Dec 2, 2024: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — U.S. Economy Growth Driven by Improved Productivity

If U.S. economic growth is strong, why is the Federal Reserve considering interest rate cuts? This question was recently posed to Fed Chair Jerome Powell. Instead of focusing solely on the Fed's actions, we should explore the reasons behind the robust growth, and see how it can be sustained.

Real GDP is expected to exceed pre-pandemic levels for the second consecutive year. Typically, strong growth raises concerns about overheating, but inflation has actually fallen. Recent growth is largely due to increased productivity and a growing workforce, which are not inflationary and can help rebalance supply and demand.

A significant factor behind this success is the rise in labor productivity, averaging 2.3% over the past two years — faster than the four years before the pandemic. This uptick is linked to a surge in new business applications, especially in the tech sector, as the pandemic's economic shifts and relief measures lowered barriers to entrepreneurship, particularly benefiting underrepresented groups.

The boost in productivity also reflects workers moving to roles better suited to their skills, a trend accelerated by the 

. This mobility has been essential for productivity gains, as higher job turnover correlates with increased business dynamism.

However, sustaining higher productivity is a challenge. The Fed must avoid overly restricting the economy, as high interest rates can deter investment in technology. Additionally, a gradual cooling of the labor market, with declining job quits, is concerning.

For policymakers, monitoring labor market dynamics and business formation is crucial. If these indicators decline, productivity and growth could wane. The U.S. economy has made significant progress, and maintaining this momentum is essential.

Weekly Crypto Highlight — Sui Is Poised for Growth

Bybit has released the Sui ecosystem report, with its key takeaways below. (Read the full report 

: Sui has achieved impressive performance, processing over 297,000 transactions per second (TPS) while maintaining low latency. This positions it among the fastest blockchains available.

: In 2024, Sui's market capitalization skyrocketed over 1,000%, reaching $9.5 billion and reflecting strong investor confidence and growing adoption.

: The total value locked (TVL) in Sui’s DeFi ecosystem has surpassed $1.5 billion, ranking it 11th among major blockchain networks and highlighting its rapid growth in 

: The launch of the Grayscale Sui Trust has significantly increased institutional interest, resulting in an 89% price surge for the SUI token in Q3 2024, indicating its appeal to accredited investors.

: Sui is making strides in the gaming sector, introducing the SuiPlay0X1 handheld gaming device and various 

, enhancing user engagement and expanding its ecosystem.

Developed by Mysten Labs, Sui is a Layer 1 

 (PoS) blockchain launched on May 3, 2023. Its object-centric data model allows for parallel transaction processing, enhancing throughput and reducing latency. Its use of the Move programming language ensures resource safety through rigorous bytecode verification, mitigating common blockchain vulnerabilities.

: Partnerships with firms like Copper and Zero Hash strengthen Sui’s infrastructure and credibility in the financial sector, enhancing its offerings in digital asset custody and transaction facilitation.

: Sui’s DeFi sector is thriving, with leading protocols like 

 offering diverse financial services. In gaming, initiatives such as the SuiPlay0X1 device and various web3 projects bolster user engagement.

In summary, Sui is poised for continued growth, driven by technological innovations that are expanding its presence in both DeFi and gaming.

Advanced

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Weekly Institutional Insights: Sui Poised for Growth; U.S. Economy Driven by Productivity Growth

Chill Guy is a viral meme illustration that took social media by storm before a crypto project used the meme to launch a Solana-based token. Learn more here.

What started as a simple illustration of a laid-back dog has become a global meme sensation, with the cartoon character known as Chill Guy dominating both social media trends and cryptocurrency markets. Created by artist Phillip Banks in October 2023, the easygoing canine character sparked a viral movement that has attracted major brands worldwide.

This article follows Chill Guy’s transformation from a social media sensation to a cryptocurrency asset. We'll examine its viral beginnings, community growth, market impact and what potential investors can expect from CHILLGUY in the future.

 is a viral meme illustration by artist Phillip Banks, depicting a laid-back dog in casual clothes whose easygoing attitude took social media by storm before a crypto project used the meme to launch Just a Chill Guy as a Solana-based token.

What Does Just a Chill Guy Aim to Achieve?

The CHILLGUY meme coin aims to spread a "Why worry?" philosophy into cryptocurrency markets by embracing the laid-back, stress-free attitude that made the original meme go viral. The project transforms this easygoing vibe into a community-driven token, where being low-key isn't just a catchphrase — it's a shared mindset among holders.

The CHILLGUY community brings this philosophy to life by sharing endless variations of the CHILLGUY meme across social platforms. Through market swings and viral trends, CHILLGUY keeps his iconic pose: hands in pockets, subtle smirk, perpetually relaxed.

Just a Chill Guy (CHILLGUY) operates as a Solana Program Library (SPL) token on the 

 blockchain, leveraging the network's ultrafast speeds and low costs to ensure smooth trading. The token was created using Pump.fun, a specialized platform that lets users launch Solana-based tokens without any fees, removing traditional barriers to token creation.

CHILLGUY is a community takeover (CTO), meaning it's completely owned and directed by its token holders with no central team in control. This decentralized structure ensures the project stays true to its community-driven nature, its holders collectively guiding its future while embodying the laid-back spirit of the original meme.

The CHILLGUY token launched with a maximum supply of 1 billion tokens, of which 999,965,435 are currently in circulation. This near-complete distribution of tokens to the market supports active trading and community participation.

What makes CHILLGUY's tokenomics particularly notable is its widespread distribution across more than 142,000 unique holders (as of Nov 27, 2024), achieved in just 12 days. This rapid expansion of its holder base demonstrates strong community adoption and aligns with the project's decentralized, community-driven principles.

CHILLGUY has exploded across social media, especially on TikTok, where the meme has amassed hundreds of millions of views. Its laid-back character resonates with users worldwide, inspiring countless creative adaptations.

Major brands worldwide have embraced CHILLGUY in their marketing campaigns. From Sprite Europe to NFL on CBS, the character has resonated across mainstream media, even catching the attention of global figures like El Salvador's president Nayib Bukele.

The “Chill Guy” meme’s influence spans multiple social media platforms, with a growing community of followers: 96.6K on X (

). On the other hand, the meme token itself also has a vast community, with 39.9K on X (

) and an active Telegram channel of over 15,000 members. These numbers reflect the meme's ability to engage audiences across different platforms.

The token's popularity in cryptocurrency markets matches its social media success, with CHILLGUY maintaining a substantial 24-hour trading volume of over $330.03M as of Nov 27, 2024. This high trading activity demonstrates the strong market interest in CHILLGUY beyond its meme status.

Looking to trade Just a Chill Guy tokens? Bybit now offers the CHILLGUY/USDT Spot trading pair and CHILLGUYUSDT Perpetual contract. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While CHILLGUY has maintained strong trading volumes and continues gaining mainstream attention through its viral social media presence, investors should carefully weigh its strengths and risk factors before making investment decisions.

With its widespread brand adoption, sustained trading activity and explosive community growth of over 142,000 holders, CHILLGUY demonstrates significant market potential. However, meme coins are inherently volatile. Potential investors should 

 and invest no more than they can afford to lose.

CHILLGUY is the latest viral sensation to harness the power of the attention economy to convert social media momentum into crypto market success. While CHILLGUY has already demonstrated its ability to capture mass appeal, its position as a leading meme token will depend upon how effectively it maintains its cultural relevance and community engagement in this fast-moving market.

Intermediate

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Just a Chill Guy (CHILLGUY): Embracing the Art of Nonchalance

Zircuit (ZRC) combines optimistic and ZK rollups with AI-driven security, offering fast, low-cost Ethereum Layer 2 solutions. 

 network has flourished, mainly due to the ongoing network congestion, high fees and poor scalability of the latter. Many of these platforms use rollup technology, whereby batches of multiple transactions processed off-chain are bundled together and posted in bulk to the underlying Layer 1. Ethereum-linked rollups mainly come in two varieties 

 (ZK). While optimistic rollups boast lower computational overhead, the ZK variety of these networks features a higher degree of security.

Zircuit (ZRC) is a Layer 2 chain that adopts a hybrid approach, combining the elements of optimistic and 

. This lets the platform offer the performance benefits of optimistic technology along with the security of ZK validity proofs. To further enhance overall security, Zircuit uses a unique 

 (AI)–driven system of monitoring for malicious transactions.

 (ZRC) is a hybrid Layer 2 blockchain that combines the features of optimistic and ZK rollups, and uses AI-driven monitoring for potentially harmful transactions. 

 rollup development technology, a popular framework for building optimistic rollup networks. Additionally, it uses zero-knowledge proofs, which lets the platform offer the best of both worlds 

 the performance benefits of optimistic rollups and the security of ZK technology. Zircuit is 

The Zircuit project takes security very seriously, and has introduced a unique system of AI-based protection against malicious transactions at the sequencer node level. The use of ZK proofs and an AI-based protection system make Zircuit one of the most secure platforms in the competitive world of Ethereum Layer 2 chains.

Along with its excellent security benefits, Zircuit also boasts low costs, fast transactions, excellent scalability and 2-second block production intervals. All these features make it an ideal environment for 

 (DApps) in various niches, particularly 

 (DeFi). In fact, the leading protocols within the Zircuit ecosystem are all dedicated to the finance niche, with Zircuit Staking being the largest application by TVL.

With its heavy focus on DeFi, Zircuit aims to become a leading liquidity hub for various token types within the sector, including 

. These assets can be staked through the Zircuit staking program — supported by the platform's Liquidity Hub — to earn staking APRs, airdrop rewards and points based on the Zircuit Point program (covered further in our article).

The platform also operates a secure native bridging solution, 

, to help users transfer assets between its Layer 2 network and Ethereum Layer 1.

The company behind the project, Zircuit Ltd., was founded in 2021 in Canada by Dr. Martin Derka, Jan Gorzny and Angel Xu. Zircuit's testnet was launched in November 2023, but made headlines in April 2024 when the project reported that its 

 (TVL) had soared past $2 billion. While testnet TVLs are more a gauge of future potential for a blockchain than an indicator of its existing worth, the news attracted the attention of industry observers toward the platform. Following its highly publicized testnet success, Zircuit launched the first phase of its mainnet in August 2024. This was followed by the launch of the platform's native token, ZRC, in November 2024.

As a typical rollup, Zircuit uses an off-chain sequencer node to batch and organize Layer 2 transactions for subsequent posting to the underlying Ethereum Layer 1. The batches have ZK validity proofs attached to them to signal to Layer 1 validators that they’re free from fraudulent transactions. Zircuit's architecture also includes prover nodes, whose job is to produce these validity proofs.

However, unlike other rollups using ZK proofs (also known as validity proofs), Zircuit doesn't generate validity proofs for every block of transactions. Instead, some blocks have pre-generated template proofs, while others go through the process of having a dedicated validity proof created for them. After a few blocks featuring validity proofs, there are several more that utilize template proofs. The image below illustrates this approach.

The key reason Zircuit has adopted this form of proof design is that the process of generating ZK proofs is computationally intensive. By using template proofs for some of the blocks in a sequence, Zircuit can reduce the overall computational overhead. However, the project’s team has stated that the template proof model is temporary, and will be phased out in the future. At that stage, the platform will move to generating ZK proofs for each block.

Zircuit features a highly modular design whereby provers — responsible for generating validity proofs on the platform — can easily be plugged into or removed from the network. This modular approach is distinct from the standard ZK rollup design, in which provers are more tightly and less flexibly integrated into the overall architecture.

As noted earlier, Zircuit uses a dedicated sequencer to organize and batch transactions into blocks. The platform also applies AI-driven monitoring at the sequencer level (the Sequencer Level Security, or SLS) to spot and exclude fraudulent transactions before they’re finalized on Layer 2.

When transactions are first posted to Zircuit, they enter the 

 — a temporary area from which the sequencer picks and organizes individual transactions into blocks. The mempool is being monitored at all times, using AI algorithms to identify suspicious transactions. If a transaction in the mempool raises a flag, it's quarantined and assessed for validity before the sequencer can include it in a block. The image below shows how this process works.

One of the distinct features of Zircuit is its hybrid architecture, which combines the properties of optimistic and ZK rollups. At the base level, Zircuit is built using Optimism's Bedrock development framework, a technology popular for optimistic rollup networks. However, the use of ZK proofs — or, to be more precise, a combination of validity proofs and template proofs — ensures that Zircuit enjoys a security level that standard optimistic rollups normally can't match.

The use of AI-based SLS provides robust security to Zircuit, complementing the already highly secure ZK proof system. Very few Layer 2 networks in the industry currently feature anything similar, making the platform a true pioneer of AI use for sequencer-level operations.

Like any rollup based on Optimism Bedrock, Zircuit enjoys EVM compatibility. This allows for smooth interoperability with the underlying Ethereum Layer 1. EVM compatibility also makes it easy for developers familiar with Ethereum’s environment to develop Zircuit-based DApps, or to port existing Ethereum applications to the platform. Developers can take advantage of technologies commonly used for Ethereum (e.g., the Solidity programming language and the Hardhat development framework) to build Zircuit applications and smart contracts.

Zircuit Bridge is a native bridging solution designed to easily transfer tokens between Ethereum and Zircuit. It boasts high security, low transaction fees and fast transfers, and allows users to move a variety of cryptocurrencies between Ethereum and Zircuit, including ETH, 

) and LRTs like Super Symbiotic LRT (weETHs). As of late November 2024, the total number of cryptos supported by the bridge is close to 30.

Zircuit has launched a reward program called Zircuit Points. Users can earn these Points by staking supported assets, and by participating in the Build to Earn initiative (more on this below). Accumulated points will be converted to ZRC tokens in the future. Points also create the opportunity to qualify for token airdrops.

The primary way for most users to earn Zircuit points is via 

. The Zircuit Staking program lets you stake LSTs, LRTs, popular stablecoins, some wrapped tokens and Ether (ETH) to earn points. Using LSTs and LRTs, you can earn yields (along with native Zircuit staking APRs and Points) from the respective staking and restaking platforms that issue these assets.

Zircuit Points earned via staking have different multipliers, depending upon the asset. For example, Ether has a multiplier of 0.5, while LSTs, LRTs and stablecoins have a multiplier of 1. Multipliers for different LST and LRT assets may be subject to change in the future.

Build to Earn is another way to qualify for Zircuit Points. The program allows developers to contribute to the Zircuit ecosystem and earn Points in a number of ways, including:

Launched in November 2024, ZRC is the platform's native cryptocurrency. It's an 

 asset deployed on both Zircuit and Ethereum Layer 1. ZRC is mainly used for reward distributions, and participation in token airdrops for ecosystem DApps. Currently, transaction fees on the network are paid in Ether. It's possible that, in the future, ZRC might be used for some transaction fee payments.

ZRC is also used for rewards under the Gas Rebate program. As users conduct transactions on the platform, they 

. Zircuit’s Gas Rebate program provides rebates to offset some of the incurred fees. The amount of ZRC earned as a rebate is proportional to the amount spent on gas in ETH; the project's documentation states that for each ETH spent on gas, the user earns 125% in ZRC. All kinds of gas fee payments qualify for the rebate, including ordinary asset transfers and transactions involving interaction with Zircuit DApps.

ZRC is a supply-capped token, with a maximum and total supply of 10 billion. The token's supply allocation shares are as follows:

The ZRC token is available on Bybit's Spot market as a swap pair with USDT (

 to grab a share of the 5 million ZRC prize pool. New users who sign up for a Bybit account and complete identity verification can earn ZRC rewards by accumulating a deposit volume of at least 2,000 ZRC, or by depositing 100 USDT and trading 100 USDT worth of ZRC via their first trade with Bybit. 

Meanwhile, existing users can qualify for ZRC rewards by trading at least 500 USDT worth of ZRC on the Bybit Spot market, with the possibility of earning up to 10,000 ZRC based on trading volume. The 

 event will run through Dec 10, 2024, 8:59AM UTC.

Zircuit is among the pioneering Layer 2 platforms to adopt a hybrid design for a rollup network. Thanks to the platform's architecture, users can take advantage of low transaction costs, fast transfers and great scalability while enjoying the benefits of high security delivered by ZK proofs and AI-driven mempool monitoring. AI-based monitoring for fraudulent transactions is a particularly notable feature of the platform and is undoubtedly among the most advanced technologies employed in the blockchain industry.

User security combined with faster and cheaper transactions for the Ethereum network — all in one package — is now feasible, thanks to Zircuit's innovative technology and unique approach!

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What Is Zircuit (ZRC): Where Performance Meets Cutting-Edge Security

Bybit is celebrating its sixth anniversary with the #Super6Bybit event, offering a $1.2 million prize pool and focusing on its bbSOL token.

Daily Top Performer — Virtuals Protocol (VIRTUAL)

On Wednesday, the S&P 500 fell 0.38% as tech stocks dropped and inflation data reinforced a hawkish Fed outlook. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.40%, with Bitcoin and Ether dropping by 1.86% and 1.79%, respectively in the past 24 hours.

Today's top performer is VIRTUAL, which surged 53.6% following the launch of the $MUSIC token by Agentstarter, featuring AI-driven music video capabilities and community-focused tokenomics.

Virtuals Protocol (VIRTUAL), founded in 2021, allows users to invest in and co-own AI-driven virtual assets like companions and influencers. Its model fosters community ownership, transforming AI agents into revenue-generating assets across platforms like Roblox and TikTok. The platform attracts contributors from AI and gaming to drive innovation in virtual economies. 

, using AI to create music videos and offering features like animated videos, voice mimicry, and karaoke tracks. The tokenomics allocate 60% for airdrops, 20% for liquidity, and 10% each for the development team and Virtuals Protocol.

Check Out the Latest Prices, Charts, and Data of 

Bybit is celebrating its sixth anniversary with the 

, offering a $1.2 million prize pool and focusing on its bbSOL token. Launched in September 2024, bbSOL is the first exchange-backed Liquid Staking Token on Solana, providing liquidity and staking rewards. The campaign, running from November 28, 2024, to January 6, 2025, invites participants to build, transform, and supercharge their bbSOL through tasks, leaderboards, and community milestones, increasing rewards. The event combines gaming mechanics, community engagement, and opportunities to win prizes while promoting innovation and growth in the crypto space.

Yesterday, there were no flows in BTC Spot ETFs, including GBTC and non-GBTC categories.

. Stake BNB on Lista's portal to get slisBNB, then deposit it into Astherus to earn airdrop points with multipliers (3X for Lista, 1.15X for Astherus). No lockup is required, and slisBNB is the most efficient option.

Beginner

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Bybit Celebrates 6th Anniversary with $1.2M Prize Pool and bbSOL Supercharging Campaign

Bybit Learn

Trading

Turtle trading is a strategy traders can use to take advantage of sustained momentum in trading markets. Find out whether it works for the crypto market here.

Investors have been developing new strategies to guide their trading decisions for hundreds of years. Over time, new strategies are developed, intriguing investors searching for the right tool that allows them to corner the market and bring in high returns. 

One such strategy involves "turtle trading," which was first developed in the early 1980s and has since become popular among investors of all experience levels. Before you consider implementing this strategy, let’s learn more about how it works and whether it can be used for the crypto market.

Turtle trading is a strategy traders can use to take advantage of sustained momentum in trading markets. The goal is to follow set rules on making trades that limit the role of emotions during your decision-making process.

This strategy has been employed across a wide range of different financial markets. Traders who use this strategy attempt to find breakouts among various assets regardless of the price movement (up or down).

The turtle trading experiment was developed primarily by Richard Dennis

. Dennis trained 14 separate "turtles" on how to follow rules — instead of using their “gut feelings” when making decisions. The methodology behind this experiment, as well as the results that occurred, would lead to the development of turtle trading as a legitimate decision-making strategy.

Turtle trading’s extensive experiment began in the early 1980s. It was created by two commodity traders who wanted a more effective futures markets trading strategy. Here's a closer look at the origins of the turtle trading experiment, as well as how the experiment ended.

In the early 1980s, Richard Dennis was already an established commodity trader who had garnered a considerable amount of success. When he first started out, in the early 1970s, it's said that he borrowed $1,600 to make investments and reportedly earned $350 million in just six years. Dennis and his trading partner, William Eckhardt, would routinely discuss their success with commodity trading, and how to improve it.

Dennis believed that any individual could effectively be taught how to trade on the futures markets. On the other hand, Eckhardt believed that Dennis had a talent that allowed him to be successful as a commodity trader and to profit from his profession. Dennis decided to settle the debate by creating an experiment to prove his hypothesis.

The turtle experiment acquired its name after Dennis referred to his students as "turtles.” After a two-week training period during which he taught his students the rules associated with his trading system, he provided participants with his own money. The purpose of the experiment was to impart new investors with a completely mechanical technique for making investments.

Dennis’s rules were designed to assist traders in removing emotion from their decisions. The underlying concept behind both experiment and methodology was to ensure that traders would base their decisions solely on predetermined rules, without taking any other factors into account.

While Dennis knew that he could place all of these rules into a newspaper article, he understood that only a small number of traders would actually adhere to them. His many years of experience in the industry had shown him that the majority of traders only use trading rules to provide some basic structure, before “improvising” whenever they considered it necessary.

 following these rules in a rigid manner would produce poor trading performance. The experiment was set to last for a period of two weeks. Dennis named his students "turtles" because of an experience he’d had visiting turtle farms when in Singapore. He believed that, just like turtles, traders could be grown quickly and efficiently.

Formal results from this experiment — which continued for five years — weren't published. However, a former "turtle" named Russell Sands, who died in 2019, had stated that the two separate classes of turtles whom Dennis trained earned over $175 million in a period of five years. The takeaway is that even first-time traders who had no previous experience with the market could learn how to trade effectively and ultimately become successful traders.

Some of the “turtles” were asked to leave the experiment, but of those who were able to rigorously follow the prescribed strategies, there were notable successes. Jerry Parker, a “turtle” who even now practices the system’s precepts, 

 Chesapeake Capital after founding it over 30 years ago.

Even though modern investors can't be given personal training by Dennis (who, incidentally, is still politically active and president of Dennis Trading Group Inc.), the rules he established can be applied when making trades. The main goal again is to purchase breakouts and eventually close on trades whenever prices begin to drop or rise.

Although turtle trading resulted in some success for traders who were part of the experiment, there are some issues to be aware of before you begin to use it for crypto trades. The primary one is that sizable 

 are common when using this trading technique.

The majority of breakouts that investors place their money into are false movements, which can lead to investors losing on a high number of trades. The potential for high returns is still possible for investors who understand that drawdowns will happen.

There are a large number of rules that must be followed when using the turtle trading technique. However, the original turtle trading rules have been modified over the years. Even though the initial strategy of identifying possible breakouts is still somewhat effective, modern traders have modified these rules in order to more effectively identify trends.

For instance, the previous rules stated that an investor should only enter the market when the price goes above the 20-day high. The modified rules prescribe buying whenever the price goes higher than the 200-day high. Turtle trading doesn't work much differently when used to make crypto trades and investments versus stocks, bonds and futures.

Turtles only trade in highly liquid markets, which yields more market depth to mitigate risks and reduce potential losses. When employing the turtle trading strategy, make sure that you focus your attention on the most popular crypto assets. 

The following section explains the rules behind turtle trading in detail.

During the experiment, the turtles traded various futures contracts with the goal of making trades in highly liquid markets. This approach was meant to provide traders with the ability to move the market without necessarily making a sizable order. Along with commodities, turtles traded metals, bonds, the S&P 500, FX and energy.

Position-sizing is an algorithm that effectively normalizes the volatility of the set position by altering how sizable the trade is based on the current market volatility. The purpose of this system is to enhance diversification by making sure that every position in each market is the exact same size.

Highly liquid markets will have fewer contracts traded. At the same time, markets that are less liquid will trade many more contracts. The position-sizing system assesses the 20-day moving average for the true range to determine how volatile the market currently is.

Turtles ended up using two completely different entry systems when making trades. As mentioned previously, these systems have been modified over the years. The first of the two entry systems involved using a basic 20-day breakout. The second system used a 55-day breakout.

Winning positions were added with a maximum of four entries. Turtles were told directly by Dennis to take all signals that were offered, because of the knowledge that missing just one signal could result in a large winner being overlooked. Missing a big winner could substantially reduce total returns.

Turtles were told to take advantage of stop-losses whenever necessary to make sure that losses never went too high. An important aspect of the stop-loss strategy was that the turtles needed to determine what their exact stop-loss was before entering a position. The intention here was for risk to be defined before even making a trade, allowing the turtles to mitigate losses. (Investments in more volatile markets, such as crypto, involve wider stops.)

As for exits, turtle trading rules state that leaving a position earlier than normal could limit the potential returns from the trade, which is a mistake that regularly occurs with other trend-following systems. Turtles used two separate trading systems, which resulted in two exit rules.

The first exit rule involved a 10-day low when taking long positions into account, as well as a 20-day high for any shorts. In comparison, the second system used a standard 20-day low or high. The price was watched in real time, as opposed to using stop-exit orders.

Turtles were also taught by Dennis how to use 

 while dealing with any quick-moving markets. Another tactic involved waiting for relative calm before placing a new order — as opposed to trying to quickly obtain the best price, which is a mistake that many new traders make. Turtles were told to purchase in the strongest markets, while also selling in the weakest ones, in order to benefit from momentum.

Over the years, traders of all experience levels have learned the ins and outs of turtle trading, which has allowed investors to take away some key lessons. While the initial turtle trading rules have been modified to account for current trading standards, traders still use the principles behind turtle trading when making trading decisions.

Understand the Concept Behind Your Trading Strategy

Whether you use the turtle trading method in the crypto market or decide to use a completely different strategy, it's essential that you comprehend every facet of the concept behind the strategy, as well as the logic of the rules it’s based on.

Once you truly understand the concept, you should be able to implement more than one trading strategy around it, which helps to diversify risk. Without knowing what the trading strategy actually means, you'll likely stop using it after the first drawdown occurs since you won't know how to correct this issue.

Even if the turtle trading strategy works for you when conducting crypto trades, you may still incur high losses if you don't develop a risk management strategy as well. Let's say that you're using the modified turtle strategy that produces a return of more than 32% and a drawdown of more than 41.50%. If the risk per trade is just 1%, you're in a relatively manageable position.

Investors who don't use a risk management strategy could decide to increase risk to around 4%. In this scenario, the annual returns would be just under 76%. However, the max drawdown would be around 97%. If this drawdown ever occurs, it would be practically impossible for you to recover from it. The takeaway here is that any trading strategy should be paired with risk management techniques.

Market conditions invariably change on a regular basis within the crypto industry, which means you may not be successful using the same trading strategy at all times. Eventually, this strategy will likely result in an extended period of drawdown. It's also possible that a trading strategy will no longer work at all, which can put you in a difficult situation.

If you find that your trading strategy no longer works, there are several steps you can take. First, determine whether the concept behind your strategy has failed — or the actual strategy no longer works. In the event that the strategy is all that’s failed, you can retool it around that concept for an improved approach to trading.

If you find that the concept behind your strategy no longer produces results, you’ll want to change to a completely new trading concept, instead of attempting to salvage the one you currently use. Once you've moved to another concept, start creating new strategies around it.

Plan your exit, just as you plan your initial entry. Know exactly when you’ll either exit with your profits or cut your losses.

Does Turtle Trading Work for Crypto Markets?

Over the years, many traders have used the turtle trading strategy on crypto markets. The results haven't been great. When following the initial turtle trading system from the early 1980s, it's difficult to obtain high profits. However, the modified rules mentioned previously have resulted in more profits, since trades are made less frequently.

 isn't a great option in cryptocurrency markets. When taking the turtle trading rules into account, shorting doesn't provide many benefits and can lead to capital loss when making numerous stop-losses throughout a bull run.

One reason why the initial turtle trading system isn't perfect for crypto is because it was meant to be used with loosely correlated markets. Cryptocurrency assets have relatively high correlation in regard to price. If you want to use the turtle trading strategy when making crypto trades, the modifications you should implement include the following:

Every crypto trader wants to find the perfect strategy that will net them high returns when trading crypto. While you might make the right trades at the right times, the turtle trading rules mentioned earlier aren't necessarily perfect for everyone. Beginners and experts alike should be able to use the turtle trading strategy without much issue.

However, the results can vary depending on your approach and the level of risk you take on, which means that it will take time for you to identify if turtle trading is right for you. It's true that many of the "turtles" who first took part in the turtle trading experiment garnered an ample amount of success.

On the other hand, Dennis himself incurred exceedingly high losses in the stock market crash of 1987, which means that this isn't an infallible strategy. Regardless of the trading system you decide to use, it's highly recommended that you have a strong basis for each trading decision you end up making.

Turtle trading is a unique strategy that gives traders the opportunity to explore making investment decisions without putting any emotion into their decisions, which may result in a successful approach to trading. Since the turtle trading experiment took place in the early 1980s, the rules behind this strategy have been modified. Take this reality into account before you decide to implement this strategy with your trades.

What Is Turtle Trading & Does It Work for the Crypto Market?

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