6 prompts for neural networks used by a top trader: my breakdown of the strategy
The crypto community is actively discussing a set of six prompts that, according to a trader with over 200,000 followers, help him make trading decisions. As an analyst, I have carefully studied this collection and prepared a detailed breakdown of each tool. Let me clarify right away: neural networks are a powerful assistant, but not a panacea. The key to success lies in the competent interpretation of their responses.
Risk/Reward: The Foundation of Any Trade
The first prompt forces the neural network to break down a potential trade into key parameters: entry point, stop-loss level, and target take-profit zone. This is a basic step that many ignore. Automating this stage instills discipline and filters out obviously unprofitable scenarios where the risk is not justified by the expected return.
Macro Overview: A Bird's-Eye View
The second prompt shifts the focus from the chart of a specific coin to the global economy. It asks to assess the impact of key macro factors: interest rates, inflation, and the strength of the US dollar. In periods when the market moves not based on technical levels but in response to Fed news, such analysis becomes critically important.
Liquidity Map: Hunting for Stops
The third prompt aims to identify zones of liquidity concentration—stop orders of retail traders and large institutional orders. The price often gravitates toward these levels. Understanding this "map" allows not only to anticipate movement but also to avoid getting caught in a mass triggering of one's own stops.
Correlation Matrix: Hidden Portfolio Risks
The fourth prompt analyzes how closely the assets in a portfolio are related. If several positions move in sync, diversification is merely an illusion. The neural network helps uncover these hidden connections and assess real, rather than imaginary, diversification. This is a direct path to managing concentrated risk.
On-Chain Signals: Eyes on the Blockchain
The fifth prompt uses blockchain data—transaction history and wallet behavior. It looks for patterns of accumulation (large players increasing positions) or distribution (they are unloading assets). Such signals often precede price movements and serve as an excellent complement to technical analysis.
Portfolio Stress Test: A Check for Resilience
The sixth prompt models scenarios of sharp market downturns. It shows which positions will suffer the most and allows for an advance assessment of the maximum possible loss. This is an indispensable tool for understanding portfolio vulnerability and taking proactive hedging measures.
My professional opinion: This collection is an excellent example of a systematic approach to trading. It covers all key aspects, from risk management to macro analysis and on-chain data. However, remember: no AI can replace your own experience and cold calculation. Always double-check the neural network's conclusions, especially when real money is involved.