"AI P Rookie" Advancement Guide: How DeFAI Reshapes the Trading Experience

Original Title: AI Trading with DeFAI: Welcome to the Next Era of On-Chain Automation

Original author: @danielesesta, defai researcher

Original text compiled by: zhouzhou, BlockBeats

Editor's Note: The future of DeFAI is fundamentally changing the way DeFi trading is conducted by transforming simple text commands into executable on-chain strategies through AI. Whether it's dollar-cost averaging (DCA), take profit and stop loss, or volatility management, the system can execute with precision, eliminating the need for manual operation. It simplifies complex trading strategies, allowing ordinary users to enjoy hedge fund-level tools, truly achieving "set it and forget it."

The following is the original content (the original content has been organized for easier reading and understanding):

A major criticism of decentralized trading is that, compared to traditional finance and even top centralized exchanges, it lacks mature trading tools. In the past, traders on DEX often had to keep a constant eye on the screen, ready to click "buy" or "sell" at any moment, while automated methods were extremely limited, and even basic stop-loss mechanisms were not intuitive to implement on-chain.

DeFAI (AI + DeFi) and Hey Anon were born from this. These platforms utilize AI-driven smart agents to implement complex trading strategies based on conditions, without the need for human intervention. Ultimately, users can enjoy advanced features that rival or even surpass those of centralized trading platforms, truly bringing automated trading, risk management, and conditional triggering logic into the decentralized trading world.

Limitations of Existing Decentralized Exchanges

• Limited tools and interface: Although DEX has developed rapidly, it still lacks the advanced features of centralized exchanges— even with limit orders, the operation is relatively cumbersome, and advanced triggering mechanisms such as trailing stop-loss, ATR position management, and tiered DCA (dollar-cost averaging) are basically absent.
• Highly dependent on manual operations: Traders often need to closely monitor the market to execute entry and exit or partial profit-taking actions in a timely manner. If they leave the screen and miss the selling opportunity, they can only blame themselves.
• Insufficient risk management: Current risk control measures mostly remain at basic operations such as "manual stop-loss settings" or "reducing positions." However, in the actual market, especially for meme coins or newly listed tokens, volatility is severe and liquidity changes rapidly, necessitating more refined risk response mechanisms.

These issues make it difficult for many users to fully engage in decentralized trading, despite the permissionless nature of on-chain transactions offering great autonomy, innovation, and global participation.

DeFAI: Disrupting the Game Rules of Decentralized Trading

DeFAI combines AI logic with DeFi smart contract interactions, the architecture built by Hey Anon can:

1. Automatically execute on-chain transactions based on conditional events, without the need for manual intervention;

2. Allow ordinary users to easily create complex AI trading strategies through simple natural language commands (such as "buy X if Y happens");

3. Integrate advanced risk management systems to lower the operational threshold and potential risks of DEX trading.

This transformation will bring unprecedented intelligence and convenience to decentralized trading.

From Commands to Executable On-Chain Strategies

One of the most notable features of Hey Anon's AI architecture is its ability to convert simple English commands into actual executable on-chain operations. Traders do not need to switch between multiple interfaces or write custom scripts; they just need to describe their strategy in one sentence, for example:

"Sell half when Coin A profits 50%, set a trailing stop loss at 2 times ATR for the remaining part, and exit completely when the increase reaches 300%."

AI agents will automatically handle each step, from price monitoring to trade execution, and even cross-chain operations, simplifying the entire process.

Advanced tools at your fingertips

1.DCA (Dollar-Cost Averaging) Buying Strategy

Dollar-cost averaging is a proven investment strategy, but decentralized platforms have always had limitations in terms of automation. Hey Anon offers the following dollar-cost averaging methods:

• Fixed time interval: "Buy $50 of Token Z every 4 hours."
• Price Trigger: "If the price pulls back 10% from the previous high, then buy an additional 10%."
• Volatility-based Dollar-Cost Averaging: "When volatility exceeds the set threshold, increase the buying frequency to capture lower prices during a downturn."
• Portfolio-based dollar-cost averaging: "Invest 2% of stablecoin assets daily to purchase new memecoins, but only for tokens with liquidity exceeding the set threshold."

These trigger mechanisms reduce the uncertainty of manual operations, with AI agents monitoring the market around the clock to ensure that no trading opportunities are missed.

2.DCA (Dollar Cost Averaging) Selling Strategy

Orderly exit from the market is equally crucial, Hey Anon provides various intelligent selling methods:

• Price target trigger: "Sell 25% at +50%, sell another 25% at +100%, and liquidate the remaining portion at +200%."
• Trailing Stop Loss Investment: "Automatically adjusts the stop loss range based on token volatility and gradually sells off."
• Time-based selling in batches: "When the target profit is reached, sell in batches within a fixed time (e.g., within 1 hour) to reduce slippage or price impact."

3. Risk Management and Advanced Strategies

In highly volatile on-chain trading, risk management is crucial. DeFAI offers advanced risk control features:

• Dynamic Position Adjustment:

"If the ATR (Average True Range) doubles, reduce the position size by 50%."

"Increase positions when market volatility converges and liquidity is healthy."

• Kelly Criterion:

Calculate the optimal capital allocation ratio based on historical win rates and expected risk-return.

• Time/Event-based exit strategy:

"Close 30% 10 minutes before the Federal Reserve announcement."

"If a certain token is listed on exchange X, sell it linearly within the next 5 minutes."

4. Liquidity Monitoring:

"If the daily trading volume falls below 30% of the average level, or the buy slippage exceeds 5%, stop buying."

Imagine you have a strategy like this:

"Monitor token $X, invest $69 every 420 seconds. If the price pulls back 80% from the previous high, change to buying every 69 seconds until the position reaches $6,900. Initial setting of a trailing stop loss at 0.5 times ATR; if in a profitable state, expand to 2 times ATR. Sell the initial principal at 120% profit, and liquidate at 300% profit. If the ATR doubles while in a profitable state, reduce the position by 30%. If the token is listed on exchange Y, sell 69 linear trades within 5 minutes."

In a traditional environment, executing such strategies requires manual monitoring, setting up a large number of limit orders, or relying on third-party bots (which often have trust or reliability issues). However, under Hey Anon's DeFAI system, these operations can be accomplished through a simple conversation, where the AI agent automatically converts each condition into a series of on-chain execution actions.

Reshaping Decentralized Finance

The impact of this AI revolution in the DeFi space cannot be underestimated:

1. Say goodbye to the constraints of screen monitoring Traders can define strategies for AI to handle buying, selling, and risk management, without having to monitor the market constantly, freeing themselves from the high-intensity oversight of the memecoin or altcoin markets.

2. Popularize advanced trading tools Techniques that were previously only available to hedge funds, such as volatility-based position management or the Kelly Formula, are now available to the average user, significantly lowering the barrier to entry.

3. Unlocking Trading Creativity With just one command, you can combine cross-chain operations, token sniping, partial profits, event-driven adjustments, and even multi-token stacking strategies—the only limit is your imagination.

4. Create a Safer Trading Environment By implementing strict risk management, the occurrence of liquidation and zeroing of funds can be reduced, thus promoting a healthier ecosystem even in the high volatility environment of new cryptocurrencies.

Looking to the Future: Infinite Possibilities

DeFAI is not just a few advanced trigger conditions or a better user interface, but a paradigm shift. The entire system is driven by on-chain code and AI logic, strictly executing user-defined instructions, and possessing evolutionary potential:

• Integrate fundamental data (such as GitHub project updates or social sentiment) into the trigger conditions.
• Provide advanced analysis similar to professional research institutions, combining high-level data analysis with direct execution capabilities.
• Expand to multi-token or cross-chain strategies, bridging liquidity and reinvesting returns across multiple ecosystems, while automatically managing Gas fees and cross-chain complexities.

The wave of innovation has already begun. The future of DeFi may be an integrated ecosystem fully controlled by AI agents, covering everything from yield farming to token issuance and complex derivatives strategies—without users needing to manually confirm each operation or switch between multiple dApp interfaces.

Hey Anon stands at the forefront of this DeFAI revolution. We are opening up an unprecedented era of automation in the DeFi space, centered around security, clarity, and intuitive AI trading instructions.

Conclusion: Imagination is just the starting point

The era of 24-hour monitoring and manual trading at 2 AM is about to end. We are standing on the threshold of on-chain AI trading, which can:

1. Monitor the market

2. Calculate Risk

3. Perform actions for you with extreme precision.

From advanced dollar-cost averaging strategies to complex volatility risk control, DeFAI makes "set it and forget it" a reality—even in the chaotic market of meme coins and newly issued tokens.

This is a truly revolutionary change, as it makes decentralized trading accessible to everyone—whether you are a beginner looking for secure and stable strategies or an expert conceiving multi-condition, multi-asset trading solutions. The best part? You just need to use your imagination and create entirely new trading methods with simple natural language commands.

Welcome to the Hey Anon era - AI-powered trading enables any user, regardless of experience, to utilize advanced automated strategies, turning DeFi into a world full of infinite possibilities.

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