AI P Junior Advanced Guide: How DeFAI Reshapes the Trading Experience

Original title: AI Trading with DeFAI: Welcome to the Next Era of On-Chain Automation

Original author: @danielesesta, defai researcher

Original translation: zhouzhou, BlockBeats

Editors note: DeFAI of the future has completely changed the way DeFi is traded, using AI to convert simple text instructions into executable on-chain strategies. Whether it is DCA, stop-profit and stop-loss, or volatility management, the system can execute accurately without manual operation. It makes complex trading strategies simple and easy to use, allowing ordinary users to enjoy hedge fund-level tools, truly realizing set it and forget it.

The following is the original content (for easier reading and understanding, the original content has been reorganized):

One of the major criticisms of decentralized trading is that it lacks mature trading tools compared to traditional finance and even top centralized exchanges. In the past, DEX traders often needed to stare at the screen at all times, ready to click buy or sell at any time, and the means of automation were extremely limited, and even the basic stop-loss mechanism was not intuitive enough to implement on the chain.

DeFAI (AI + DeFi) and Hey Anon were born. These platforms use AI-driven intelligent agents to implement complex condition-based trading strategies without human intervention. Ultimately, users can enjoy advanced functions that are comparable to or even exceed those of centralized trading platforms, truly bringing automated trading, risk management, and conditional trigger logic into the world of decentralized trading.

Limitations of existing decentralized exchanges

• Limited tools and interfaces: Although DEX is developing rapidly, it still lacks the advanced functions of centralized exchanges. Even if limit orders are provided, the operation is relatively cumbersome, and advanced trigger mechanisms such as trailing stop loss, ATR calculation position management, and tiered DCA (fixed investment) are basically missing.

• Highly dependent on manual operation: Traders often need to keep a close eye on the market in order to execute entry and exit or partial profit-taking operations in a timely manner. If you leave the screen and miss the opportunity to sell, you can only blame yourself.

• Insufficient risk management: Most of the current risk control methods remain at basic operations such as manually setting stop loss or reducing positions. However, the real market, especially meme coins or newly launched tokens, is volatile and liquidity changes rapidly, requiring a more sophisticated risk response mechanism.

These issues make it difficult for many users to fully engage in decentralized trading, even though the permissionless nature of on-chain transactions offers great autonomy, innovation, and global participation.

DeFAI: Subverting the rules of the game for decentralized transactions

DeFAI combines AI logic with DeFi smart contract interaction. The architecture built by Hey Anon can:

1. Automatically execute on-chain transactions based on conditional events without manual intervention;

2. Allow ordinary users to easily create complex AI trading strategies through simple natural language instructions (such as If Y happens, buy X);

3. Integrate advanced risk management systems to reduce the operational threshold and potential risks of DEX transactions.

This change will bring unprecedented intelligence and convenience to decentralized transactions.

From instructions to executable on-chain strategies

One of the most notable features of Hey Anon’s AI architecture is its ability to translate simple English instructions into actual executable on-chain operations. Instead of switching between multiple interfaces or writing custom scripts, traders can simply describe their strategy in one sentence, for example:

“When Coin A makes 50% profit, sell half of it, set a trailing stop loss of 2 times ATR for the remaining part, and exit all of it when the increase reaches 300%.”

AI agents automatically handle every step, from price monitoring to trade execution and even cross-chain operations, streamlining the entire process.

Advanced tools at your fingertips

1.DCA (fixed investment) buying strategy

Regular investment is a proven investment method, but decentralized platforms have always had limitations in automation. Hey Anon provides the following regular investment methods:

• Fixed time interval: Buy $50 of Token Z every 4 hours.

• Price trigger: If price retreats 10% from previous high, buy an additional 10%.

• Volatility-based fixed investment: When volatility exceeds the set threshold, the frequency of buying is accelerated to capture lower prices when it falls.

• Portfolio-based fixed investment: Use 2% of stablecoin assets to purchase new memecoin every day, but only for tokens with liquidity exceeding a set threshold.

These trigger mechanisms reduce the uncertainty of manual operations, and the AI agent monitors the market 24/7 to ensure that no trading opportunities are missed.

2.DCA (fixed investment) selling strategy

An orderly exit from the market is also critical. Hey Anon provides a variety of smart ways to sell:

• Price target trigger: Sell 25% at +50%, sell another 25% at +100%, and sell the rest at +200%.

• Trailing stop loss fixed investment: Automatically adjust the stop loss range according to the volatility of the token and sell it gradually.

• Sell in batches over time: When the target profit is reached, sell in batches within a fixed time (such as within 1 hour) to reduce slippage or price shocks.

3. Risk management and advanced strategies

Risk management is critical in volatile on-chain transactions. DeFAI provides advanced risk control features:

• Dynamic position adjustment:

“If the ATR (average true range) doubles, reduce your position by 50%.”

“Increase positions when market volatility converges and liquidity is healthy.”

• Kelly Criterion:

Calculate the optimal capital allocation ratio based on historical win rate and expected risk-return.

• Time/Event Based Exit Strategies:

“Close 30% of your position 10 minutes before the Fed announcement.”

“If a token is listed on exchange X, sell it linearly over the next 5 minutes.”

4. Liquidity monitoring:

“If daily volume falls below 30% of average, or buy slippage exceeds 5%, stop buying.”

Imagine you have a strategy like this:

“Monitor the token $X and invest $69 every 420 seconds. If the price retraces 80% from the previous high, buy every 69 seconds until the position reaches $6,900. Initially set a trailing stop loss of 0.5 times ATR, and if it enters a profitable state, expand it to 2 times ATR. Sell the initial principal when the profit is 120%, and liquidate all positions when the profit is 300%. If the ATR doubles in the profitable state, reduce the position by 30%. If the token is listed on exchange Y, sell it linearly in 69 transactions within 5 minutes.”

In traditional environments, executing such strategies requires manual monitoring, setting a large number of limit orders, or relying on third-party robots (which often have trust or reliability issues). But in Hey Anons DeFAI system, these operations can be completed through a simple conversation, and the AI agent will automatically convert each condition into a series of on-chain execution actions.

Reinventing decentralized finance

The impact of this AI revolution in the DeFi field cannot be underestimated:

1. Say goodbye to the constraints of screen monitoring. Traders can define strategies and let AI handle buying, selling and risk management without having to watch the market all the time, and get rid of the high-intensity monitoring of the memecoin or altcoin market.

2. Popularization of advanced trading tools. Technologies that were previously only available to hedge funds (such as volatility-based position management or the Kelly formula) are now available to ordinary users, greatly lowering the entry barrier.

3. Unleash your trading creativity With just one command, you can combine cross-chain operations, token sniping, partial profit taking, event-driven adjustments, and even overlay strategies across multiple tokens – the only limit is your imagination.

4. Create a safer trading environment Through strict risk management, we can reduce the number of liquidations and fund zeroing, and promote the development of a healthier ecosystem even in the high volatility environment of new currencies.

Looking to the future: endless possibilities

DeFAI is not just a few advanced triggers or a better user interface, but a paradigm shift. The entire system is driven by on-chain code and AI logic, strictly executes the instructions set by users, and has the potential to evolve:

• Integrate basic data (such as GitHub project updates or social sentiment) into triggers.

• Provides high-level analysis similar to that of professional research institutions, combining advanced data analysis with direct execution capabilities.

• Scale to multi-token or cross-chain strategies, bridge liquidity across multiple ecosystems, reinvest returns, and automatically manage gas fees and cross-chain complexity.

The wave of innovation has begun. The future of DeFi may be an integrated ecosystem fully controlled by AI agents, covering everything from yield farming to token issuance to complex derivative strategies – without users having to manually confirm each step or switch between multiple dApp interfaces.

Hey Anon is at the forefront of this DeFAI revolution. With security, clarity, and intuitive AI trading instructions at the core, we are ushering in an era of unprecedented automation in the DeFi space.

Conclusion: Imagination is just the starting point

The era of watching the market 24 hours a day and manually trading at 2 a.m. is coming to an end. We are standing on the threshold of on-chain AI trading, which can:

1. Monitor the market

2. Calculate the risk

3. Perform operations on your behalf with extreme precision.

From advanced staking strategies to sophisticated volatility risk control, DeFAI makes “set it and forget it” a reality — even in the chaotic memecoin and new token markets.

This is truly revolutionary because it makes decentralized trading open to everyone – from beginners who just want a safe and stable strategy to experts who are conceiving multi-condition, multi-asset trading solutions. The best part? You can create completely new ways of trading with just your imagination and simple natural language commands.

Welcome to the Hey Anon era — AI-enabled trading, allowing any user, regardless of experience, to leverage advanced automated strategies, turning DeFi into a world of limitless possibilities.

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