A compulsory course for crypto options traders: How to do daily review?

  • Transaction Data Review

    • Maintain a detailed log of each trade, including timestamp, target, direction, position ratio, and slippage.
    • Identify anomalies like unplanned stop-loss failures or emotional position increases.
    • Use tools like Notion/Excel for tracking Greek value changes and slippage statistics.
  • Market Environment Analysis

    • Scan volatility structure: Compare 30-day IV and HV, triggering warnings when differences exceed historical percentiles.
    • Monitor on-chain data (e.g., exchange inflows, funding rates) using tools like Nansen and Glassnode.
    • Verify trends with multi-period signals (e.g., EMA crossovers) and total locked volume (TVL).
  • Strategy Stress Testing

    • Simulate extreme scenarios (e.g., price surges/crashes) to assess Delta tolerance and margin coverage.
    • Respond to volatility spikes (e.g., IV surges) by adjusting Vega exposure or exploiting arbitrage opportunities (e.g., Skew Index > 1.2).
  • Risk Management Review

    • Enforce rules like reducing position limits after 5% daily drawdowns and capping low-liquidity contracts at 10%.
    • Implement behavioral safeguards (e.g., cooling-off periods after consecutive losses).
  • Review Toolkit

    • Leverage dashboards for volatility (TradingView, Greeks.live) and on-chain alerts (DeFiLlama, Arkham).
    • Automate calculations with tools like Google Sheets syncing Deribit data or AI models predicting volatility shifts.

The goal is to refine strategies, close loopholes, and capitalize on opportunities through disciplined, data-driven reviews. Share your tips for effective trading reviews!

Summary

Recently, the cryptocurrency RV has been rising, and many coin friends have made good profits. But how can a small victory become a long-term victory? This is inseparable from the compulsory course for professional traders: daily review. Today, let's talk about how to do the review.

1. Review of transaction data

  1. Holographic transaction log

    • Record the timestamp (accurate to seconds), target (BTC/ETH), direction (buy bullish/bearish/sell), position ratio, and slippage data of each transaction

    • Mark abnormal operations: failure to stop loss as planned, emotional increase in positions, and execution deviation caused by liquidity traps

    • Tools: Notion/Excel template, including Greek value change curve and slippage statistics table

  2. Dynamic monitoring of Greek values

    • Delta: If the overall position is negative, it is necessary to evaluate whether it deviates from the current market trend (e.g. BTC breaks through the EMA20 moving average but Delta is still bearish)

    • Theta: Crypto options lose time 30% faster than traditional markets, calculating the daily time value loss of positions

    • Vega: monitors the Deribit IV index. When the IV percentile is > 90%, the obligated position needs to be forcibly reduced.

2. Three-dimensional analysis of market environment

  1. Volatility Structure Scan

    • Compare 30-day IV and 30-day HV: When the IV-HV difference > the historical 75% percentile, the volatility regression warning is triggered

    • Surface abnormal signal: Deep out-of-the-money call IV suddenly becomes 15%+ higher than the same level put, reflecting FOMO sentiment

  2. On-chain data penetration

    • Core indicators: Net inflow to the exchange (whale withdrawal warning), perpetual contract funding rate (extreme value > 0.1%/hour indicates leverage overheating)

    • Tools: Nansen smart money address monitoring + Glassnode holding distribution chart

  3. Multi-period trend verification

    • 4-hour/daily EMA20/50 crossover signal, combined with TVL (total locked volume) breakthrough to verify effectiveness

3. Strategy Stress Testing

  1. Extreme market deduction

    • Skyrocketing scenario: Does the Delta position exceed the account's tolerance? Does Gamma need to be hedged (such as buying reverse options)?

    • Crash scenario: Is the margin coverage ratio of the mandatory warehouse > 150%?

  2. Volatility Pulse Response

    • IV surges 50% in a single day: Vega exposure is calculated immediately, and mandatory positions are forced to reduce to Delta neutral

    • Volatility arbitrage opportunity: When the Skew Index (Put/Call IV Ratio) > 1.2, a call option discount buy signal is triggered

IV. Risk Management Review

  1. Account security scan

    • When the maximum daily retracement is greater than 5%, the position limit for the next trading day will be automatically reduced by 50%

    • Low liquidity contracts (such as forward options) account for less than 10% of the positions

  2. Behavioral Error List

    • Mandatory rule: 1-hour cooling-off period after 2 consecutive losses

5. Review Toolkit

  1. Data dashboard

    • Volatility monitoring: TradingView Skew plugin + CompareMarkets IV quantile chart + Greeks.live data lab

    • On-chain alerts: DeFiLlama protocol abnormal withdrawal monitoring + Arkham large account address change push

  2. Intelligent review system

    • Greek Value Calculator: Google Sheets automatically syncs Deribit data

    • AI early warning model: training on-chain feature data 15 minutes before historical volatility mutation

The purpose of reviewing is to summarize experience, make the best use of strengths and avoid weaknesses, and to timely discover strategy loopholes and seize arbitrage opportunities. Doing a good job of reviewing and letting your mind form a rational trading path is a long-term effort. So, let's exchange review experiences together. Welcome to leave a message and share your review tips.

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Author: 张无忌wepoets

This article represents the views of PANews columnist and does not represent PANews' position or legal liability.

The article and opinions do not constitute investment advice

Image source: 张无忌wepoets. Please contact the author for removal if there is infringement.

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