"CFA Cryptocurrency Gold Model" has taken 122 days from planning to production. It combines my personal insights on Web3.0 with the insights of many experienced traders. The content will be presented in multiple issues. The content is relatively dry/deep, so remember to collect it.
I currently do not have any other platforms. This series of content is original and first released on Binance Square.
🙂 Next, let’s get to the point. What is the Web3.0 golden triangle model and what is its role?
🔹The Web3.0 Golden Triangle Model is the model I use most often in transactions or when working in the Web3.0 industry. Its biggest function is to provide everyone with a complete logical guide when conducting transactions. This model can be used to split various currencies and transaction methods, helping us to quickly get started with them without lacking logical loopholes.
Teaching: We bring (cryptocurrency transactions) into our model. This is a general model. In order to make it easier for everyone to understand the meaning of the model, in actual use, you can (segment the results)
The first step is to understand the components of the Web3.0 Golden Triangle Model.
Top: Goals/Results
Waist: support point (we need multiple support points to support the target above)
Bottom: Arguments (arguments are used to prove the validity of supporting points. Usually, multiple arguments are needed to prove the validity of a supporting point)
😊Please write down the key points above. If possible, it will be more detailed if you draw them out with paper and pen. Now we have a basic understanding of the components of the golden triangle, so let's bring it into the transaction next.
Target: Cryptocurrency circle. Next, we need to find support points around cryptocurrency transactions.
Support points: I have sorted out three support points for now, trading goals, trading strategies, and trading opportunities.
Argument/demonstration:
① We need to clarify our trading goals. Of course, we can diversify them, such as short-term trading, long-term holding, break-even trading and contract hedging, to determine our trading goals.
② To prove that cryptocurrency trading requires trading strategies, we need to use trend trading methods, quantitative trading methods, arbitrage trading and news strategies, and other methods to prove that cryptocurrency trading does require the support of trading strategy theory.
③It proves that cryptocurrency transactions require trading opportunities. Some bigwigs use K-line analysis to analyze trend transactions and also seize the opportunity, including price fluctuations caused by emergencies in the cryptocurrency circle and market behaviors caused by market sentiment. This is enough to prove that trading opportunities are a strong support point in cryptocurrency transactions.
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Since the content is abstruse, deep and dry, I hope readers can put their own thinking into it. The argumentation part is simple here, but in actual use, the argumentation part needs to bring in a complete, operational and replicable solution to carry out the argumentation. You can master it and use it yourself to make your model effective.
Model inversion:
We first put the goal first and sorted out the components of the model from top to bottom. Then, in order to learn this model more intuitively, we work backwards.
Work backwards from the bottom up:
The first group: If you clearly define your trading goals before trading, whether it is short-term profit or long-term holding, or the transaction is just for hedging contracts, or you can liquidate the position when the transaction goal reaches 20%, wouldn’t it be easier to execute with a goal in mind?
The second group: If you study a lot of strategies before trading, such as trend trading, news trading, and quantitative robot trading, will you be able to trade like a duck in water?
The third group: If you understand the importance of trading timing through historical examples before trading, learn to analyze the best entry point through K-line, buy through unexpected events, or you study fundamental trading in depth, then you can come and go freely in trading.
At this point, I think many people will suddenly understand the mystery of this model. This model is just for teaching, and the content is not complete. In the practice process, you can create your own model according to your own (goals).
✍️Key points: First, the goal is deduced from top to bottom, and then a closed loop is formed from bottom to top.
Different goals have different supporting points and arguments. First, find the strong supporting points that belong to the goal.
The goals can be set as: (Rolling Trading Method) (xxK-line Analysis Method) (BNB) (ETC) (Altcoin) etc…
As mentioned at the beginning, this model can not only be used for analysis, but also for disassembly, to disassemble other people's trading methods. You can also set the target as a certain currency to analyze the currency's situation. Remember that every support point and argument in the model is real. Only when you fill in the market reality and transaction authenticity can it be effective. Otherwise, it will be a castle in the air and is not advisable.
If you have a weak understanding of the model, it is recommended to draw it with pen and paper, so it is easier to understand 😘
The "CFA Cryptocurrency Gold Model" is still being created and will be presented in multiple issues, so stay tuned😻
✍️Share your golden triangle drawing in the comment section!
