First clarify the position: Alpha is not about 'knowing earlier,' but about 'executing faster and more steadily.'
Everyone can see the news; the difference lies in the process. The following set is the strategy I have repeatedly refined in Binance Alpha - replicable, reusable, and reviewable.
One-sentence definition: Alpha is 'the internal channel for early assets'
For me, Alpha is turning 'task points → exchange limits → Alpha trading → online spot' into a closed loop.
The changes in the new version (commonly known as 2.0) are more straightforward: shorter paths, direct access within the system, and quantifiable details. This means - newcomers can enter the market, and seasoned traders compete on efficiency.
My Alpha Five-Step Method: Water Testing - Scheduling - Positioning - Execution - Review
1. Water Testing (10 minutes before entry)
I first look at three things; if any one fails, I do not press the button:
Funding Level: Net inflow of stablecoins / Is the transaction expanding? Without liquidity, no matter how good the pattern, it's just self-indulgence.
Crowding degree: Is the funding rate/basis rising? Only discuss retreat in crowded areas, not adding positions.
True depth: Use fixed amounts for slippage testing, watch for false walls. Depth determines the upper limit, slippage determines the lower limit.
2. Scheduling (Three alarms for T-2/T0/T+1)
T-2: Write down the activity rules, time window, limits/thresholds to the checklist; finalize positions and stop-loss.
T0: Just 'press the button,' do not change the plan.
T+1: Review the account book (see step ⑤).
3. Positioning (Economics of Points)
Points are not welfare funds; they are the currency of priority. My order:
First do stable and repeatable points to cushion the 'base points';
Batch exchange limits, position first then weight, avoid gulping during crowded periods;
If there are 'tiered reduction/auction-style' arrangements, approach them with time layers and do not go all-in.
4. Execution (Three questions for entry, three steps for exit)
Three questions before entering
If I remove leverage, would I still take this trade?
Is the stop-loss written in the order?
Is this a directional order or an efficiency order? (Different scripts)
Position 'ruler'
Use R as a risk unit (I use 0.5%–1% of account equity per trade);
Position = Allowable Loss ÷ (Entry - Stop-Loss);
Hard red line: a single stock -7% halved, -12% liquidated; stop trading after losing 2R that day.
Three steps for exit
Add only after breakthrough and pullback support;
Once the goal is reached, take profit in batches;
Rate warming/volume shrinking → stop adding positions, only discuss retreat.
5. Review (Three columns in the account book)
Point cost | Exchange limit | Actual amount received at a glance;
Did I earn process efficiency or directional dividends today?
Solidify effective actions into templates, clean up ineffective actions.
Three types of people, three sets of strategies (each takes what they need)
Newbies: Only pursue 'task → exchange' for certain returns; do not chase at opening; treat 'slippage testing' as a mandatory course.
Conservative approach: small position for positioning, wait for a pullback to add; do not aggressively pursue during crowded sections, focus on convergence/recovery.
Aggressive approach: Pull weight in batches, create two pockets for 'basis/rate convergence' and 'quick recovery'; small leverage, fast pace, take profit written down.
My commonly used 'Risk Dashboard' (written in the front position)
Crowding risk: High rates, dense upper shadows = retreat script.
Rule risk: Time window/allocation method may be adjusted - only follow the latest announcements.
Liquidity risk: Poor depth + many false walls = only suitable for 'quick hands', never heavy positions.
Emotional risk: Missing out ≠ losses; use chasing high to compensate for emotions, and over the long term, it's a loss.
Plug-and-play Alpha checklist (can be copied directly)
Understand the rules: time window, limit amount, locked/unlocked
Funding bucket: participation portion + trial and error portion (trial and error only tests depth and rules)
Write R value and stop-loss into the order
T0 first use a fixed amount for trial orders to see slippage; qualify before scaling up.
Exchange/place orders in batches, do not go all-in during crowded peaks.
T+1 accounting in three columns and review: share | limit | received
Morning light conclusion in one sentence
Alpha is never a treasure cave; it is an efficiency track.
When you turn 'Water Testing - Scheduling - Positioning - Execution - Review' into muscle memory,
News is just background noise, taking the initiative becomes your daily state.
