Dialogue Strategy Expert: Quantitative Strategy for Profiting, Mastering Smart Trading

Good afternoon, fren～

We will periodically invite senior industry big shots to guest in our AiCoin live broadcast room to discuss industry insights and explore investment opportunities, and today is no exception! Here is the QA recap of this live broadcast:

The theme of this live broadcast is “Quantitative Strategy for Profiting, Mastering Smart Trading” - When it comes to quantification, many frens may feel that it “sounds complicated”, but today’s guest will present the valuable content in a very down-to-earth manner.

Today we are especially honored to invite a heavyweight guest: he is one of the earliest “die-hard users” of AiCoin, and also a quantitative strategy influencer that many people follow in the dynamic square! The core of his quantitative strategy can be summed up in one word: “stable”, and many frens have started their journey into quantitative trading by following him.

Alright, our interview officially begins!

The first question, I want to trace back to the source with the teacher: You are a professional trader who has witnessed the growth of AiCoin and the entire crypto market step by step. I am particularly curious about how you first got involved with the crypto market? What opportunity led you to embark on the path of quantitative trading, often referred to as the “lazy person’s way to wealth”?

Blank Teacher: "The term ‘lazy person becoming rich’ is quite interesting, but in fact, quantification is about ‘working smarter’. I first got involved with Bitcoin because of ‘mining’ - back then, I thought this concept was very geeky, fresh, and fun. But what really made me settle down to do quantification was having had enough of the losses from emotional trading: I used to stay up all night staring at the market until my eyes were sore, and when I saw the market rise, I couldn’t help but FOMO in, only to see it drop right after I bought; then when I couldn’t hold on anymore and had to cut my losses, I would end up selling at the lowest point… I didn’t miss a single one of these pitfalls.

Later I realized that in the crypto market, which is subject to 24/7 fluctuations, where prices can rise or fall at any moment, it is not enough to rely on ‘feelings’ to survive and make money; one must depend on systems and discipline. And quantitative trading is the best tool to turn trading logic into ‘strict rules’ and enforce discipline.

At that time, AiCoin launched an arbitrage trading tool, and I became one of the first users – I experienced for the first time earning some ‘steady money’ without manual operation: watching the interest in my account slowly increase every day, which is 3-5 times higher than bank interest rates. Although it wasn’t much at first, my mindset was particularly relaxed. Since then, I have deeply utilized the strategy tools released by AiCoin and gradually summarized my experience, thus becoming a quantitative trader.

It turns out that behind every “stable” character, there has been a period of “instability”!

Speaking of volatility, the market has recently been “jumping up and down”, with both bulls and bears being equally affected. In your opinion, what opportunities are hidden in this highly volatile market that ordinary people are likely to overlook? What macro signals do you check every day?

Blank Teacher: "Volatility is indeed a risk, but for quantitative strategies, it is also a source of profit. In this market, we need to break out of the mindset of ‘only looking at rises and falls’ and pay more attention to ‘volatility’—the more it fluctuates, the more some strategies can ‘grind’ out returns.

For example, grid trading and arbitrage between spot and futures are particularly suitable for the current environment: grid trading is like ‘picking Gate’ during fluctuations; every time the market jumps back and forth, it makes a profit from the price difference. Recently, many friends using grid trading have earned steadily during this wave of fluctuating rise, and calling it a ‘bull market expert’ is not an exaggeration. Personally, I usually open grids for platform tokens, which are equivalent to ‘credit certificates’ of the exchange. As long as the platform does not have major issues, there is basically no significant risk, and it is highly likely to rise along with Bitcoin, which is much more stable than ordinary altcoins. However, I want to remind you: it is only advisable to choose platform tokens from the top three exchanges; those who understand the reasoning will understand.

As for the signals that I must watch every day, I mainly look at two layers: First, at the macro level: The Federal Reserve’s interest rate decisions and CPI data are still the key factors that determine the overall direction - they are like the market’s ‘money bag’; whether the Federal Reserve injects or withdraws money directly affects the amount of funds in the entire market. Second is the on-chain layer: for example, the inflow and outflow of funds for Bitcoin ETFs, and the stablecoin reserves of exchanges. This data serves as the most direct ‘microscope’ to observe the market sentiment; it can be easily found in the data module of AiCoin. Everyone can take a look at it regularly and try to find patterns.

From macro to on-chain, it’s all practical insights!

Based on your judgment just now, which “weapons” in your “strategy arsenal” are most handy and advantageous in the current environment? Could you share one or two strategy directions that you are currently focusing on or practicing?

Blank Teacher: "My strategy library has always emphasized ‘being able to adapt to the market’, and I will not stubbornly stick to one method. If I had to mention two directions, the first is the integration of ‘AI + quantitative’ — this is what I have spent the most effort exploring this year.

It’s no longer just about setting fixed parameters and forgetting about it; instead, it’s about letting the AI large model assist in ‘market watching’: it will determine whether the current market is ranging, rising, or falling, and then automatically switch to more suitable parameters for sub-strategies (like grid trading), effectively allowing the strategy to ‘learn’ to adapt to the market conditions. If you haven’t developed your own trading system yet, you can try the method of ‘AI assistance + manual monitoring + quantitative execution’; you might be pleasantly surprised.

The second is multi-strategy combination rotation. As the old saying goes, ‘Don’t put all your eggs in one basket.’ I won’t bet on a single strategy, but instead run multiple strategies that are not too ‘tied together’ at the same time — such as trend strategies, reversal Martingale strategies, and arbitrage strategies running together. This way, even if one strategy temporarily has no returns, another might be making money, ensuring that the capital curve remains as smooth as possible, which is also the essence of ‘seeking victory in stability.’

The indicators I posted earlier in the Indicator Strategy Square were tailored to the market at that time. Looking back now, the returns are definitely not as good as before, and they need to be adjusted according to the market. Currently, I am focusing on professional arbitrage, grid trading, DCA, and real-time indicator strategies: arbitrage accounts for 70% of the funds, while grid, DCA, and indicator strategies each account for 10%.

This is what I’ve been using the AiCoin automatic earning feature for, fully automated without having to monitor the market. Although the arbitrage profits aren’t high, it’s particularly stable, and I’ve been using it for over a year now.

These are some strategies I usually run, some profit and some loss, no need to rush, just wait patiently for the returns over time; this is a comparison of the recent returns of several strategies, allowing everyone to clearly see the advantages of the combination.

“AI + Quantitative” “Multi-strategy Combination”, this is definitely the cutting-edge direction of the future!

Speaking of your exclusive strategy, the subscription likes for your “small-cap Martingale strategy” in the community are particularly high. Can you reveal to us: what are the “profit principles” and “applicable scenarios” of this strategy? How does it capture opportunities to profit?

Blank Teacher: “This strategy was written last year, right at the beginning of the bull market, when everyone predicted that the coming year would see the start of a bull market. So I developed this strategy that leans towards bottom fishing. That’s right, its essence is somewhat similar to DCA, both are strategies suitable for the transition from bear to bull market — however, I must emphasize: all my shares are based on my own risk control system, and absolutely do not constitute investment advice. Everyone must assess based on their own situation.”

First, let’s talk about the principle of making money. The core actually lies in probability theory and capital management. In simple terms, it’s ‘buying more as prices drop’: buy a little more when the price falls slightly, and increase the amount bought a bit as well. This way, you can gradually lower the average holding cost. As long as the market experiences a slight rebound, the previous unrealized loss can basically be covered, and you can still earn a bit of profit.

Let’s talk about applicable scenarios: it is only suitable for ‘highly volatile but long-term bullish’ quality altcoins — such as those with real application scenarios, reliable teams, and potential coins outside the top 50 by market capitalization. This is because it requires volatility to trigger orders, while also relying on the attribute that the coin ‘won’t keep falling and can rise back in the long term’. Definitely do not use it on those ‘meme coins’ that have no substantial value and could go to zero at any moment, otherwise, your principal may very likely be lost.

In terms of actual performance, its goal is not to catch all fluctuations, but to seek a high win rate and high profit-loss ratio. When it was launched, the backtest win rate could reach 90%, but now everyone’s expectations for the bull market are nearing their peak, and the adaptability of this strategy has decreased significantly — this is a screenshot of the results from a one-month test at that time, starting with 300U and 10x leverage, and the returns were relatively stable.

Finally, there are many new frens in the live room who are just interested in quantification. Could you give them one key piece of advice? Also, please share what you think is the most important “pitfall guide”?

Blank Teacher: “A piece of advice: doing quantitative analysis is more like being an ‘engineer’; it relies on rigorous systems and strict discipline, rather than luck or high-stakes gambling. Don’t think that a ‘magical strategy’ will make you rich overnight; quantitative analysis is a slow endeavor, and stability is the priority.”

When it comes to the pitfall guide, everyone must remember: never blindly follow a strategy without fully understanding its risks, and definitely don’t invest large amounts of capital. First, practice on a demo account, conduct backtesting of the strategy yourself, and see how it performed in past markets; then run it with small amounts in real trading to feel its fluctuations and patterns, and once you’ve grasped it, gradually adjust.

Here’s a little trick: use the right strategy at the right time - for example, run a grid during a consolidation after a rise or fall; when there’s a drop of more than 30% and market sentiment is panic, try DCA (but it has to be during a bull market); arbitrage trading in a bull market may earn less, but it’s stable.

Remember, the market is always there; only those who survive have the right to see tomorrow’s opportunities!

Thanks again to Teacher Blank for his unreserved sharing today! From trading mindset to practical skills, from past pitfalls experience to future strategy directions, it was truly all valuable content, no fluff at all!

Our interview segment ends here~

The time is locked in for live broadcasts every Monday, Wednesday, and Thursday afternoon, accessible through the group chat on the left side of the PC client - Live.

This article only represents the author’s personal views and does not represent the position and views of this platform. This article is for informational sharing only and does not constitute any investment advice to anyone.