Reject anxiety, make good use of TrendX, and become smart money

TrendX
2024-03-27 15:40:19
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This article aims to explore the value logic of strategy tools, using the AI trading platform TrendX, which recently completed a $3 million financing round, as an example to discuss the use of strategy tools.

Author: TrendX

The arrival of a bull market means another round of wealth myths will emerge in the industry, indicating that players involved will experience more wealth effects and increasing opportunities to make money. However, not everyone can seize opportunities during a bull market; only a small number of savvy players can maximize their returns, while ordinary individuals in the industry may face the risk of losses if they are not careful. Each bull market brings new narratives and strategies. How can one choose good tools and strategies to seize the precious bull market cycle and capture every bit of profit? This is something all investors should pay attention to. This article aims to explore the value logic of strategy tools, using the AI trading platform TrendX, which recently completed a $3 million funding round, as an example to discuss the use of strategy tools.

Higher Uncertainty in Bull Market Cycles

The start of the bull market in the cryptocurrency space was marked by Bitcoin's approval for an ETF. In this bull market, various narratives have emerged, including the BTC ecosystem, BTC Layer 2, ETH Cancun upgrade, ETH Layer 2, along with the Solana ecosystem, DePIN, AI, and MEME collectively exploding. Countless hot topics bring countless opportunities; as an investor, seizing just one or two key opportunities can lead to a turnaround and achieve financial freedom.

The multitude of hot topics creates opportunities for users but also somewhat "kidnaps" investors' attention. An investor can obtain several, or even dozens, of so-called "wealth codes" from KOL tweets, various private community groups, and friend recommendations. The infinite hot topics and limited attention, along with even more limited resources, create a sharp contradiction.

Some investors hesitate, planning to observe further to find focused opportunities, but often miss the best entry timing; others choose to cover as many hot topics as possible, but this often results in excessive capital dispersion, likely leading to a situation where gains and losses offset each other, ultimately resulting in no profit.

In the process of investing during a bull market, missing out can lead to more negative emotional feedback than actual losses, and over time, this can erode confidence in one’s investment approach, ultimately resulting in a wasted bull market.

Moreover, while some investors may choose high-quality paid groups as references for hot topic investments, there are currently many private paid groups built around various Smart Money. However, effectively screening these paid groups is challenging, and high entry fees often deter many. Currently, core groups focused on spot trading typically charge around $300-500 per month, while VIP groups for futures contracts, which are more sensitive to price indicators, generally charge around $2000 per quarter. High costs hinder many investors, but it does not mean that those who can afford the fees and join core groups will achieve the expected returns.

More importantly, the provision of information is also closely related to execution power.

As a borderless product, cryptocurrency projects and funds are spread across the globe, and for players in a single time zone, sitting in front of a computer for 24 hours to trade is unrealistic. For example, East Asia and the United States are exactly 12 hours apart; when East Asian players are asleep, Americans are just starting their workday, and the corresponding market activity begins to pick up. Although smart money may timely disseminate relevant trading signals in communities, by the time you wake up the next day, the signals may have become obsolete due to timeliness issues.

On one hand, there is a flood of useless information, and on the other hand, the exorbitant cost of obtaining accurate information, compounded by some communities intentionally guiding users to invest in their own projects. Investors, caught in information anxiety, can easily become cash cows for other information providers during a bull market.

How can one avoid the above situations? People can deceive, but code cannot.

Strategy Tools Built on Code are More Reliable

Compared to subjective judgments from people, strategy tools and smart money tracking built on code are more reliable. TrendX excels in this area. The platform records detailed market information for 16,033 projects and has shared information with 43,569 Twitter KOLs, identifying and tracking 21,631 smart money addresses. It currently possesses a massive database of TB-level data, which plays a crucial role in building smart money and strategy tools.

Data plays an important role in web3. Through data analysis and mining, one can discover the trends and patterns inherent in the web3 industry, providing a basis and guidance for decision-making. Data can also be used for predictive analysis, helping us to prepare plans. Data is the oil and gold of the modern era.

However, data itself does not equal knowledge, let alone wisdom. Only by effectively utilizing data can it become a powerful tool for investment profit rather than being overwhelmed by vast amounts of data.

Currently, TrendX has conducted an index-based organization of the emotional fundamentals and discussion heat that are often overlooked and difficult to quantify in the industry: based on AI large language models, it analyzes and tracks Twitter sentiment, including the number of mentions by KOLs, the amplitude of changes over time, how many KOLs mentioned it, and the price changes of tokens after being mentioned, presenting this in an intelligently sorted manner to allow users to more intuitively perceive the correlation between market sentiment changes and token prices. After several rounds of testing, TrendX has achieved effective feedback between sentiment changes and token price trends; projects with significant sentiment data fluctuations are likely to experience substantial price volatility within the next two to three days.

With this feature, those who enjoy swing trading and yield farming can easily bypass the complex information barriers to find the most core investment targets.

In addition to sentiment indicator tracking, TrendX also has a smart money address tracking feature. Tracking smart money first requires discovering and identifying it. If users were to do this themselves, it would require considerable effort and have a high threshold. However, TrendX streamlines this process for users. As mentioned earlier, TrendX has already identified and tracked over 20,000 smart money addresses, and by monitoring the trading and turnover of whale and smart money addresses, it can effectively capture the movement of market leading funds.

There is a saying: "Dance with the dealer." In the duel between dealers and retail investors, retail investors often find it hard to gain an advantage; however, if users follow the actions of the dealers, they can also profit during the dealer's lifting process.

Combining smart money tracking with sentiment indicator tracking can effectively target the vast majority of projects currently on the market.

It is precisely because of the different dimensions of data analysis and integration that TrendX can provide investment decision data from various angles. But this is still far from enough.

Utilizing Strategy Tools and AI Effectively

TrendX integrates its smart money tracking feature with its unique project sentiment indicators, on-chain data, and advanced candlestick technical indicators to launch AlphaSquare.

AlphaSquare is a deeper exploration of the smart money tracking feature; it no longer simply shows users what smart money exists but combines it with other factors to create different strategies with varying focuses through different parameter settings, catering to traders with different styles and needs for trading different categories of tokens.

While it sounds simple, the ability to integrate and ensure reliability depends on the platform's own breadth and depth of data construction. It can be said that TrendX's prior internal development allows it to timely launch AlphaSquare during a bull market.

In simple terms, the unique product features of Alpha Square are as follows:

  1. Multi-factor Strategy: Alpha Square combines various parameter indicators to provide users with precise and efficient investment signals.
  2. Real-time Push: Strategy signals can be pushed in real-time, providing 24/7 updates on market dynamics, ensuring no investment opportunities are missed.
  3. Backtesting Analysis: It offers strategy backtesting functionality to help users evaluate the effectiveness of strategies, aiding in optimizing and adjusting investment strategies to improve return on investment.

The market changes during a bull market are highly uncertain, with many inherent risks associated with it. Even minor market adjustments can trigger chain reactions, instantly reversing your bull market profits. Additionally, during a bull market, various narratives and sector heats differ. Therefore, choosing the right strategy has a direct relationship with the final profit. Different signal settings can provide users with more options.

Currently, Alpha Square has derived 10 strategies, which have undergone thorough gray testing and will be gradually launched in the near future. These include super smart money signals suitable for general investment strategies, smart money + KOL overlay signals that analyze smart money addresses and KOL selection ideas, as well as smart money + hot sector signals focused on different sectors, among others.

Furthermore, in the upcoming updates of AlphaSquare, a strategy square feature will be launched: users can customize strategies, and the strategy square module will gather professional investors' strategy sharing and investment experience sharing, not only for mutual reference and learning among users but also to easily grasp market trends.

This feature can be regarded as TrendX's true ambitious project. Just like YouTubers contributing exciting content on YouTube and creators of various data charts on Dune, the real prosperity of the platform often comes from the users themselves. The platform sets up the framework, providing strategy guidance and searching for quality Alpha while giving users a larger stage to continuously optimize and refine existing strategies through collective brainstorming between the official team and users, and to explore new strategies with innovative dimensions.

On one hand, this ensures that strategies remain in a state of self-iteration, making them consistently effective and increasingly precise.

On the other hand, teaching a person to fish is better than giving them a fish; every business in the cryptocurrency industry begins with diligent and comprehensive research on potential investments and corresponding strategies. Simply relying on signals cannot promote personal growth; only by understanding strategies while using them and creating strategies based on that understanding can ordinary investors transform into smart money.

Conclusion

In summary, during a bull market, using the right strategy tools can help you capture more profits in the investment process, and using TrendX's AlphaSquare feature not only makes your investment and profit process simpler and more efficient but also helps you grow into new smart money. This may be the greatest gain for an individual during a bull market.

ChainCatcher reminds readers to view blockchain rationally, enhance risk awareness, and be cautious of various virtual token issuances and speculations. All content on this site is solely market information or related party opinions, and does not constitute any form of investment advice. If you find sensitive information in the content, please click "Report", and we will handle it promptly.
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