AI Investor Timo Shares On-Chain Trading AI Target Strategies

In the Web3 space, AI investor Timo's trading journey began in 2017 with the purchase of Bitcoin. After experiencing the ups and downs of contract trading, he started focusing on on-chain trading last year, venturing into various fields such as inscriptions, token swaps, and presales, ultimately shifting his focus to zoo and AI-related projects.

Timo emphasized that when trading AI assets on-chain, it is important to invest in projects that one can understand. His main strategy is to look for secondary opportunities with potential returns exceeding ten times, while strictly controlling the investment proportion of a single project to no more than 15%. This strategy currently has a success rate of over 90%.

Investment Opportunities in AI Assets

Timo believes that the development of AI in Web3 generally follows the trends of AI in Web2. He analyzes investment opportunities in several key areas from the perspective of the industrial chain:

1. Protocol Layer: It is necessary to develop a底层协议 that supports intelligent interaction between Agents.

2. Model Layer: Specialized model training and optimization inference costs are important directions.

3. Data Layer: There is a huge demand for the screening, cleaning, and labeling of high-quality data.

4. Tool Layer: Establishing an open platform that allows various tools to connect will have great potential.

5. Application Layer: Focus on AI Agent applications that can attract frequent usage by Web3 users.

Operation Strategy for Two-Stage Transactions

Timo's two-step trading strategy includes two steps: fundamental analysis and technical analysis. Fundamental analysis determines whether to buy, while technical analysis decides at what price to buy.

Fundamental analysis mainly considers four aspects:

1. Narrative: The positioning and appeal of the project.
2. Control of Funds: Is there strong support from a whale?
3. Products and technology: need to be thoroughly understood and analyzed.
4. Team Background: Look for "regular troops", verify their resumes and achievements.

Regarding the position for building a position, Timo suggests paying attention to the operations of market makers. It is usually more reasonable to build a position when market makers are accumulating funds.

Suggestions to Avoid Trading Errors

1. Conduct thorough research: Spend time analyzing the project in depth and obtain first-hand information whenever possible.
2. Positioning and Position Management: Stay patient and avoid rushing into positions or going all in. Focus on fundamentals and market maker behavior, rather than just simple technical analysis.

Valuation Methods for AI Assets

Timo proposed two valuation methods:

1. Benchmark Valuation Method: Applicable to new targets in existing tracks.
2. Cognitive Valuation Method: Suitable for brand new projects without references.

In terms of profit-taking strategy, Timo suggests setting three valuation stages for the project and gradually reducing positions as different targets are reached.

Suggestions for Continuous Growth

Timo shared four personal growth suggestions:

1. Shrink the ego and see the essence of things.
2. Maintain curiosity and an open mindset to adapt to market changes.
3. Learn to review and reflect to avoid repeating mistakes.
4. Accept others' opinions and doubts, and continuously absorb new knowledge.

Finally, Timo emphasized the importance of understanding market rules. Only by fully understanding the various aspects of on-chain transactions can one succeed in this rapidly changing market.