Original | Odaily Planet Daily (@OdailyChina)
Author | Nan Zhi (@Assassin_Malvo)
Last week, after introducing the deep evaluation system, the stability of Copy Trading No. 1 and No. 2 significantly improved, beginning to provide continuous financial support for other test accounts, and Copy Trading No. 6 achieved nearly fivefold growth in a week.
In this article, the author will update the progress of each wallet, showcase the tracking charts of copied addresses, and update the upgrade status of the deep evaluation system and future plans.
Risk warning: This system has been running since October 8, and has only been operational for 28 days. Although certain results have been achieved, from an objective perspective, the data volume and comparative experiments are insufficient, and rigor is limited; it is for reference only.
Funding progress and strategy display
As of November 4, 17:30 (UTC+8), the funding situation of each address is shown below; each account has different profit capabilities and growth curves based on the styles and strategies of copied targets. Among them, Copy Trading No. 6 achieved nearly fivefold growth in a week under certain special circumstances, with specific details in the next section.
This section will further showcase specific copy trading plans and the author's thought process during this process.
Details of the copied trading targets are shown in the figure below, among which
The left sidebar is the strategy bar, set differently based on the wallet's profitability, purchase frequency, and internal market profitability.
The center is feedback on practical results and preliminary evaluation system labels.
The right sidebar is based on the deep evaluation system (1) and the labels created, with label classifications as shown in the legend in the upper right corner.
(Note: The reasons for the left sidebar settings are detailed in (Diamond Hands, High Profit-Loss Ratio? What are the winning factors for Solana Meme trading?) and (Meme Cultivation Manual: Rebirth to Become a Diamond Hand (II)), the right sidebar is detailed in (Meme Cultivation Manual: Rebirth to Become a Diamond Hand (III)).)
Brief description of copy trading strategies
Copy Trading No. 1 and No. 2 are early selected low-frequency, high profit-loss ratio diamond hand addresses, and high drawdown addresses have been removed according to the guiding philosophy of the third article. The effects after removal are currently acceptable; in 6 days, the profit rate of No. 1 rose from 725% to 908%, and No. 2's profit rate rose from 84% to 138%.
Copy Trading No. 5 is an extremely low-frequency (only 11 purchases to date), high profit-loss ratio, extreme diamond hand address. These addresses were historically successful in high-position increases, hence are the only ones allowed multiple purchases, with a reduction in the amount for each purchase. However, due to the limited total number of transactions, there is currently no summary regarding the impact on the system's profitability.
Copy Trading No. 6 and No. 7 originally copied addresses that captured the most high-multiple tokens from No. 1 and No. 2 (elite strategy), totaling 3, referred to as A, B, C here. One night, A first purchased LUCE at a low price, then B bought at a high price. Due to the high price, B quickly took profits, losing all LUCE, while address A continued to hold until reaching the highest price at a market cap of $80 million, resulting in significant potential profit loss. Therefore, a split between one wallet and one copied target was conducted. Later, due to C's instability requiring substantial financial support, it was removed.
Before the split of Copy Trading No. 6 and No. 7, wallet B (i.e., No. 7) purchased a certain token, executing a large number of profit-taking operations. However, after the split, it no longer followed wallet B's operations, thus achieving unexpected gains and profits (about 50% of the total profits of No. 6). Therefore, although No. 6 increased fivefold in a week, it should actually be compared by merging No. 6, No. 7, and No. 2; the combined growth in one week was 10.6 SOL (increase of 132.5%), which still reflects a certain advantage compared to No. 2's growth of 8.1 SOL. (Note: The unexpected increase has led the author to plan to open a strategy trading account for testing, which will no longer follow sales but will sell based on the percentage increase.)
Testing No. 1-6 is used to test addresses that have outstanding highlights but insufficient stability, through ultra-small copy trading to test their long-term purchasing ability. If an account reaches zero, it will be liquidated and marked as unsuitable for copy trading.
Version iteration
Deep Evaluation System (1)
In the third article, the author mentioned that in order to further analyze the address's ability for 'bottom buying', the risk of 'high position FOMO' losses, the ability to leverage small amounts, stop-loss styles, and the level of 'diamond hands', the deep evaluation system (1) was launched.
Last week, the system further added two sub-modules: 'Copy Trading Effect Test' and 'Internal Performance Evaluation'. The complete evaluation results of the system are shown in the figure below.
The 'Copy Trading Effect Test' is still relatively shallow; its calculation method is total profit provided by GMGN ÷ first round of transactions, then converting each token's profit to accumulate, resulting in each address's 'profit after conversion'.
(First round of transactions = number of transactions between the first purchase and the first sale, taken from GMGN - address data - token transaction details; transferring tokens is also considered a sale.)
The reason for adopting this calculation method is that most copy trading systems only buy once for each target, thus it is necessary to assess the profit changes under this style. Ideally, the profit after conversion should decrease only slightly or even increase. The ideal situation arises because the high-profit tokens of the copied targets are bought at the right moment, while high-loss tokens come from multiple rounds of increasing positions.
The calculation method for 'Internal Performance Evaluation' is currently quite rough, first counting whether the token was purchased in a Pump within the internal market, and calculating the win rate and multiplier based on the total profit and total cost of the token. The purpose of this data collection is to evaluate whether to engage in internal market copy trading. If the 'internal participation rate' is too high + 'internal win rate' is high + 'internal multiplier' is too low, then there is a risk of cutting the copy trading. A low win rate and not high profit-loss ratio indicate that the internal market trading level is low, and it should not engage in internal market copy trading.
Future prospects
The copy trading system still has many areas that need improvement, currently planned improvements include:
Copy Trading Effect Test: Secondary adjustments based on the proportion of invested costs, adding upper and lower limits on market value, aimed at realistically simulating profitability under copy trading conditions.
Internal performance evaluation: Introduced the 'Copy Trading Evaluation System' mentioned in the second article, further clarifying the copy trading value of the internal market while completing the level test.
Increased holding alert system: Dynamically scans the positions of all diamond hands being copied, reporting tokens that multiple wallets are jointly holding or increasing their positions, providing information for active trading.
