Put together a massive thread that covers all the tricks/tips I've learned to become profitable trading low caps
I've hit countless 100-1000x's using some of these strategies
Let's take a look:
1) Buying dips using 40%/60%/80-90% strategy:
The 40% strat:
- Coins with high volume/narrative/constant ATH retests don't often reach the 60% pullback
- Dips become shallower when the coin begins to go parabolic (25-35%)
- When dips get to less than 20%, blow off the top soon
2) Buying dips 40% strat P2:
- Holders usually go parabolic during this phase
- Check Twitter Cashtags, few posts a minute gives you a good idea
- Once the blow off happens, thats when you get your first 60% pullback
- That first 60% pullback should be bought (2-3x+ follows)
3) Buying dips 60% strat:
- 60% pullback is the pattern you will see the most
- Aligns with the .618 Fib retrace + the Golden Pocket (.618-.65)
- Works on nearly every coin
- Volume must follow to back up the retrace
- You buy the first 60%, 2/3rd are a lot more risky
4) Buying dips 60% strat P2:
- Works on fresh launches, if it isn't doing the 40%- that first 60% pullback likely sends it to ATH's and beyond
- Can go as deep as 65%, if the 60% fails you'll be looking at a 80-90% retrace
- Highest strike rate when it has confluence w/prev ath
5) Buying dips 80-90% strat:
- First demand area forms after launch (OB) - Price gravitates towards it
- Usually get ample time to buy/retests as token is deemed "dead"
- Buy volume has to stay consistent
- Distribution gets better
- Higher risk- betting on the team + community
6) Buying dips 80-90% strat P2:
- Stick to LTFs when drawing the demand area (1s/1m/5m)
- Rounded bottoms form- invalidation is easier (below OB/bottom of the range)
- Usually comes from a heavily sniped launch + some type of FUD
- Betting on the team to deliver
7) Buying dips 80-90% strat P3: Understanding it:
- Insiders/Snipers/Twitter runs it up first
- Large holders dump + FUD
- Community stays strong, holders increase
- Snipers out - Less holders with 2%+ of supply (needed)
- Devs ship
- People who TP'd on initial run chase again
8) How to play launches:
Types of launches: 1) Presale launch 2) Fair launch
Let's break down the price action + how to trade them below
9) Trading presale launches:
- Never ape the first candle unless you're sniping
- Small window to exit (1-2hrs)
- Don't knife catch - wait until it forms a range below listing price
- Track presale wallets
- Entry: Buy range lows/ Buy breakout retest
- Exit: TP Post listing high
10) Trading fair launches:
- Fresh narrative + volume - latter price action
- Extremely shallow pullbacks until parabola/trendline breaks
- Once trend breaks- first 60% pullback happens
- Chasing really only works under 300k mcap
- Buying first 60% pullback is a safer bet
11) Trading fair launches P2:
Two different types of price action 1) Latter price action (Volume + Hype + Narrative) 2) Consolidation/Sideways before expansion (Low holders + No cashtags + No tweets + Small community)
Latter PA is easier to trade - Sideways is a gamble
12) Trading fair launches P3:
Consolidation price action:
- If token launch doesn't go well (latter) teams dip
- Better to bet on sideways tokens that aren't a fork/late narrative token
- Between 20-50k mcap
- New narratives: Longer holdtime
- Recycled: Dump after an hour or 2
If your token is going up, flipping each mcap is a good sign it will move to the next target
If your token can't hold previous mcap resis, take profits
14) Marketcap support/resis P2:
- 1m is the main hurdle to get over
- 2-3m (depends on conditions) is where more hyped coins temp top
- 10m is usually the blow off area
- Clean 10m flip -> 20-30 follows
- Clean 30m flip -> Narrative leader and 100-200m+
15) Marketcap support/resis P3:
- If your coin fails to gain previous mcap support, take profits/dump bag
- The 3m-1m mcap dip is around a 60% pullback- good place to buy if you're targeting 10m
- Coins generally touch 12m-> flipping 10m hard easy road to 30m
- Use resis for TPs
16) Marketcap support/resis P4:
- Narrative leaders can pretty easily go to 20-30m
- Forks/Beta plays trade about 10% to the mcap of the leader (30m leader-> 3m mcap beta play)
- Any beta that runs above the 10% mark is rare
- Use the 10% idea to find TPs for beta plays
17) Sizing your trades:
- 0-50k: $50-$250
- 50-150k: $250-$500
- 150-500k: $500-$1000
- 500-1m: $1000-$2000
- 1m-3m: $2000-$5000
- 10m+ up to you
0-50k is incredibly risky- .1-.2 gets you 1-3% of the supply
1m+ is a bit "safer" as in- Proof of concept+ Community + Liquidity
18) Sizing your trades P2:
- Sizing also comes down to liq/mcap ratio. Coins launch with a 10-20% liq/mcap ratio (100k liq/1m mcap)
- Sizing at 20-50k: Clip in, dont 1 buy it. Attention on wallet + people will use you for exit liq
- Use large sells to enter / Large buys to exit
19) Trading the blowoff (above 100m)
- You'll usually get a blow off above 150-200m
- 100m then acts as support
- If 100m holds, expect the blow off high to be taken above
- Clear 200m+ -> 500m- 1b next target
- Can't clear 200m-> 100m hits again
- Lose 500m-> back to 200m
20) Tax vs no tax tokens:
- Memes with 1/1 or 2/2 tax don't nearly go as high with 0/0
- Memes with tax die around 2-3m
- Memes with no tax + narrative sky is the limit (Currently 20-30m is top)
- Coins w/product + taxes is ok, as long as user metrics are healthy
21) What type of shitcoin trader are u?
- Sniper
- Pullback trader
- Consolidation->Expansion trader
- Sniping is competitive + expensive for someone w/ a low bankroll
- Pullback trading w/ the 40/60/90 strat is easier, invalidation + targets set
- Consolidation- Buys sideways
22) Putting everything together
The ultimate strategy is the 40-60% pullback method, combine it with:
- Prev ATH support/resis
- Mcap support/resis
- Trendlines
- Fibs
- Narrative
- Leader or beta play?
- Cashtag research
- Holders increasing
- Volume
- Sizing
+ more
23) Here are some additional threads ive written that you may find helpful:
Here are a few different ways you can find new launches so you aren't buying late/being exit liquidity:
Using Bots:
- @FullMetalTools offers 5+ TG channels that ping early CAs based on an algo they created
- @alpha_gardeners pings new pairs, locked pairs, bullish deployer pairs. smart money etc
- @LaelapsBot - pings coins based on certain criteria you set
Plenty more out there
Using Dextools/Dexscreener/Dexview: New pairs/trending
- Dextools trending has a relatively high hit rate, you can also check for new deployments
- Dexview new pairs fires off new pairs. different coins than Dextools
- Dexscreener: New pairs but you can filter accordingly
Quick mini thread on my approach to buying low caps from a chart perspective:
- Never buy a parabolic coin with over a 250k+ market cap
- Most coins blow off around 250-500k market
cap. You'll get around a 40-60% drop then a
consolidation period/spring
- If you want to buy a parabolic coin, it's best to snipe sub 50k market cap or on the second leg after the consolidation period/spring
- Around the 250-500k mark, early investors are up 25-50x and it's always a good time for them to take profit. Don't be their exit liquidity
- Problem is, after the initial 250-500k run-up, most coins don't have their second chance for new highs. The project is already dead
- This is where it comes to narrative trading(see pinned). The coins that go for the second leg are pumped by narrative + decent shillers
🍞Thread on finding low cap gems and not buying scams🍞
As someone who’s been rugged countless times and made a ton off low caps, figured I’d share some useful tips/tools I’ve used over the years
Let’s dig in:
1) Narratives:
- What’s the narrative?
- Does the narrative have an expiration date?
- Is the narrative sustainable?
- Is this narrative forced? If so, why are they forcing it?
- Who’s pushing the narrative? Is it your fave CT influencer or does the narrative sell itself
2) Narratives P2:
Narratives with an expiration date often pick up bid fairly quickly
This means I should sell the day of the expiration right? Yes/no
People will front run the expiration dump and people will front run that dump
My Twitter account is stagnant/ dropping, most likely because I post less alpha/ do more shitposting. But I’m generally enjoying my time more.
I’m a pretty simple trader and have been around for a long time
I’ll share some things I’ve learned over the years trading this PA 👇🏼
No particular order of importance:
- ABC ( Always be closing ), often times you think you catch a runner but we are ranging
- Diagonal trendline breaks aren’t as profitable/powerful in a ranging environment
- Strive for 2-5% moves
- Set multiple profit takes
- Hard stops suck
- If you get stopped out, evaluate why and don’t immediately enter similar position
- Equal lows/ highs don’t get taken as much due to lack of liquidity
- Sometimes the best trade is no trade
- Wait for positions to come to you, don’t chase
- Size down significantly on alts