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Price Leads Narrative: The Key to This Trader's $50M Success

How This Top Trader Profits from Price Action (And Why You Should Too)

Author

Kierin M
March 01, 2024

Imagine turning $80,000 into a $50 million crypto fortune.

One trader has done it, and he's not stopping at his next goal of $100 million.

Discover the coins he's holding, the 3 key strategies behind his success (including his "price leads narrative" philosophy), and how you can track his moves to learn from his approach.

Smartestmoney didn't start with millions.

His journey began in 2017 with an $80,000 investment.

After years of hard work and dedication, he has managed to grow his net worth to over $50 million, and it is likely that he has even more than that.

3 Key Strategies For Success

Eleven months ago, he launched a dedicated 'Perp' account (short for perpetual futures) alongside his Twitter profile.

This proved significant. While USDM trades offered followers solid returns, his CoinM account is the one that brought substantial gains. Here’s the tweet where he’s sharing his pnl.

He hasn’t closed his trades yet.

Here are three key rules that smartestmoney

1. Price Leads Narrative

Everyone assumes that the news and events drive price movements.

However, the “price leads narrative” concept challenges this idea.

It suggests that the price moves first, and humans try to explain the movement by creating a narrative.

Why this matters:

Traders might be lured into chasing projects that have already gone up quite a bit because they fit a certain narrative.

Focusing on the technical analysis and setups before the breakout happens is much better.

There are quite a few well known traders such as Peter Brandt that talks about the dangers of chasing narratives and why it’s important to respect the price action. Cryptocred and Bluntzcapital also strongly warn about getting too swayed by narratives.

However, it doesn’t mean you should ignore the fundamentals. It just means you shouldn’t justify a coin's move because it fits a narrative.

2. Volume Profile Concepts

Smartestmoney doesn’t rely on complicated indicators.

However, he stresses the importance of studying price action and understanding the volume profile. 


Husky is the best source to get a primer.

This is definitely a more advanced topic, but it is super useful once you understand it more clearly.

3. Higher Timeframes + patience

Many traders focus too much on short-term price fluctuations.

I found that using higher timeframes improved my win rate drastically compared to lower timeframes.

If you're losing more trades than winning, try increasing your timeframe. A longer-term view can increase your win rate and maximize profits.

If you are using super low timeframes then…

The Portfolio Reveal

Onchain wallet 0xeb29

Curious about what this trader holds? Here's a glimpse into his wallet:

Smartestmoney holds a staggering $40m in his ETH wallet, which you can look at on Debank.

His main holdings include ETH (99.9%), Ondo (0.01%), Sudo (0.01%), Portal (0.01%)

Depending on your portfolio size and risk tolerance, your altcoin allocation will probably be a lot higher than what smartestmoney has.

Public Binance Futures Profile

You can take a look at his public binance futures profile and see for yourself what positions he is holding. If you are reading this post, he might have completely different positions in the future.

Here are the main positions he’s holding with the entry and PNL.

The 6 Altcoins Smartestmoney is bullish on

Ethereum $ETH ($3'300 mcap:$400bn): The second-largest cryptocurrency by market cap, Ethereum is a L1 decentralized platform smart contract platform for DeFi and NFts

dYdX $DYDX ($3.36 mcap $1bn): A decentralized derivatives trading platform governance token. Smartestmoney is bullish on Dydx since $2.56 and mentions that there might also be a fee switch like what happened with Uniswap.

Ondo Finance $ONDO ($0.47 mcap:$668m): A decentralized protocol focused on structured financial products, separating risk and yield.

Blur $BLUR ($0.72 mcap: $1bn): The native token of Blur, an NFT marketplace and aggregator with advanced features for professional traders. This is probably one of the best tokens to go long on the Ethereum NFT space as well as a good way to accumulate points for the Blast ecosystem. There might also be a fee switch in the future.

Celestia $TIA ($16.66 mcap: $2.7bn): A modular blockchain network focused on data availability and consensus. Celestia enables simplified blockchain deployment while prioritizing scalability and security. Even though we don’t see his position. He mentioned in this tweet that he holds TIA and staked it.

Altcoin $ALT ($0.47 mcap: $528m) AltLayer is a flexible layer-1 blockchain infrastructure designed to facilitate the creation of rollups. AltLayer addresses the key challenge of blockchain scalability, potentially unlocking widespread adoption. I like the fact that it’s got the $ALT ticket.

How To Copy Smartestmoney's moves

🧰 Actionable: 

There are three ways you can copy trade smartestmoney.

Here’s how:

  1. Follow his twitter account and activate his notifications. Until now, he’s been very diligent with his trade setups. Sometimes he uses cryptic language, but it’s part of the game.

  2. Follow his onchain moves with Cielo. Add his debank address to the Cielo tracker (free). You will get notifications when he receives funds or sends funds to an exchange.

  3. Follow his trades (not live anymore but delayed) on the telegram channel mirrorly smartestmoney. They used to be live but unfortunately as his channel grew it messed with his position sizing. I think it’s still really useful to follow.

Recent VC raises

  • BounceBit ($6M, Yield Farming): Earns users high yields through automated yield farming strategies. They are building a BTC restaking infrastructure.

  • Flare ($35M, Smart Contract Platform): Enables developers to build secure and scalable smart contracts.

  • EigenLayer ($100M, Staking): Improves scalability and security of blockchains through staking. The most popular aspects are that it allows users to restake their staked eth earning double the yield.

  • Superfluid ($5.1M, Asset Management, Financial Services): Provides real-time streaming of crypto assets for DeFi applications. The future of subscriptions might be like that, you pay every second you use the subscription instead of once a month.

  • Clave ($1.6M, Blockchain Service, Wallet): Offers a secure and user-friendly wallet for managing crypto assets. Uses account abstraction, pay transactions with any token and use your phone a web3 passkey vault. They’ve got a lot of exciting features.

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