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ETH’s influence on ERC20 products like YFIInfluence on ERC20 Products ETH’s influence on ERC20 products like YFI can be seen in several ways: Liquidity: ETH’s large market capitalization and liquidity provide a foundation for ERC20 tokens like YFI to tap into, enabling efficient and reliable transactions. Smart Contract Interoperability: ETH’s presence ensures that smart contracts, including those for ERC20 tokens like YFI, can interact seamlessly with each other and with the broader Ethereum ecosystem. Developer Adoption: ETH’s widespread adoption and established developer ecosystem encourage the creation and development of new ERC20 tokens, including DeFi protocols like YFI, which in turn benefits from ETH’s infrastructure. In summary, ETH’s influence on ERC20 products like YFI is indirect yet significant, providing a stable and liquid foundation for the Ethereum ecosystem and enabling the development and growth of #DeFi protocols like #Yearn.finance.
Long
by Victor_Ledney
80/20 - The Pareto Principle Created by an economist in the 19th century, the Pareto Principle has found its way into all different areas of life and is still used to this day. The basic idea is that for many systems, 80% of the effects come from 20% of the causes. In other words, a small number of factors have a large impact on the results. This post will go into further depth on this principle and will also explain how this concept can be applied to trading in a number of ways, making for more efficient and effective use of your productivity, time, and energy. What is the Pareto Principle? This was developed during the 19th century by an Italian economist named Vilfredo Pareto. He noted during the course of his studies that 80% of the land in Italy belonged to about 20% of the population. The 80/20 ratio even became prevalent in his life, and he also noticed that around 20% of the pea pods in his garden yielded around 80% of the peas. This has been found to be true in key aspects of life and is even famously known as the '80/20 rule'. Other examples of this are that 80% of a company's sales are produced by 20% of their products or services, and 80% of news coverage is based on 20% of world events, etc. So how can this idea be applied in the trading world? 80/20: The Pareto Principle In Trading In trading, the Pareto Principle can be applied in several ways. There is a general understanding that in the markets, on average, around 80% of our profits come from around 20% of trades. Therefore, it is important to focus on making a small number of high-quality trades rather than a large number of low-quality trades. By doing this, you can achieve better results with less effort. It is very easy to get caught up in the day-to-day grind of monitoring the markets, placing trades, and managing positions. However, this can quickly consume more time than needed if you let it. Using an effective trading method that is also very easy to understand and implement will give you the mental clarity and time to focus 80% on money management and discipline (we will get to these points later) while only needing about 20% of your mental energy for analysing the markets and finding trades. A lot of traders never even get to this point because they are constantly trying to figure out how to make sense of their trading system due to their current system being unnecessarily complicated. Time Management The 80/20 rule can also be applied to time management in trading. One way to do this as a trader is to spend the most time optimising the 20% of activities that generate 80% of your results. For example, if you spend a lot of time analysing data and know that it has a big impact on your results, you may want to focus on making sure that you spend enough time doing this activity. On the other hand, if you find that you spend a lot of time on activities that don’t have a big impact on your results, you may want to cut back on these activities and focus on the ones that do. To apply the 80/20 rule in this way, it can be helpful to track how you spend your time and the results that you achieve from each activity. This will allow you to identify which 20% of your activities are the most productive and focus your efforts on these activities. By optimising your time management processes, you can use your time more effectively and free up more time to focus on the most important aspects of your trading, which will ultimately achieve better results. A popular misconception, especially among beginner traders, is that trading more and having high activity in the markets is good, which is in fact the opposite. Having high activity in the markets is not only potentially costly due to the transaction costs you need to pay your broker or exchange provider, but high activity in the markets can also cause the trader to overtrade, which leads to the trader taking many trade setups to the extent that he or she loses their market edge. That's due to the trader doing less research on each position and getting clouded judgement as a result of too much screen time. While there is no exact number for how much time you should spend trading, the 80/20 rule can be a helpful guide. For example, if you want to cut back on your trading work-life balance, you may want to focus on only trading during the 20% of the day that is most active. This approach can help you effectively manage your time and focus your efforts on the most important part of the trading process. By only trading for a few hours each day, you can free up more time to focus on other aspects of your life. Less is More, More is Less Another way to apply the Pareto Principle to trading, for example, in Forex trading, is to focus on the 20% of currency pairs that generate 80% of the results. This means that you would only trade a few select currency pairs rather than trying to trade all of them. There are many forex pairs to choose from, and unfortunately, traders make the mistake of trying to trade too many pairs instead of choosing a handful of pairs at most to learn and really get familiar with those pairs as much as possible. Consistency in trading comes from consistent trial and error with the same few products over and over again, and this is very difficult to do if you decide to trade random pairs constantly. Another example of applying the 80/20 rule when choosing your assets is to focus on the 20% of assets that are most correlated with your trading strategy. For example, if you have a long-term trend-following strategy, you may want to focus on pairs that have a strong historical correlation with long-term trends. The Pareto Principle is helpful for many traders who want to improve their trading performance. There are many other ways to apply it to trading. The important thing is to find the trading method that works best for you and your own trading style. Here are some simple examples of how you can use the Pareto Rule in trading: Trending Markets Occur Roughly Only 20% of the Time Strong market trends tend to occur slightly more than 20% of the time, leaving the markets moving sideways nearly 80% of the time. If you are a trend trader, it is very important to know and understand this, as you will adjust your strategy and manage your risks to mitigate that 80%, capitalising on the 20% trend period where (hopefully) you can generate more profits than losses from fewer trades. Knowing and understanding this will also help you not force trades that aren't there. One of the main reasons why traders (especially trend traders) lose money is that they lose patience and trade looking for a big move to happen while the market is just consolidating sideways and not doing anything. 80% Losses 20% Wins That's right. What if I told you that you can be profitable by winning only 20% of your trades and going through times where you can experience at least five losing trades in a row? You are probably reading this, and when I say it is possible, you do not believe me (especially if you are new to trading), and I completely understand (don't worry, there will be proof of this). Another area where the 80/20 rule can be applied in trading is risk and money management. Unfortunately, not enough traders understand how important risk and money management are in trading and that you must have a strict and disciplined approach to them. Trading is not about just being right or wrong; it is about how much money you take from the market when you are right and how much money you give back to the market when you are wrong. As mentioned previously above, around 80% of our profits come from around 20% of trades, so when you really think about it, this should not sound so surprising to you. Still don't believe me? No worries! Let's see together that you can be right only 20% of the time and still make money. As you can see above, there was still a 4.83% increase in account balance after only two trades were won out of ten. The art of trading is to run your profits and cut your losses, hence why the 80/20 rule works if you use it to your advantage. 80% Psychology 20% Trading Method This is another example of the 80/20 principle. You should spend 80% of your time and energy on learning psychological control and capital management skills. For the remaining 20%, you can spend it on chart analysis and trading. If you trust and persevere with this, you will see significant changes in the way you trade. You will feel more comfortable, more confident, and safer, and ultimately see more consistency in your trading. Many traders, unfortunately, never realise this. The reason is that they go all in trying to find a 'holy grail' strategy that will help them earn riches quickly and easily. And if the current method does not help them earn money, they will find another method, and the never-ending circle just keeps repeating until the trader quits for good. The Pareto Principle is a powerful tool that can be used in many different areas of trading. Focus your energy and mind on the things that earn you money (the 20%, not the other 80%). It is great to work hard, but you must also work smart. What you need is a simple trading strategy and method. This is to eliminate the emotional effects as much as possible by not spending too much time in front of your screen. By applying the 80/20 rule to your trading skills, strategy, risk management, asset selection, and time management, you can drastically improve your trading performance and achieve better results. BluetonaFX
Education
by BluetonaFX
2
May Great Things Happen to $HYDRA(HYDRAGON) this year!This is a technical analysis of a Bullish Idea of what i expect EURONEXT:HYDRA “HYDRAGON” to do on the weekly chart. Hydra Boasts an amazing current 32% -37% Staking APR and will adjust to keep incentives profitable while never falling below 20% staking APR. Only Time will tell if this scenario plays out, but with companies like LockTrip building/supporting this blockchain i feel this will playout well. Recommend a staggered entry for longterm.
Long
by LegitCrypto
2
420 @ 4/20I have been extremely busy the past few weeks and have not been able to post very many updates. While I missed out on the last bull push higher, I'm back being bearish as inflation continues to soar and bonds continue to get crushed. Jan 20 was the last time Netflix reported earnings and the stock dropped 25% in the after hours. The following days spy lost an additional 5%. Coincidentally, a 5% drop in SPY today would close us at 420 on 4/20. All eyes on TSLA who also coincidentally picked 4/20 as their earnings date.
AMEX:SPYShort
by SPYvsGME
3
CADJPY Short Potential Kings Crown PatternCADJPY: Potential Kings Crown Pattern. CAD currency is impacted primarily by oil prices. JPY- Safehaven Yesterday OPEC ( Organization of the Petroleum Exporting Countries) Stated 2021 forecast OECD stocks to be 70 million barrels below average, relative to 20 million barrels below average in the previous estimate. Throughout the second half of 2021, OPEC+ expects commercial oil stocks to dip below the 2015-2019 level Other News Events Today there are Financial meetings in Canada Tomorrow Core Retail Sales Numbers will be released at 8:30am If these numbers come in below expectations, there could be a negative impact on the CAD currency pairs. Technicals: Daily B Boundary has formed and price gave a shallow retracement. Price could not break through the daily resistance level ( Red) at 88.200, but this move up to retest the resistance zone, created a higher high. After the rejection off of the 88.200 level, price pushed back down to the 23.6 level, which took out the previous low. Price rejected off the 23.6 level and is headed back to retest the 4hr resistance level ( purple). If this 4hr resistance level holds and the price breaks the trendline on the 1hr chart, we could see the price move down to the Daily 38.2 level to complete the Kings Crown Pattern. ** NOTE: Price could move all the way back up to the Daily resistance zone before making its move down. If the price breaks the Daily resistance level, I will re-evaluate at the 1.18/1.27 extension level for a possible 80/20 play.** Always remember to follow the rules of your trading plan.
Short
by TheForexTraderoom
OvOa Token: Preparation to the next buyback at uniswapA techinical and fundamental bullish analysis of TheOvORide series A on uniswap: info.uniswap.org Both good buying pressure and The next buyback schedulled to December 5th Its hard to say there is no good spot to buy that tokens because both fundamentals and technicals are in ouw side. More info about the ovoa token can be found in andr3.gitbook.io Why It's different: Standard DeFi projects get their profits from fees, liquidity services, lending, borrowing, or plain ponziness. OvO gets profit from High-Frequency Trading and Fee Rebate-Farming from the crypto derivative exchange Bybit. Where is the Value: I believe that for anyone to win, somebody else needs to lose. With several hundreds of new DeFi projects around, it's close to a gamble to join a pure ponzi scheme or a fundamentally sounded project. The money-losing side that gives us the consistent alpha are the ETH/USD traders and algorithms that make mistakes. 95% of traders end up losing money and 99% of traders pay fees to the exchange. My market making algorithm capitalizes on both. Ofering liquidity services to the exchange and receiving 0.05% of our trading volume back. Each new buy of OvOa in ETH on Uniswap generates three simple forces: -> 10% price increase that rewards investors that entered before and hold the token ->45% pooled tokens that increase depth and liquidity ->45% ETH sent to Market-Maker Bot on Bybit. Every 10 days, the Bybit's Acc. buyback the OvOa tokens directly from the Uniswap pool. This increases the token price as a ratio of the bot's performance. Why it's good for the dev/b] I don't think fee rebate for market-making gonna last forever (Binance doesn't offer it, Deribit already ended it) so it's a matter of time until this consistent way of making funds comes to an end. I want to get the maximum value I can while this profit-making window exists, so I opened the bot capital to investors to stake me in exchange for equity of 70% of the bots profit. The tokenization of the trading allows me to protect the intellectual property of the trading logic and indicators while allowing multiple investors to enter and exit with minimum bureaucracy. Why it's good for the investor The tokenization mitigates the risk of full custody, as you are free to increase or decrease exposure to the bot simply by buying or selling the token on Uniswap The market-making nature of the bot supersystem creates a predictable and steady income. The Token will get value even if everyone decides to dump it. The system is antifragile as any sell creates another opportunity window for getting cheaper tokens. The risk-reward of the market-making bot is better than API bots as I can have a better management system.
OLong
by The_Bitmex_Scalper
Ethereum 2.0Ethereum 2.0 is ready to launch Quantstamp has completed an audit (decrypt.co) for Teku, an Ethereum 2.0 client. They noted that the quality of the code is "excellent." So we can expect a partial launch this year. The full deployment of Ethereum 2.0 will take place in three phases: 0, 1, and 2. ~ November 2020: transition to PoS without smart contracts; ~ 2021: launch of sharing, also without smart contracts; ~ 2022: New virtual machine (EVM) for running smart contracts and processing parallel transactions (sharding). LINK is as far ahead in the oracular segment as ETH in the smart contract space and BTC as digital gold. To understand the importance of oracles, imagine this diagram: • Blockchain - a computer not connected to the Internet; • Ethereum - the operating system in the computer; • Chainlink - LAN cable that connects your computer to the Internet. Best regards EXCAVO
COINBASE:ETHUSD
by EXCAVO
13
80-20 strategy from Street Smarts ; Short NZDUSD This is a strategy from the book, 'Streetsmarts' developed by Taylor and adopted by Larry Connors For sell signals on NZDUSD: 1. Y'days high is signal for short when market opened in bottom 20% daily range and closed in upper 20% range ( Fri) 2. Today the market must trade at least 5-15 pips higher than yesterday's high 3. An entry sell stop is placed at 2 ticks below yesterdays high, with stop above todays high for a lo risk trade ( but low probability = respecting trader's equation that low probability corresponds with low risk trades) 4. trail stop loss as moves into profit, This is a day trade only....
Short
by Aussie-scalper