How to improve the hit rate through multi-indicator currency selection?
As a retail investor using some indicators to select coins, the purpose is to find two types of coins.
a. Currencies that are exposed when the dealer opens a position to increase or before the increase.
b. The dealer is very likely to select the currency to trade and open a position, but it has not been selected yet.
There are too many coins. The first thing to do is how to quickly narrow the target range, and at the same time, try to focus on category A.
First, we can first narrow the scope through the three factors of spot trading volume, circulating market capitalization, and the ratio of trading volume to market capitalization.
As shown in Figure 1, for example, using Binance’s trading volume as a reference, first make sure to choose a coin with a trading volume of more than 20 million U.S. dollars (the trading volume represents the level of fund activity, and there are many people who are fools. At the same time, you can guarantee the amount of money you buy) If it is relatively large, it is easy to get in and out) Secondly, according to your own trading preferences, determine the circulation market value range of the currency you want to trade. For example, your trading preference is between US$20 million and US$500 million in market value. Sort by yourself, compare and filter.
Then the remaining coins filtered out are sorted by the ratio of trading volume to circulating market capitalization, and then further filtered. For example, those with a ratio greater than 0.3 are retained. At this point we should be very close to the target range, probably less than 15.
Second, for the currencies within the final target range, observe the address rankings on the chain one by one, and check the top 15 currency holding addresses one by one to see if there are any that continue to buy coins from the exchange and put them on the chain. the address of.
Find some key points to pay attention to.
Third, among the remaining currencies, check the official Twitter Official Twitter one by one and focus on the active ones.
Fourth, search the remaining currencies on Twitter one by one to see if there is any actual good news and orders are called. Both Chinese and English Twitter will be counted, and related currencies will be excluded. If there are actual and sustained benefits related to the Official Twitter and the currencies that are called for orders at the same time, you can focus on it.
The fifth remaining currency worthy of attention may now be less than 5. Then proceed to the last step of deletion and checking, a. If there are coins with contracts, focus first on coins with large contract positions or those with contract positions that are increasing day by day or suddenly increasing sharply.
b. If there is no contract, focus first on coins with increased trading volume for multiple consecutive days.
c. If there are multiple coins that are similar to the above, give priority to whether it is a public chain, whether it is Eth or BTC's L2, and whether it is an AI-related track.
d. When Bitcoin eth falls, focus on not falling, especially those that can rise against the trend. In this way, there may be less than 4 targets left in the end.
Binance has seen many situations where tens of millions of dollars were not listed on the contract, and then they went crazy and pulled the market value to 300-500 million US dollars and were listed on the contract, so we cannot be completely biased against coins without contracts. After selecting the currency, it is time to determine the buying point. If you are strict about costs, you can buy it according to the rise and fall of the K-line. It is best to buy at the trough of the 5-minute K-line pin adjustment or the continuous upward movement of the 5-minute K-line. You can buy directly, or you can buy at the node where the BTC retracement pin is inserted.
If you have sufficient funds, you can buy the final target with an average amount.
Three major tokens in the SOL ecosystem that are worth considering investing in:
1:MNDE
First, Marinade (MNDE) is a staking optimization platform that helps investors make the most of SOL staking. Since Solana is a proof-of-stake network, its security is guaranteed by validators putting their native tokens at risk.
Therefore, staking SOL into the protocol helps improve the decentralization of the network while rewarding investors proportionately with their share of equity. Against this backdrop, Marinade aims to facilitate the staking experience and results through an automated system.
At press time, TVL was $1.75 billion. This represents 22 times the token’s market capitalization, indicating an oversold asset in DeFi.
2:RAY
Secondly, Raydium (RAY) is one of the most popular decentralized exchanges in the Solana ecosystem. Most Solana tokens are traded on Raydium, which includes the best meme coins in the ecosystem.
With a large share of total value locked and trading volume, RAY is an interesting token to consider investing in. The decentralized exchange has $260 million of the ecosystem’s $904 million in 24-hour trading volume, trades at $2.04, and has a market cap of $527 million.
3:JUP
Finally, Jupiter (JUP) is one of the new Solana tokens joining its growing list of innovative projects. At this point, Jupiter is a derivatives-focused platform that allows Solana speculators to trade perpetual contracts in a decentralized manner.
According to the CoinMarketCap index, the market capitalization is US$1.57 billion, ranking 66th. However, following a recent airdrop to early Solana investors, only 13.5% of its tokens are in circulation.
While Jupiter is a promising project in 2024, this suggests the timing is not ideal to buy JUP.
It has been observed that Solana is becoming a rich ecosystem with promising tokens and projects this year. Nonetheless, investors must learn how to identify the best Solana ecosystem tokens and their respective entry points to grow their capital.
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Mainly spot goods
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