What Is the Long-Short Ratio? Why Doesn’t a Higher Number of Longs Mean the Market Will Definitely Rise?

In cryptocurrency trading, many people see the long-short ratio rise and assume bullish sentiment is growing, then choose to go long. But market sentiment and actual price movements do not always align. The long-short ratio can help us understand traders’ positioning bias, but it cannot directly determine how the market will move next.

First, what is the long-short ratio?

The long-short ratio measures the relative proportion of longs to shorts in a specific market. However, different pla

Bitcoin plunged below $70k overnight, liquidating 170k traders, with longs accounting for 89%?
It fell from $70,800 to below $69,000 in just an hour and a half.
Liquidations totaled $1.41 billion over 24 hours, including $1.26 billion in long positions—this was a mass wipeout of leveraged longs.
Note that these are derivatives liquidations, not the total losses of spot investors. Don’t confuse the two.
Stronger rate-hike bets, combined with MSCI’s plan to remove companies like Strategy from its benchmark indexes, brought a double blow.
But these may not be the only reasons. Once market sentime

Why does a larger account loss require a higher return to break even?

There is a mathematical principle in trading that is easy to overlook: the percentage loss and the return needed to break even are not symmetrical. The deeper the account’s losses, the harder it is to restore its original balance.

First, losses and recovery are not symmetrical. Suppose an account has 100k USDT. After a 30% loss, only 70k USDT remains. To get back to 100k, it needs to rise by about 42.9%, not just gain 30%.

Second, the deeper the loss, the greater the pressure to recover. After a 50% loss, only half the fu

What Is the Funding Rate? Why Can Perpetual Contracts Continue to Incur Holding Costs Even When Prices Barely Move?

In cryptocurrency trading, many people focus only on price movements after opening a position and overlook the funding rate. For perpetual contract traders, even if prices move sideways for a long time, holding a position may still incur additional costs or generate returns as long as the funding rate is nonzero.

First, what is the funding rate?

The funding rate is a mechanism in perpetual contracts for periodic payments between longs and shorts, designed to keep contract pric

$BTC Surpassed 20 million🙄

Must put knowledge into action—bought the dip #黄仁勋辞职

A sharp drop! Bitcoin has fallen to 67,000. Is it time to buy the dip or keep shorting? Let's discuss.
Bitcoin has steadily slid from around 81,200 to around 67,000, which is very unfavorable for bulls. Is it time to buy the dip?
You can buy the dip, but it may be better to wait a little longer. The resistance at 69,100 has been tested several times without a breakout, and the pullback has been limited. A short-term recovery above the broken 70,000 level is also unlikely, so you could follow the trend and open short positions around 69,000. Targets: 65,800–64,800, with a stop above 70,000$BTC

11.13 Gold Commentary
Tonight’s U.S. session will decide gold’s fate next week
If gold closes above 3950—or even 3985—it still has a chance of being rescued next week and may avoid ending up in a vegetative state. The higher time frame still points to a possible double bottom, while the lower time frame could form a head-and-shoulders bottom—a bullish scenario!
The bearish scenario is that if the weekly chart closes with a moderately bearish candle, there could be another low next week
Friday’s price action is usually pretty wild—what if? Make a last-ditch effort: either sit tight and wait for

$SOXL $BTC Are all 1,000 people copy-trading Aoying’s $ETH financially free now? It’s up 89,597% in five months

What Is the Sharpe Ratio? How Do You Measure Whether the Returns from a Trading Strategy Are Worth the Risk?

In cryptocurrency trading, a high return does not necessarily mean a strategy is good. If a strategy can generate high returns but comes with sharp volatility and significant drawdowns, we need to further assess whether those returns are worth the risk. The Sharpe ratio is one tool that helps answer this question.

First, what is the Sharpe ratio?

The Sharpe ratio measures the excess return earned by a portfolio or trading strategy per unit of volatility risk. Generally, the higher th

What Is Trade Expectancy? Why Does It Reflect a Strategy’s Long-Term Profitability Better Than Win Rate Alone?

In cryptocurrency trading, a high win rate does not necessarily mean making money, and a low win rate does not necessarily mean losing money. What really matters is how much profit or loss each trade generates on average when you keep trading according to the same set of rules. This is the core meaning of trade expectancy.

First, what is trade expectancy?

Trade expectancy (EV) is a metric that combines win rate, average profit, and average loss to estimate the long-term average out

$1.47 Billion Wiped from the Crypto Market 🥹
Most of the long positions were worth $1.3 billion

11.13 Qiqi on Gold Midday Review: Price Pulls Back After a Spike, Entering a Tug-of-War; Rebound Upside Is Limited!

Gold prices spiked to test the 3923 high in early trading before coming under pressure and moving lower. After a sharp drop, they bounced slightly and are now consolidating around 3898. Upside momentum gradually faded after the early-session spike, intensifying the market tug-of-war between bulls and bears as they await the PPI data to determine the market’s direction.

After a rally, the market is taking a breather. The short-term rebound is weak, the previous bearish structure

🐋 WHALE WATCH :$440M liquidated in the past hour. $417M from longs.
=> $BTC broke below $69K.
=> $ETH dropped under $1950.
=> $SOL hit $78.
Longs got washed.

The sentiment is characteristic of a wave 2 indeed.

How can out-of-sample testing help prevent mistaking accidental patterns in historical market data for a lasting edge?

A trading strategy performing well in historical backtests does not mean it can adapt to future markets. To reduce the risk of overfitting, out-of-sample testing is a crucial step in validating a strategy.

First, what is out-of-sample testing?

Simply put, it means dividing historical data into different periods: one part is used to develop the strategy and adjust parameters, while another is excluded from optimization and reserved specifically to test how the strategy perfo

It's a bit quiet today; only 8% of the bot quota has been used
Still haven't seen anything fun to try out 🤣
With the market down, have all the devs gone to add to their positions and run out of time to build