The Book of Wolong

May 15th, 2014
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  1. The Book of Wolong
  3. Majority believes that markets move randomly and reflect the collective
  4. wisdom of investors, the truth is quite the opposite. The invisible hand is a
  5. myth. Market prices has always been manipulated by the government's
  6. visible hands through influencing laws and regulation. Insiders control markets
  7. and manipulate them up or down for profit. Manipulation is everywhere,
  8. undeniable and unavoidable. It happens on a very large scale throughout
  9. every single financial markets out there, stock, bonds, commodities,
  10. currencies and so forth. There are other types of manipulation, such as social
  11. and news manipulation, hence I called it: The Game of Deception.
  12. "Whale watching" is a trading strategy of monitoring the trades of the most
  13. influential or wealthy investors, known as "whales". "Whales" refers to
  14. traders with significant bankrolls that their actions impact heavily on the
  15. markets. The purpose of this book is to trade in the shadow of the smart
  16. money, understanding how market manipulation works, and become
  17. profitable by understanding.
  19. Most traders do not understand volume implications and how vital it is in
  20. their analysis of any of the markets. Given at any point of time, traders are
  21. constantly long, short, holding, some waiting to get into the market, some
  22. already in profitable positions. "Long" means when a trader buys, in this
  23. example: DOGE/BTC hoping that the value of Doge will go up against BTC,
  24. the "Short" means the opposite. Whenever a trade is entered, the exchange
  25. will register this as volume on a continuous ongoing basis. Volume represents
  26. activity and it relates to the price bar on your chart. Chart reflects clearly and
  27. is the reason why it is behaving the way it is. "Whales" contributes 70-80%
  28. of the volume you see, which is why it is large enough to alter the direction
  29. of a market. I will not go into identifying the traces of a whale activity in book
  30. one, but rather my primary focus would be explaining how manipulation
  31. works, and the thoughts of a market manipulator.
  33. "If you know your enemies and know yourself, you will not be imperiled in a
  34. hundred battles" - Sun Tzu
  36. Individuals trade the market for a puThe Book of Wolongrpose, and that is to profit. Many of you
  37. are meticulous in entering a trade, cracking your head whether the price you
  38. are about to buy or sell is too high or low, although some might possess
  39. knowledge of technical analysis, you are still at a loss in the end. This is quite
  40. common, for you have not understand the characteristic of a "whale". They
  41. are ruthless, swift, cunning, very very patient and most importantly, they do
  42. not obey the rules of the game. A price will never be too high or low for
  43. them. Prices might have soar 100%, 200% and it will never be too late for
  44. them to enter. Buy high? Sell higher! Sell low? Buy lower!
  47. To almost everyone, it is simply just pump and dump. However, the truth is,
  48. there are many stages to make a pump and dump successful. The stages
  49. includes:
  50. 1) Position BuildingThe Book of Wolong
  51. 2) Suppressing prices
  52. 3) Test Pump
  53. 4) Actual Pump
  54. 5) Shakeouts
  55. 6) Re-allocation and distribution
  56. 7) Exiting - The Dump
  59. Position Building
  60. There are multiple ways to build a position. This is the stage where we will
  61. require a significant amount of market share to do pumps. The most
  62. common method will be micro buys. Through placing of buy order in
  63. relatively small amounts, it avoids driving up prices and also masked our
  64. existence. Some alternate coins, however, has really low amount of volume,
  65. and it will take ages to build up our position through mThe Book of WolongThe Book of Wolongicro buys. In such
  66. cases, we will be force to do a pump up, to encourage sellers. Pump waves
  67. will be gradually decreasing, smaller and smaller, forcing out all sellers so that
  68. we can have what we want - market share. This has happened many times
  69. infact to date, such as Doge/BTC, UNO/BTC, Dev/BTC and GLC/BTC.
  71. Suppressing prices
  72. Contradicting isn't it? That we are willing to pump altcoins up a few times of
  73. it's value worth before driving down it prices. And yes, like I have stated
  74. earlier on, prices does not matter to us as long we can sell higher. However,
  75. like every other business on the industry, everyone would want their costs to
  76. be as low as possible. In this very stage, we will pile up whatever we have
  77. bought, to suppress prices as much as possible through sell walls so that we
  78. are able to do our buying cheap. Our sell walls are usually just enough to
  79. appear as though as it's the invisble hands of the market, minor supply over
  80. demand.
  82. Test Pump
  83. Before a real pump happens, whales like us tends to test the market. Why?
  84. Reason is simple. It is to ensure that we have absolute control of the
  85. market. Test pump, like shakeouts, actual pumps, re-allocation and
  86. distribution, happens many time throughout the pump and dump process. By
  87. doing a test pump, we will roughly get an idea on where our next resistance
  88. will be and how much floating chips are around ( Floating chips refers to
  89. weak hands). Whales hate weak hands, they do not act as any form of
  90. support for us during a pump, and we will are always determine to get rid of
  91. them in the early stages, no matter how long it takes.
  93. Actual Pump
  94. The term pretty much explains everything. When weak hands are being
  95. forced out, and we have gain the market share that we expect, we are ready
  96. to move.
  98. Shakeouts
  99. Shakeout is a deliberately forced price reaction, whose purpose is that of
  100. stimulating public selling in order to facilitate the accumulation of speculative
  101. positions. This is the most aggressive part in wiping out weak hands of their
  102. positions. Sometimes during a shakeout, we can be so aggressive that we
  103. drive prices so low that's it's way below our cost price. Losses does not
  104. matter to us, it is only on paper, and we have enough bankroll to pump
  105. prices back up. Individuals who have no experienced or unable to withstand
  106. such psychological torture will usually exit the market at this stage.
  108. Re-allocation and distribution
  109. Re-allocation and distribution usually serves the purpose for us to re-balance
  110. our portfolio. In a test pump, we might distribute you some of our shares
  111. (coins). The logic is quite simple, sometimes during a pThe Book of Wolongump, buying into our
  112. own walls and others, we bought more than expected. We will have to
  113. release a few back to the individual traders. At times, it serves as a support,
  114. and reduce our risk exposure or being a "safe trap". What do I mean by
  115. that? For example if you were to distribute you at $5 and then we were to
  116. drive prices back down to $4.50, we will know that the total amount of
  117. shares being distributed at $5 will not be selling at $5. Traders tends to exit
  118. when in profit and are unlikely to exit with breakeven costs. I used the word
  119. "safe" is because, this is not the part where we will be dumping. There are
  120. alot of re-allocation and distribution, like shuffling a pack of cards throughout
  121. the entire process, and prices tend to go much higher than the price that you
  122. are "trapped" at.
  124. Exiting - The Dump
  125. This is usually the last stage. The part where we take our profits and
  126. completely exiting the market. There are many exit strategies available to us.
  127. I will be revealing some of it and explain. The most common mindset
  128. everyone had is that we either micro sell or massively dump into buy walls
  129. during a dump. Theses are just the basic. Usually by exiting via this method,
  130. gives us really a bad price to sell at.
  131. The Book of Wolong
  132. One of the exotic methods we used : "Exit during a pump". This works by
  133. having sell walls in place, and buying into our own walls again and again
  134. aggressively until the crowd follows. Once they follow, they will be biting into
  135. our walls. Hence we are able to exit portions of it, bits by bits, rinse and
  136. repeat a few times, we will be able to exit the market completely.
  138. Another method is known as "Exit by putting a sell wall". Well, many of you
  139. who follows my trades on #dogecoin-market, knows that I like having sell
  140. walls up to suppress prices and buy doges cheap. However, I am able to
  141. imply this strategy by deceiving everyone into thinking that I am merely
  142. capping prices but the fact is, I am micro selling my way out.
  143. Exposing and unraveling the secrets behind my pumps and dumps.
  145. By now, everyone should be very curious and if not dying to find out how I
  146. orchestrated my pumps and dumps, especially with dogecoin. I will give a
  147. very detailed account on what actually happened and how I played the Game
  148. of Deception using the art of war to my advantage.
  150. I must admit that I got into Dogecoin few weeks late, that was when prices
  151. were trading about 120-140 satoshis. I started out with only a few MH/s as
  152. gpus were really hard to get. Prices fell to 90-80 satoshis, it appears to be
  153. normal to me at first, but something caught my attention. Things were not
  154. right. Based on years of trading experience I had, it seems to me that
  155. someone is intentionally suppressing the prices to buy in doges. There are
  156. whales playing around with dogecoin!
  158. Well, like many others, I siezed the opportunity by contacting by ultra rich
  159. friends to be involved in this pump and dump process. Doge was dead cheap,
  160. everything was right. The increasing growth in subscribers on reddit, the
  161. tipping community, were a perfect condition to manipulate doge prices
  162. effectively. The fundamental factors and elements determine the outcome of
  163. a military engagement. A battle is won before it is even fought. All the
  164. conditions were met. Pricing, volume, the community backing it and the
  165. growth that is gradually increasing.
  167. I heavily bought into dogecoin 26-50 satoshis. I shared my trades on
  168. #dogecoin at first. Why? Simple! I am a nobody there. I have expected and
  169. predicted that no one will listen to a trade recommendation by someone new
  170. in there. It will not affect any of my position building but rather gain me some
  171. sort of fame and reputation for future use.
  173. While dogecoin hits 50-70 satoshis, the truth is, I did not owned 10 billion
  174. doge, but rather a mere total of 4 billion. The amount of holdings I had were
  175. overstated so as to aid me and mask by exit strategy in the near future.
  176. Now, came the part of Jamaican bobsled team. It was a perfect time for
  177. other whales and myself. We signal through buy/sell walls that we are ready
  178. to move. It was a test pump. We wanted to see if the dogecoin community
  179. were gullible enough to think that it was the Jamaican bobsled publicity that
  180. have drove dogecoin prices up. The bobsled team brought value and publicity
  181. to dogecoin, but people are always confuse with prices and value. Having
  182. value does not mean having a price, and having a high price does not mean it
  183. has value. In the world of manipulation, we used the news, the social
  184. network as our advantage. We were right, by droving prices up, the
  185. community gave credit to the bobsled team for moving dogecoin prices up,
  186. which is what I wanted.
  188. Over a course of a week, I begin appearing frequently on #dogecoin and
  189. #dogecoin-market giving trade calls and announcing pumps. To cut the story
  190. short, I turned aggressive, driving prices up to 280 satoshis where the crowd
  191. bought into my sell walls. I was able to exit near 270 a portion of my
  192. dogecoins. I wasn't done with it. Driving prices higher will put me into a risk
  193. of buying dogecoin high and unable to exit safely.
  195. This is the part where I gave everyone on #dogecoin-market a floor, 160
  196. satoshis. A precise floor that I will support, and 230 as resistance. I moved
  197. prices up and down within this range to gain confidence and support from the
  198. community that I am backing it and able to control doge prices at will. Then
  199. came the part of which I need more faithful followers, who will ride the
  200. waves with me, gurantee a few profits, and act with me. Why? Reason is
  201. simple. I sold most of my doges high and I have lost a significant amount of
  202. market share. I need to regain the market share, without physically
  203. possessing it.
  205. The most memorable event that happened during this phase was that 4chan
  206. and reddit laughed and mocked "TheMollyMachine", one of the guys in my
  207. private channel. Logs leaked on the internet showed how "TheMollyMachine"
  208. was bleeding at that time when someone big dumped doges into his btc buy
  209. walls. I had to change a course of actions, to move doge down to 170
  210. satoshis , and with a target price of 130 satoshis in mind. I forecasted that
  211. not everyone will act accordingly as they have no idea of what a short sell is
  212. ( To sell low and buy back lower). One example in this case which is freenode
  213. user "hinv". The purpose of me initating this without giving a clear
  214. explaination on what we are doing to followers of mine which holds no
  215. knowledge in trading, is pretty clear. I knew and had reports from OPs in my
  216. channel that freenode channel is not secured. Anyone would be able to spoof
  217. a nick that is on the invite list to freely enter that channel when the nick is
  218. not in used. I took advantage of that again, to create chaos and leak logs
  219. that I failed in the dump, of which after the dump failed to 170, I drove prices
  220. back up to 190. The purpose of this is crystal clear. I need someone to buy
  221. into my dumps high, while slowly driving prices to 130. To those who are in
  222. the private channel especially ops such as randomclown, Tuxedage,
  223. Sir_Knee_Grows, SuchWow and taner, would have clearly known that 130
  224. will be the bottom price. Taner appeared to be more excited. He had a bet
  225. with me earlier on that prices will hit 80 satoshis, which I told him 130
  226. satoshis will definitely be a rock bottom.
  228. Now, remember the part that I have told everyone that I had no access to
  229. investors funds during the holidays of Chinese New Year for the traders that
  230. listens to my order to buy or sell are away. And the part that I stated
  231. dogecoin will be trading above 200 once Chinese New Year ends? Yep, you
  232. now you recalled. Well, I orchestrated another plan. Which is to move my
  233. people inside my private channel to UNO/BTC for I saw value in UNO and
  234. were at a good price to buy at. This serves two purposes. If they are out at
  235. 160 and bought in UNO heavily, it will be less selling pressure for me to exit
  236. my investors funds. At this point of time, investors holding of doge are not
  237. yet fully sold. To others, it might have appeared that I used my members
  238. into selling DOGE/BTC and UNO/BTC but apparently, it is not the case. I gave
  239. them the chance of buying UNO/BTC at a lower price, having sufficient time
  240. to build up their position for UNO/BTC has much greater potential and
  241. without having worrying that they will be affecting my dumps on DOGE on a
  242. later date. Killing two birds with one stone.
  244. Now, halving date for DOGE is now nearer and nearer. People are gullible and
  245. naive thinking that during halving their doge prices will be worth double of the
  246. 280's initial tops. They forgotten that it is us the whales, that drives prices
  247. up. Again, they fell for the deception that I long for. Near halving day, what a
  248. perfect day for my dumps. I will have a lot of people that will actively and
  249. happily buying out whatever I dumped to them. On Feb 12, I dropped the
  250. nuclear warhead. It was what I expected and I managed to exit my position
  251. entirely on DOGE.
  253. Sad, but true, I used all bad news on me as an advantage to maneuver and
  254. engage the opposing force. And to those who loses out in the end are usually
  255. my haters because they are the ones that are arrogant and acted late.
  256. People in my private channel knows how I trade and usually holds even
  257. though prices are being suppressed or shakeouts by me. It is usually the
  258. people without patience that lost in the end game.
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