Video Overview
In this episode of the Crypto Market Wizards podcast, host Taiki is joined by the pseudonymous character CL207, also known as “the cat.” They discuss various aspects of crypto trading, the origins of CL207’s persona, and the dynamics of being a pseudonymous figure in the crypto space. For a deeper dive into the conversation, watch the full video.
Notable Quotes
- “This person is gonna be a great writer, and I turned out to be a shit poster.”
- “You can say whatever you want and then yeah, you can say whatever you want, like what are they gonna do, right?”
- “I got in [to crypto trading] in ’18 and then I thought I can just buy and hold and get rich.”
- “It’s mostly just pros… Maybe the only con so far is like, I feel like a bunch of smaller accounts get intimidated.”
- “I was very lucky to have like an actual fund pick me up for a few months where I traded prop for them.”
- “I think the harder to build like deeper connection part is more so because I travel too much.”
Discussion Highlights
- CL207’s unique backstory involving a fortune teller’s prediction and how it led to his nickname “cat.”
- The pros and cons of being a pseudonymous character in the crypto world.
- CL207’s journey into crypto trading, starting in 2018 with a buy-and-hold strategy and evolving into leverage trading.
- His experience working with a prop trading fund and the aggressive trading strategies they employed.
- Reflections on missed opportunities, such as the Dogecoin trade that could have yielded significant profits.
- Insights into the dynamics of market liquidity and the impact of trading on various exchanges.
Controversial or Unique Ideas
- CL207’s approach to trading as a game, focusing more on the excitement of price movements than the potential earnings from trades.
- The idea that smaller, less-known accounts on crypto Twitter may offer more valuable insights compared to larger, more popular accounts.
- Discussion on the importance of networking in the crypto space and how joining various group chats can lead to valuable connections and information.
- CL207’s perspective on the role of social media and influencers in shaping market dynamics and token valuations.
The Origin of “The Cat”
So, let’s kick things off with a bit of an oddball story about how CL207 got his nickname “The Cat.” It’s a tale that traces back to a fortune teller his mom visited, who predicted he’d be a great writer—ironically, he became a notorious shitposter instead. The fortune teller also warned of people going after him, suggesting a softer, humbler persona to avoid trouble. His mom took this advice to heart and started calling him “Cat,” a nickname that stuck and became part of his online pseudonym.
The Pros and Cons of Anonymity
Being a pseudonymous figure in the crypto space has its ups and downs. For CL207, it’s mostly ups, like being able to say whatever the fuck he wants without fear of direct repercussions. The downside? Smaller accounts might get the wrong idea about his wealth or feel intimidated. But the real con for him is the difficulty in building deep, meaningful connections due to his constant travel and lack of consistent interaction with friends.
Trading Journey and Philosophy
CL207’s trading journey began in 2018 with the naive belief that buy-and-hold would make him rich. When that didn’t pan out, he turned to leverage trading, treating it more like a video game than a financial strategy. His focus was on understanding price movements rather than the potential earnings from trades. This approach led him to share ideas on Twitter, which caught the attention of a fund that hired him as a discretionary trader. After a stint there, he went solo in 2020.
His trading style is aggressive, with no care for entry points or distinct stop losses. Instead, he uses momentum and time-weighted stop losses, buying at the top if he must and selling at the next. He admits that his biggest single trade PNL is around $200-300k, and he prefers scalping and intra-day or intra-week trades over holding positions for more than a month.
Market Manipulation and Understanding Liquidity
During his time at the fund, CL207 got a firsthand look at market manipulation tactics, like shoving prices on different platforms to see the impact and understanding how markets like OKX and BitMEX were arbed against each other. This experience gave him a clear sense of market workings, even though the fund didn’t fare too well during the crash. Post-fund life, he’s been doing his own thing, leveraging his understanding of market liquidity and movements.
On Crypto Twitter and Finding Alpha
CL207 believes that big accounts on Crypto Twitter are overrated and that the real alpha often comes from smaller, underrated accounts. He suggests that networking and engaging with these smaller accounts can be incredibly valuable, as they might have insights that larger accounts catch on to later. He also emphasizes the importance of making your own decisions and not relying solely on others’ opinions.
Overall, CL207’s journey and insights paint a picture of a trader who’s carved out his own path in the crypto world, with a blend of irreverence, strategic aggression, and a knack for understanding the ebb and flow of the market.
