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Day 3 — Strategy Execution & Risk Discipline

Prerequisites: This guide assumes you’ve completed Day 1 (DLMM basics) and Day 2 (advanced strategies and security workflows).

Session Overview

Bootcamp session led by instructors Pesal and Megumi, with a guest appearance from Evil Panda (Logical TA), lead of Meteora Indonesia. This session shifts focus from theory to hands-on execution — applying strategies in real positions and building the discipline to manage risk.

Disclaimer: All content is for educational purposes only. Manage your own risk and only invest what you can afford to lose.

Token Analysis & Safety Tools (Revisited)

Building on Day 2’s professional vetting workflow, this session reinforces the critical safety checks with live demonstrations.

Live Safety Demo

flowchart TD
    A["Token Found"] --> B{"Rugcheck.xyz"}
    B -->|"Clean contract"| C{"Bubble Maps<br>(via GMGN)"}
    B -->|"Freeze authority<br>High ownership"| X1["AVOID"]
    C -->|"Distributed holders"| D{"Volume Analysis"}
    C -->|"Single entity<br>controls supply"| X2["AVOID"]
    D -->|"Organic patterns"| E["SAFE TO PROCEED"]
    D -->|"Flat bars<br>Bot-driven"| X3["AVOID:<br>Wash Trading"]

    style E fill:#2d7d46,color:#fff
    style X1 fill:#c9252d,color:#fff
    style X2 fill:#c9252d,color:#fff
    style X3 fill:#c9252d,color:#fff

Key takeaways from the live demo:

Technical Analysis for LP

Day 2 introduced the key indicators. This session focuses on applying them to position entry decisions.

Indicator Quick Reference

flowchart LR
    A["MACD"] --> A1["Blue > Orange<br>= Bullish"]
    A --> A2["Orange > Blue<br>= Bearish"]

    B["RSI"] --> B1["> 70<br>= Overbought"]
    B --> B2["< 30<br>= Oversold"]

    C["Heikin Ashi"] --> C1["Smoothed candles<br>Cleaner trends"]

    D["VPVR"] --> D1["High-volume nodes<br>= Support/Resistance"]

    style A fill:#1473e6,color:#fff
    style B fill:#e68619,color:#fff
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    style D fill:#888,color:#fff

Support & Resistance in Practice

Identifying high-volume nodes on the VPVR helps LPs place ranges more effectively:

Advanced DLMM Strategies (Execution Focus)

Strategy Selection

flowchart TD
    A{"Market<br>Condition?"} -->|"Stable / Ranging"| B["Spot & Chill<br>Wide range, passive fees"]
    A -->|"Volatile / Trending"| C{"Have<br>conviction?"}
    C -->|"Yes, topped out"| D["Bid-Ask Flip<br>SOL to Token to SOL"]
    C -->|"Moderate"| E["Toothpaste<br>Compound fees into<br>bid-ask positions"]

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    style D fill:#e68619,color:#fff
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Bid-Ask Strategy (Execution Detail)

As covered in Day 2, the bid-ask strategy places single-sided liquidity to buy or sell incrementally. This session emphasizes the execution specifics:

  1. Enter SOL-only at a price level below the current market (your “bid”)
  2. As price drops, SOL gradually converts to the token — you’re buying the dip in small increments
  3. Once price has dropped and SOL has fully converted, withdraw liquidity
  4. Re-enter with tokens (single-sided ask), positioning for the rebound
  5. As price bounces, tokens convert back to SOL — you’re selling in small increments
  6. Withdraw — you now hold SOL plus profit from the spread

Key insight: You’re not making one trade — you’re setting up dozens of automatic micro-trades across your range.

The “Toothpaste” Method

A compounding strategy that reinvests fee earnings into directional positions:

flowchart TD
    A["Open Spot Position<br>(wide range)"] --> B["Earn Trading Fees"]
    B --> C["Claim Fees"]
    C --> D["Reinvest Fees<br>into Bid-Ask Position"]
    D --> E["Bid-Ask earns<br>directional profit"]
    E --> F["Claim combined earnings"]
    F --> C

    note1["THE CYCLE:<br>Spot earns base fees<br>Bid-Ask compounds gains<br>Repeat = Toothpaste squeeze"]

    A -.- note1

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    style note1 fill:none,stroke:#888,stroke-dasharray:5 5

How it works:

  1. Open a standard spot position on a pool you’re comfortable with
  2. As fees accumulate, claim them
  3. Take those fees and open a smaller bid-ask position — this is the “squeeze”
  4. The bid-ask position captures directional movement, compounding your earnings
  5. Repeat the cycle — each round adds more capital to your compounding engine

Why “Toothpaste”? Like squeezing a tube — you extract every last bit of value from your earned fees by reinvesting them into higher-efficiency positions.

Spot & Chill Strategy (Expanded)

A passive approach for those who prefer lower maintenance:

Risk Management & Exit Plans

Impermanent Loss vs. Out of Range

flowchart TD
    A["LP Position Active"] --> B{"Price moves<br>outside your range?"}
    B -->|"No"| C["In Range<br>Earning fees normally"]
    B -->|"Yes"| D["Out of Range (OoR)<br>No longer earning fees"]

    D --> E{"What to do?"}
    E -->|"Wait"| F["Price may return<br>IL stays unrealized"]
    E -->|"Close position"| G["IL becomes<br>realized loss"]
    E -->|"Rebalance"| H["Close + reopen<br>at new range"]

    C --> I{"Fees > IL?"}
    I -->|"Yes"| J["Net profitable"]
    I -->|"No"| K["Net negative<br>(still unrealized)"]

    style C fill:#2d7d46,color:#fff
    style D fill:#e68619,color:#fff
    style G fill:#c9252d,color:#fff
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Key distinction:

Cut-Loss Discipline

One of the most critical skills for profitable LP:

When to cut:

Rules:

  1. Don’t be greedy — Accept small losses to preserve capital for better opportunities
  2. Don’t hold losing bags — Emotional attachment to a position is the enemy of profitability
  3. Stay consistent — If your exit signal triggers, execute immediately regardless of hope
  4. Wrong pick = immediate exit — Oversized bundles, bad chart reads, or failed thesis should trigger instant cut-loss

Profit Taking Strategy

flowchart LR
    A["Small wins<br>1-5% per session"] --> B["Compound<br>over time"]
    B --> C["Consistent<br>growth"]

    D["Chase pumps<br>High risk"] --> E["Occasional<br>big win"]
    E --> F["Frequent<br>big losses"]

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    style F fill:#c9252d,color:#fff

Live Position Walkthrough

Opening a Single-Sided SOL Position

Step-by-step process demonstrated live:

flowchart TD
    A["Analyze chart<br>with TA indicators"] --> B["Identify support level<br>for entry"]
    B --> C["Open Meteora<br>Select pool"]
    C --> D["Choose single-sided<br>SOL deposit"]
    D --> E["Set custom range<br>based on TA"]
    E --> F["Review parameters<br>Bin step, fees, range"]
    F --> G["Confirm transaction"]
    G --> H["Monitor position<br>Track fees vs. IL"]

    style A fill:#888,color:#fff
    style E fill:#1473e6,color:#fff
    style H fill:#2d7d46,color:#fff
  1. Analyze the chart — Use MACD, RSI, and VPVR to identify entry timing
  2. Identify support level — Find where high-volume nodes suggest price floor
  3. Select pool on Meteora — Choose the trading pair and bin step
  4. Deposit SOL only (single-sided) — Position for price movement into your range
  5. Set custom range — Based on your TA, not arbitrary percentages
  6. Review and confirm — Check bin step, fee tier, and range width before signing
  7. Monitor — Track fee accumulation against impermanent loss

Bootcamp Assignment

Homework Requirements

Participants must complete the following to qualify for the next bootcamp role:

RequirementDetail
Position typeNon-stablecoin pair
Minimum deposit$15 equivalent
Hold durationAt least 1 hour
Profit targetMinimum 5% return

Purpose: This assignment forces participants to apply everything learned across Days 1-3 — token vetting, technical analysis, strategy selection, and position management — in a real scenario with real capital at stake.

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