples illustrate? They illustrate that in trading, controlling drawdown is always the first priority. In real life, many people may be able to achieve 100% or even 200% profit in the short term, but in the long run, as long as the profit drawdown exceeds 50%, the final result is still to be beaten back to the original shape by the drawdown, and it is all in vain.

What does the third example illustrate? It shows that a steady monthly return is not inferior to a high return with higher volatility. A steady return of 10% per month is already quite impressive! On this basis, compounding interest every year, over a longer period of time, the returns will become very impressive!

From the perspective of a stock market master, why can Buffett become the stock god? It is not because he can easily double his investment in the short term, but because he can maintain a profit of more than 20% for 47 years.

Many people may be able to achieve a profit of more than 20% in the short term, but it is rare to be able to maintain it for more than five or ten years. Therefore, we should all keep a normal mind, be down-to-earth, and always believe in the power of compound interest.

Be sure to do a good job of position management!

BTC

Yesterday's analysis time: Today is a turning point; Space: 61800-60700 demand area is the falling target, the lowest price is 61765; Structure: 4H3 lows bottom divergence; So the conditions are met to rebound! But the price is still in the oscillation range of 67200-61800. The reversal has not been confirmed yet! Still need to wait patiently!

ETH

The demand zone of 3140-3070 given yesterday also accurately captured the pin, with the lowest price at 3115! As long as this area is not effectively broken, there is still a probability of upward movement, but it also needs to be synchronized with BTC, otherwise it will be difficult to get out of the unilateral market! Wait patiently!

Popular players in quantitative strategies:

OP, ARB, CFX, LINK, MATIC, SUI, ORDI, ICP, NEAR, APT, SOL, IMX, AGIX, ACH, BNB, SNX, DOGE, FLOW

(The maximum number of currencies that can be opened at the same time for quantitative trading is no more than 10. The fewer currencies that are opened, the stronger the risk control capability.)

Standard package for positions above 10,000U:

A stable combination (BTC, ETH, SOLANA, BNB,) + any 2 combinations (LINK, OP, ARB, SUI, APT, NEAR, ICP, IMX, FLOW) + 1-2 popular combinations

Note: This stable combination is suitable for long-term configuration. Any 2 combinations can be replaced regularly. It is currently a popular short-term configuration!

Countermeasures for insufficient positions:

Suspend all strategies (to avoid locking the API), and set the strategy type to conservative or extreme!

If you have a spare position, you can transfer the spare position to the spot account!

If there are positions that are released, the strategy of the currency with large floating losses can be suspended first, so that the closed positions can be used to release positions with currencies with small floating losses more easily and profitably!

Seize the opportunity of market rebound, release the currency positions, and adjust and reduce the position ratio in time!

Enable sharding strategy as appropriate! (2-3 shards)

Quantitative strategy combined configuration:

For large effective position ratios (more than 3 times), use conservative or extreme

The effective position ratio is small (less than 3 times), conservative

In the current market, we can focus on implementing this practical technique (with good results):

1. After the strategy covers the 4th position, the strategy type can be adjusted to conservative!

2. When the 4th position of the strategy is closed with profit, adjust the strategy type to stable or volatile!

The information and data involved in this content are derived from publicly available materials, and we strive to be accurate and reliable, but we do not guarantee the accuracy and completeness of the information. The content does not constitute any investment advice, and you are solely responsible for investing based on it!