Original | Odaily Planet Daily (@OdailyChina)
Author | Nan Zhi (@Assassin_Malvo)
Last week, after introducing the in-depth evaluation system, the stability of Copy Trading Accounts 1 and 2 significantly improved, beginning to provide sustained funding support for other test accounts. Furthermore, Copy Trading Account 6 achieved a nearly 5x increase in one week.
In this installment, the author will update the progress of each wallet, display the copy trading address tracking charts, and detail the upgrades to the in-depth evaluation system along with future plans.
Risk Warning: This system was launched on October 8th and has only been running for 28 days. While it has achieved certain results, objectively speaking, the data volume and controlled experiments are insufficient, and the rigor is limited. This is for readers' information only.
Funding Progress and Strategy Showcase
The funding status of each address as of November 4th, 17:30 (UTC+8) is shown below. The profit potential and growth curve vary significantly across accounts based on the style and strategy of the copied target. Notably, Copy Trading Account 6 achieved a nearly fivefold gain in one week under specific circumstances. For details, please refer to the next subsection.
This section will further elaborate on the specific copy trading strategies, showcasing the author's thought process.
The details of the tracked copy trading targets are shown in the figure below:
- The left column is the strategy column, with different settings based on the wallet's profitability, purchase frequency, and on-premises market (Pump.fun) profitability.
- The middle section shows the practical results and preliminary evaluation system labels.
- The right column shows labels based on the In-depth Evaluation System I, with the label categories as shown in the legend in the top right corner.
(Note: The rationale for the left column settings is detailed in "Diamond Hands, High Profit Ratio? What are the Winning Factors in Solana Meme Trading?" and "Meme Cultivation Manual: Reborn as a Diamond Hand (Part 2)". The right column is detailed in "Meme Cultivation Manual: Reborn as a Diamond Hand (Part 3)".)
Copy Trading Strategy Overview
- Copy Trading Accounts 1 and 2 are addresses selected early on for their low frequency, high profit ratio, and diamond hand behavior. Furthermore, addresses with high drawdowns were removed based on the guiding principles from Part 3. The results so far are acceptable: Account 1's profit rate increased from 725% to 908% in 6 days, and Account 2's increased from 84% to 138%.
- Copy Trading Account 5 is an extremely low-frequency (only 11 buy operations to date), high profit ratio, extreme diamond hand address. Because these addresses have historically successfully added positions at highs multiple times, they are the only addresses for which multiple purchases are enabled, and the single purchase amount has been reduced. However, due to the limited total number of transactions, no conclusions can yet be drawn regarding their impact on the system's profitability.
- Before the split, Wallet B (i.e., Account 7) purchased a certain token. Wallet B performed numerous profit-taking operations on this token, but after the split, Wallet B's operations were no longer copied. This resulted in unexpected gains and profits (accounting for about 50% of Account 6's total profit). Therefore, although Account 6 achieved a fivefold gain in a week, Accounts 6 and 7 should actually be combined with Account 2 for comparison. The combined weekly growth was 10.6 SOL (a 132.5% increase), still showing a certain advantage compared to Account 2's growth of 8.1 SOL.
- Test Accounts 1-6 are used to test addresses that have outstanding strengths but lack stability. They use ultra-small amounts to test their long-term purchasing ability. If an account gets liquidated (goes to zero), it is cleared and marked as unsuitable for copy trading.
Version Iteration
In-depth Evaluation System (I)
In Part 3, the author introduced the In-depth Evaluation System (I) to further analyze an address's ability to "buy at the bottom," the risk of losing money by "FOMOing at highs," the ability to achieve high returns with small capital, stop-loss style, and the degree of "diamond hands."
Last week, the system was further enhanced with two new sub-modules: "Copy Trading Effect Test" and "On-Premises (Pump.fun) Performance Evaluation." The complete evaluation results of the system are shown in the figure below.
The "Copy Trading Effect Test" is currently still relatively rudimentary. Its calculation method is: Total profit provided by GMGN ÷ Number of first-round transactions. The converted profit for each token is then summed to obtain the "Converted Profit" for each address.
(Number of first-round transactions = the number of transactions from the first buy to the first sell, sourced from GMGN - Address Data - Token Transaction Details. Transferring tokens is also considered a sell.)
The reason for adopting this calculation method is that the copy trading system mostly only copies the buy action once, so it's necessary to evaluate the profit change under this style. A small decrease or even an increase in the converted profit is the ideal scenario. This ideal scenario occurs because the high-profit tokens of the copied target are a result of "buying once after identifying an opportunity," while the high-loss tokens are caused by "multiple additions to the position."
The calculation method for the "On-Premises Performance Evaluation" is also currently quite straightforward. First, it statistics whether the token was purchased on the Pump.fun on-premises market. Then, the win rate and multiple are calculated based on the token's total profit and total cost. The purpose of this data is to evaluate whether to copy on-premises trades. If a situation arises where "on-premises participation rate" is too high + "on-premises win rate" is high + "on-premises multiple" is too low, then this address carries the risk of cutting (scamming) copy traders. In cases where the win rate is low and the profit ratio is not high, it indicates poor on-premises trading skills, and their on-premises trades should not be copied.
Future Outlook
The copy trading system still has many areas that need improvement. Those currently planned include:
