Crypto strategy terms, defined straight
Short, jargon-free definitions for the words used across these lessons. Where a term has a lesson behind it, the entry points to the page that develops it.
The vocabulary, defined straight
Crypto trading strategy
A written rule set that decides which trades to take, how to size them, and where to exit, applied the same way every time so the results can be measured and verified.
Mean reversion
The tendency of a price stretched far from a typical level to drift back toward it; the engine behind most testable, rules-based strategies. See: how the method works.
Don't trust, verify
The crypto principle that a claim should be checkable rather than taken on faith - applied here to a trading record, not just a transaction. See: proof you can check yourself.
On-chain anchoring
Writing a hash of something to a public blockchain so the moment it existed, and its exact contents, can be confirmed later by anyone. See: proof you can check yourself.
Cryptographic timestamp
A fingerprint of a call committed to a public chain at publication, proving its entry, target, stop and grade existed in that exact form before the outcome was known. See: how to verify a strategy.
Entry rule
The specific, pre-decided level or condition at which a strategy opens a position, rather than a vague 'around here'.
Stop
The pre-decided level that admits the idea was wrong and closes the trade to cap the loss, fixed before any emotion is attached to it.
Target
The pre-decided level at which the expected move is judged complete and profit is taken on plan rather than on nerve.
Position sizing
Choosing how much of the account a single trade may risk, so no one position can do outsized damage. See: crypto trading risk management.
Conviction grade
An A-to-D label marking how strong a call is relative to its own model's measured return distribution; there is no E grade. See: rules and grades that hold up.
Drawdown
The deepest peak-to-trough fall in an account or strategy over a period - a more honest read on risk than the headline return. See: a record with a real denominator.
Win rate
The share of trades that closed profitably - meaningful only with the total trade count and the average loss shown beside it. See: a record with a real denominator.
Systematic strategy
A strategy whose rules are fixed in advance and applied mechanically, so its record reflects the rules rather than the trader's mood on the day.