Trader Rocky's Investment Philosophy and Strategy Sharing

1. About Trader Rocky

Rocky is a co-founder of Blue Ocean Capital, focusing on Web3 secondary market investments. His trading background and strategy development process are as follows:

1. Trading Background:

• Served as a researcher at Changjiang Securities Research Institute.
• Entered the cryptocurrency industry full-time at the end of 2016
• Gained the first bucket of gold during the ICO period of 2016-2017
• Engaged in blockchain vertical media and investment incubation business from 2018 to 2021
• Founded Blue Ocean Capital in 2022, currently with a net worth of 4.5 times.

2. Key experiences in forming trading strategies:

• High returns for newcomers to the market: In 2016, a friend helped me invest in cryptocurrency, yielding a 4x return in two months, which was in stark contrast to the A-shares. This prompted Rocky to delve deeper into cryptocurrency and fully commit to the industry in 2016.

• Loss of 100 BTC in the "3·12" incident: On March 12, 2020, the market crashed, resulting in Rocky losing 100 Bitcoins. This experience led him to reflect and form the "Three No Principles": do not use leverage, do not trade contracts, do not borrow money to trade cryptocurrencies. He also began to establish an investment risk control system and transitioned from being a "technical trader" to a "value investor."

3. Existing Trading Strategies:

• Using the Alpha and Beta combination model, Alpha seeks high returns, while Beta is anchored to the BTC trend.
• Investment Framework: Top-down, from macro to micro analysis
• Capital scale: determined by the risk withdrawal that can be sustained.
• Expected returns: Mainly based on the judgment of the US dollar cycle
• Risk Control: includes position management, portfolio management, and baseline risk control.

2. Analysis of Rocky's Successful Cases

1. Render ($RNDR) investment case:

• Reason for Attention: Multicoin invests $30 million
• Investment Logic:
  1. The business model has a positive cash flow cycle
  2. Founder background strong ( OTOY founder, workaholic and geek )
  3. Communicating with the project team revealed additional potential ( that may release C-end GPU interfaces ).
• Investment time: around November 2022
• Investment cost: approximately $0.5

2. Kaspa ($KAS) investment case:

• Discovery Process: Finding new projects for idle mining machines
• Investment logic:
  1. Founder background strong ( Y God, DAG technology inventor )
  2. Israeli team, strong execution capability
  3. 100% mining, no pre-mining and no team reserve
• Investment method: primarily obtained through mining
• Investment returns: nearly 200 times

3. The Five Major Tracks That Rocky Is Optimistic About

1. AI: The enthusiasm for primary market investments remains strong.

2. RWA( Real World Assets ): A reflection of the globalization strategy of dollar assets similar to DeFi in 2020.

3. DePIN: The easiest scenario to introduce Web2 users into Web3.

4. BTC Ecosystem: Unlocking Dormant Assets to Bring Incremental Market

5. GameFi: analogous to the history of the internet development, is an important traffic diversion tool.

4. Investment Advice from Rocky

1. Do not touch leverage, contracts, or borrow money to trade cryptocurrencies.

2. Do not engage in high-frequency trading, study macro trends, sectors, and projects more.

3. Don't work in isolation, communicate more with industry professionals.

4. Do not invest in projects that you are unfamiliar with or do not understand.

5. Don't think about taking shortcuts or overtaking on a curve, stick to value investing.

5. Recommended Learning Resources by Rocky

1. Macroeconomic and cyclical related books:

• "Wave Motion Cycle Theory" ( Zhou Jintao )
• "Cycle" ( Hong Hao )
• "Manias, Panics, and Crashes: A History of Financial Crises" ( Kindleberger )
• "The Great Depression Diary" ( Ross )
• "Irrational Exuberance" ( Shiller )
• "Theoretical Evidence Analysis of Economic Cycles" ( Mankiw )

2. Recommended Twitter accounts to follow:

• Macro Analysis:@biancoresearch
• Bloomberg analysts: @matt_levine @elerianm @ritholtz

3. Project Research Tools:

• Messari Report
• Nansen's Smart Money data
• LunarCrush ( Market Sentiment Observation )
• TrendX_official ( AI-driven Web3 market heat tracking )
• Alphascan_xyz ( early Alpha project capture )