1. At the Pinnacle of Technology: Facing the ‘Wall of Speed’ When I first jumped into automated trading, I thought flashy TradingView scripts and technical indicators would bring me wealth. I deployed all sorts of strategies like Turtle and Sniper, sometimes recording high win rates, but the result was always a repeating pattern of “short profits and long losses.” Having my capital grinded away in sideways markets and getting liquidated in one-way downtrends made me realize something crucial: what matters more than technical indicators is the ‘physiology of the market.’
To execute more precise trades, I tried to copy institutional HFT (High-Frequency Trading) strategies. I even rented regional servers in Hong Kong and Japan, attempting to compete in the 0.001-second realm. However, no matter how much an individual optimizes their 60ms environment, it can never beat an institution’s 1ms. The split-second latency inside the exchange servers was a massive, insurmountable wall of despair for a retail trader.
Not a Cherry Blossom Ending, but a Liquidation Ending >>>>>>>>>>>>>>>>>>>>>>>>>>>
2. The Cruel Formula: ‘Retail Buy = Price Drop’ The truth I discovered while studying HFT was shocking. The thick buy/sell walls that shift dozens of times a second were mostly bait to trap retail traders.
My Hypothesis: “If the sell wall is thick, someone has started buying, so institutions will suppress the price. Let’s go short.” Real-world Result: The hypothesis was correct, but the market was far more cunning. Exchanges and institutions were looking right through all the data—exactly how much debt (leverage) retail traders took on and what positions they held—using ‘real-time unrealized PnL (Profit and Loss)’ data.
Ultimately, if retail goes long, institutions counter with shorts to push the price down. Only when retail can’t hold on anymore and dumps their volume do the institutions finally close the basement doors and pump the price. And what if retail holds on to the bitter end? Then the floor drops out, initiating an endless freefall straight to the earth’s core.
Instead of simply falling victim to this, I had a contrarian idea: why not actually generate profits within that malicious ‘vacuum wall’ created by the institutions? That’s how my own personal strategy, the ‘Vacuum Sniper Viper’, was born.
At the time, I had a lot of regrets because I couldn’t perfectly fine-tune the flow of unrealized PnL, the climax indicators, the balance of buy/sell walls, and the weightings based on the win/loss ratios of uptrends and downtrends. However, by piercing through the true nature of the market with this logic, I am sure that I will eventually be able to complete that powerful, definitive strike of the Viper in live trading one day, right?
3. The Identical DNA of Altcoins and Penny Stocks Altcoins and small-cap stocks (penny/junk stocks) share low market capitalization and low liquidity, making them extremely vulnerable to price manipulation.
Acceleration of the Drop: As the price collapses, the retail psychology of feeling it’s “cheap” grows stronger, but institutions use this to dump the price even more ruthlessly. Conditions for a Rebound: A technical rebound only occurs when there is Big Volume accompanied by a ‘Selling Climax’ where everyone throws in the towel in sheer terror. I felt in my bones that buying altcoins on leverage is practically reserving a “guaranteed liquidation.”
💡 Return to the Basics: Developing a BTC/ETH Liquidation Radar After years of trial and error, I decided to escape the swamp of altcoins and focus entirely on BTC (Bitcoin) and ETH (Ethereum), which are backed by massive liquidity. And currently, I am developing a ‘Liquidation Alert Radar Bot’ that detects other retail traders’ stop-losses and massive liquidations in real-time.
Core Mechanism: It collects global market Websocket data to analyze unrealized PnL, selling/buying climaxes, and the balance of buy/sell walls in real-time. Goal: While there is no such thing as a 100% win rate, the goal is to capture the exact moment when the crowd dumps in fear (when the retail shakeout is complete) and deliver a signal via Telegram.
I am currently accumulating data through a demo version. I will soon launch a guide on Telegram to raise awareness of the dangers of altcoins and to show how to counter-exploit institutional movements in the much safer BTC/ETH markets. Please look forward to it.
I hope my failures can be of help to many of you.
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