Short thread on the different types of narratives and how I like to play them
๐งต
๐งต
1/ The News Trade - mostly LTF
- Characterized by a one time news event
- Meat of the trade is by front-running the news, not by holding it past it
- In fact, post news sometimes present good shorting opps on LTFs
Example: Avalanche Partnership announcement - 4% move
- Characterized by a one time news event
- Meat of the trade is by front-running the news, not by holding it past it
- In fact, post news sometimes present good shorting opps on LTFs
Example: Avalanche Partnership announcement - 4% move
2/ The Flavor of the Week Trade - HTF
- A strong coin that takes huge mindshare and just outperforms everything
- Normally you just BTD (dependent on market conds)
- Key: Knowing when to exit
Example: $APTOS
- A strong coin that takes huge mindshare and just outperforms everything
- Normally you just BTD (dependent on market conds)
- Key: Knowing when to exit
Example: $APTOS
3/ The Correlation Trade - LTF/HTF
- CT hates longing stuff that has pumped, so they look for correlated coins instead
- Mostly in the same "basket"
- Key: Be fast & choose the right ones
Example: $AXS into $GMT today
- CT hates longing stuff that has pumped, so they look for correlated coins instead
- Mostly in the same "basket"
- Key: Be fast & choose the right ones
Example: $AXS into $GMT today
4/ The Catalyst Trade - HTF
- For news that can be frontrun (e.g unlocks / catalysts)
- Unlocks not necessarily bearish
- Tech upgrades not necessarily bullish
- Key: Look at market risk appetite
Example: $dYdX v4 - well known, still up bigly
$MAGIC - bullish unlock
- For news that can be frontrun (e.g unlocks / catalysts)
- Unlocks not necessarily bearish
- Tech upgrades not necessarily bullish
- Key: Look at market risk appetite
Example: $dYdX v4 - well known, still up bigly
$MAGIC - bullish unlock
5/ There's a lot more nuance to it, but generally figuring out how to classify each trade has helped me immensely in knowing how to approach them
Have a strategy, have discipline
Have a strategy, have discipline
6/ There's so much more to it than what I shared - sub to my substack so that you don't miss if I make a post on it
0xkyle.substack.com
0xkyle.substack.com
7/ Lastly, I hope you've found this thread helpful.
Follow me @0xkyle__ for more narrative trading tips, & Like/Retweet the first tweet below if you can:
Follow me @0xkyle__ for more narrative trading tips, & Like/Retweet the first tweet below if you can:
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