Today, during this pullback, we discussed strategies on how to effectively take profits and set stop-losses in a wave that looks like a 'major trend'.

I found that some friends do not think this trend will continue, while others have almost sold out and are preparing to capture capital rotation in CEX. Of course, there are still many people who agree with the trend of AI Agents.

Once I have a positive outlook on a trend and its main targets, I completely give up on swing trading and hold on until the trend ends.

Looking back, many of the hundredfold coins I dealt with during the time of $BTC, $BNB, and Defi Summer followed this path.

My previous problem was that I could buy but not sell, often reluctant to fully liquidate even when I confirmed a trend reversal. For example, I bought $Cake at 0.4 and sold all the way to 19, then left 20% of my position until now. For instance, I got into the peak of the slot auction for the ICO of $Dot, then left a few thousand that are still gathering dust. All of this can be considered paying for the belief I once had.

However, since we believe that AI applications are one of the most important main lines by 2025, managing the positions between the leaders and other opportunities, as well as how to enter and exit reasonably, is the most important thing aside from selecting targets.

Currently, I plan to find within this wave:

1. The most fertile golden egg (platform/framework type)

2. The most capable of achieving Mass Adoption in the crypto circle (improving daily work-life productivity)

3. The Agent that can help me make the most money

4. The most likely way to break the circle and let Web2 come in and take over

These AI targets, as the main line, should not exceed 5 in total, and all are considered primary currency-based positions. They need to be carefully assessed before gradually increasing the weight of those positions. Then, by continuously capturing other Alpha (below 10M) and Beta (between 100M and 300M), and actively trading to increase the quantity of the main token, until the ecosystem is sufficiently mature and there are no other opportunities that can be easily understood.

Still using Defi Szn as an analogy, when it first started to build, it was a game of Swap and lending, which is also the cornerstone of Defi. After Uni and Aave stabilized, the next was $LINK and other Infra, followed by various exploitative attacks and nested structures, and then increasingly crowded fields that demanded innovative and pseudo-innovative ideas.

When we eventually reach a level where I can no longer understand the problems some projects need to solve without relying on third-party tools and racking my brains, it’s pretty much coming to an end. During this time, embracing various bubbles and continuously increasing the quantity of $Aave, $Uni, and $LINK, theoretically, when the bull market nears its end, I can reap the maximum value.

So during this pullback, I took profits on a large portion of the small/medium coins that performed well, and began to slowly add to a few larger coins (over 1B) through DCA. I also started looking at other opportunities below 10M and above 100M.

Currently, AI Agents (applications) are still in the early stages, and even Virtuals and Ai16z cannot be said to be firmly seated, just like early Ethereum always had challengers pop up. As for applications, it’s really dazzling to watch, every day feels like a treasure hunt. It has rekindled the joy I felt in the early days of Defi.