How Data-Driven Traders Profit in the Crypto Market

Benson is an experienced cryptocurrency trader who shares his unique trading strategies and market insights. Here are the main points of the conversation:

1. Benson's Trading Background

1. Started full-time cryptocurrency trading in 2019, experiencing the process from losses to profits.

2. Initially, the market direction was judged by observing the funding rates, which yielded good returns during the bull market of 2020-2021.

3. After the Federal Reserve raised interest rates in 2022, the existing trading strategies became ineffective, leading to the study of order book data and the development of the CoinKarma indicator.

2. Core Trading Strategies

1. Think about how to build a trading structure through a non-consensus approach to outperform the majority.

2. Contract trading is essentially a game of how to win over the majority, and Benson chooses to align with the interests of the main players to outperform other traders.

3. Developed the CoinKarma indicator to assess market liquidity by analyzing order book data.

3. CoinKarma Indicator Analysis

1. Overall LIQ(Overall Liquidity Status): Depict the liquidity status of the market and determine possible price reversal points.

2. CVD(Cumulative Trading Volume): By observing the strength of market orders, determine whether it is a sideways market or a trending market.

3. These indicators help traders find positions with a higher margin of safety during volatile market conditions.

4. Trading Experience Sharing

1. Avoid buying tokens like you would buy stocks, and focus on the long-term demand and potential of the project.

2. Timely take profit and stop loss, control leverage.

3. Adopt different operational strategies for different types of underlying assets.

4. Continuously monitor market changes and adjust trading strategies in a timely manner.

5. Market Insights

1. One-sided markets usually require continuous inflow of external funds, while ranging markets occupy the majority of the time.

2. Assess market conditions by observing BTC ETF fund inflows, CVD indicators from mainstream exchanges, and other metrics.

3. The optimism for projects like Solana stems from its technological advantages, community cohesion, and ability to rise from the ashes.

6. Risk Control and Self-Iteration

1. Establish the correct market perception and understand how the main players harvest liquidity by creating volatility.

2. Continuously learn and adapt to market changes to protect effective trading Alpha.

3. Limit the number of users to protect the effectiveness of trading strategies.

Overall, Benson emphasized the importance of building a trading system through a unique perspective and data-driven approach, as well as the necessity of continuous learning and adapting to market changes.