Richard Fetyko on Scanning, Analyzing, and Trading Altcoins on altFINS (Episode 222)
altFINS benefits Today Richard Fetyko joins us to discuss how you can scan, analyze, and trade altcoins on Alfins.
Richard is the founder and the CEO of altFINS. Previously, he worked 14 years on Wall Street in Equity Research at several investment banks such as Janney Montgomery Scott, ABR investment strategy. His research focused on Internet tech and media sectors and among his clients were asset managers in the U.S. He intends to bring his financial, analytical and trading experience into the crypto asset market.
Project altFINS began out of frustration with a lack of high-quality tools to find trading ideas, create alerts, execute trading strategies, and monitor portfolio performance across exchanges. Richard decided to change it and started the project altFINS, the platform that enables coin screening and analysis using traditional technical analysis as well as alternative on-chain data, and trade execution across exchanges. The combination of trade idea discovery and trade execution is truly unique in the crypto trading space.
The following transcript was created using artificial intelligence. There will be some grammatical errors below.
00:01:12:17 – 00:01:31:28
Richard Carthon: Hello, everyone, welcome to another episode of cryptocurrency, your host here, Richard Carthon, and today I have a special guest all the way out in Slovakia working on an amazing project called Orphans that’s going to help you in so many different ways, and he’s going to have to explain how this as it relates to trading. We have Richard, how are you doing today? An amazing name, by the way.
00:01:33:16 – 00:01:35:27
Richard Fetyko: Thank you. Thank you, Richard, for having me on as well.
00:01:36:22 – 00:01:44:24
Richard Fetyko: Of course, man. Well, before we dive too deep into this first, we’ll learn a little bit more about you. Give us a little bit of background about yourself, right?
00:01:45:24 – 00:02:26:09
Richard Fetyko: In a nutshell. I spent about 14 years on traditional finance at a Wall Street. I worked in New York City as an equity research analyst, so basically I worked for brokerage and investment banks. Analyzing technology companies are writing research reports and recommendations that were then used by our clients. And our clients were hedge funds, pension funds, mutual funds, family offices and these are research reports would basically help them construct their own portfolios and begin and select the technology companies that they wanted to have in their portfolios.
00:02:26:18 – 00:03:02:18
Richard Fetyko: So these were these were our clients, and then I did that for several different sort of mid-tier investment banks in my career. And and then last sort of seven careers outside of crypto. I spent running a family office for ultra high net worth individual here in Slovakia helped to get to diversify his portfolio because he made his money in commercial real estate, but wanted to diversify outside of that. And so he was setting aside some money to invest into stocks, publicly traded companies worldwide.
00:03:02:20 – 00:03:29:04
Richard Fetyko: And so I helped him to manage that process and put together a portfolio that would that would a composite of the companies that write some secular trends in in digitalization and e-commerce and things like that. And and then so, you know, that was the last seven of the of my traditional finance career, let’s say. And then and then I went down that crypto rabbit hole.
00:03:29:16 – 00:03:50:09
Richard Carthon: So let’s spend some time on that. So you have a ton of experience just in the traditional trading world, and it’s very fitting that you’re now working on a crypto trading platform and providing some unique tools to help your everyday retail trader. But before like getting into that, like how how did you first learn about crypto? And like what made you decide to go and dive in into the space?
00:03:51:00 – 00:04:23:22
Richard Fetyko: Sure. Yeah. So I caught the bug in 2017 as as many of us maybe did. And during the ICAO craze, I mean, shortly before that, I slowly started noticing the discussions and and the trends around bitcoin, particularly obviously in the beginning. And then the whole ICAO bubble exploded. And at first, I was very skeptical, of course. And then I started dabbling in trading some of the early cryptocurrencies.
00:04:23:24 – 00:04:59:13
Richard Fetyko: The list was a lot shorter than it is today. And then quickly I I basically realized that there was a lack of tools in this emerging digital asset class, a lack of robust tools that I was used to using as an analyst in the traditional finance world. And those tools will allow me to track the digital assets, but also do certain kinds of analysis, trend analysis, momentum analysis that helped me basically trade these digital assets.
00:04:59:24 – 00:05:31:12
Richard Fetyko: And because the the the world of the crypto assets are so fragmented in terms of where they trade on various exchanges and also the information they need to collect about these projects behind the cryptocurrencies news and so on. This fragmentation just created a big problem for me, just personally trying to trade these things that they decided that I needed to just build a tool initially for myself.
00:05:31:14 – 00:06:09:23
Richard Fetyko: And then and then really for anyone in my in my shoes as well. And it turns out there’s millions of retail traders that struggle with that as well. And so we what will we with a group of developers set out to do in 2018 and and basically create a tool that helps us again stay on top of the the crypto trading and crypto sort of pricing and analytics to help us determine and make some decisions about what should I be buying or selling today? And that’s going to, you know, the frustration that I had is that there’s a lot of tools, a lot of Abu.
00:06:09:28 – 00:06:11:05
Richard Fetyko: Stations and
00:06:12:25 – 00:06:57:15
Richard Carthon: service providers, they’re really focused on just the execution, you know, there’s exchanges, there’s apps that allow you to buy and sell crypto. Maybe they have a great liquidity. Maybe they have a really cool user interface. Easy one. Maybe they have, you know, low commissions, but that’s all the grade. But but I struggle with, OK. But what should I be buying? Which acid is trending up or down? Which one is in momentum, which is gaining momentum, losing momentum? How can I create? What tools can I use to create a strategy or some kind of a framework around my investment decisions? And so the pre-trade analysis is where Alf-Inge is really focused on.
00:06:57:17 – 00:07:07:21
Richard Carthon: It’s not the execution of the trade that’s, you know, let’s call it easy, but it’s really the pre-trade analysis where we try to add a lot more value with the tools that we’ve created.
00:07:08:12 – 00:07:24:09
Richard Carthon: So let me go back in and analyze some of that. So you get back in to crypto around 2017, you realize there’s not a lot of tools to kind of prepare you to get more information before you even get into a trade. And so you start to work with a couple of developers figuring out some algorithms, other types of
00:07:25:29 – 00:07:58:10
Richard Carthon: tools and indicators that you could use to determine when we’re good times to potentially get to into a trade it and whatnot. And honestly, from a timing standpoint, if you got in in twenty seventeen, that means you also probably got in the top around 2018 and then got into the nice bear market that we’re in for roughly two years. And now I’ve been in this nice bullish cycle. So I think true traders are made during bearish times and things get a little bit easier doing bullish times, but all the same to be able to create a tool and refine a tool that helped you find still ways to make money during that bearish time.
00:07:58:27 – 00:08:06:08
Richard Carthon: Can you talk kind of talk to that? Like what we all ultimately have to be able to help create that has been able to help traders who are on your platform?
00:08:07:18 – 00:08:40:23
Richard Carthon: Yeah, I have to say in the first two years, as you mentioned during the crypto winter, sometimes I question myself was, was I crazy to leave the cushy finance world to get into this? But I had always had this urge to create something, something, you know, sort of tangible, if you will, even though this is all, you know, cloud based software that you can’t necessarily touch. But but yeah, I mean, the the platform allows traders, of course, things a lot easier when a bull market
00:08:42:18 – 00:09:18:09
Richard Carthon: and and tough in the bear market. But with this tool, traders and what we try to also teach and we’re launching an education class on that, but we try to create or give the traders the the tools to detect the trend because the trend is sort of the most important one. If you if you kind of correctly identified the trend, you’re sort of 50 percent there. And then a few other things can also increase that probability of success. And so our tool actually has an automated trend rating system on the short term, medium and long term basis.
00:09:18:24 – 00:09:51:08
Richard Carthon: And that, you know, helps you sort of determine, OK, is this coin in an uptrend? Is it in a strong uptrend or is it a lukewarm medium trend uptrend or is it going sideways or is it going down right? And and so just based on that trend alone, traders can can narrow down thousands of the digital assets to those that are trending up. If you want to go along or if they’re trending down and you’re a little more advanced, then you can actually short them as well and make money on the short side.
00:09:51:20 – 00:10:32:18
Richard Carthon: And if know, we also try to devise a teach fund how to kind of have a bit of a balanced portfolio. Some longs where you have a big bet, but also some shorts on on the coins that are exhibiting a downtrend and bearish momentum. And so that’s what the tool allows you to do is if there is a bear market, I mean, there’s first of all, always coins. As we say, there’s always a bull market somewhere. So there’s always coins there are going up. And so searching through the thousands of thousands of digital assets with our tool allows you to find that, you know, the few coins that are still going up no matter what happened to the market at the moment.
00:10:33:03 – 00:11:06:22
Richard Carthon: But but even when there is a bear market, you can you can then use this tool to find those coins that perhaps you should be shorting, or perhaps those coins that have. We also detect patterns. So certain patterns, like recently, we had a lot of falling wedge patterns that were broken up bullishly, and those tend to be reversal patterns as well. So those are also potential signals for traders to do. Find coins there perhaps sort of could be turning around their downtrend.
00:11:07:04 – 00:11:39:08
Richard Carthon: And so there is a myriad of the. Rules. But of course, at the end of the day, it is up to the user, so we’re not necessarily signal providers like, Hey, you got to buy here, you going to sell here? It’s still just a tool that the user has to learn how to use and then use some of their own knowledge. And also and then we have a very extensive knowledge base that helps you basically work up your knowledge as well on how to use these indicators and tools to improve your trading hit rate and success rate.
00:11:40:00 – 00:12:09:21
Richard Carthon: That’s awesome. And something else that I think is really important I want to bring up for a second is the importance of education. So a lot of people entering the crypto space, I would say, are investors, not traders, and they think they are traders and they get wrecked. But if you are trying to become a trader, you need to be able to have resources and tools that can help you succeed. And it sounds like old friends would be a great option to do that. So for the person who’s an investor who’s looking to become a trader, how would they be able to come on old friends and start utilizing some of the different tools that you have?
00:12:13:25 – 00:12:41:21
Richard Carthon: Hey, cryptocurrency, true, this is Steve Miller, and I’m the host of CSI Live show that keeps you up to date with what’s popping off in crypto land. Every episode of CSI Live brings you the latest news, keeps you updated on the top projects in decrypts everything you need to know to get ahead in the wild world of Web3. So if you really want to stay cryptocurrency, join Richard, Chris and I every Tuesday and Friday at seven p.m. Eastern, only on YouTube Live. So what are you waiting for? Subscribe to cryptocurrency YouTube channel today and as always, stay cryptocurrency
00:12:43:14 – 00:12:43:29
Richard Carthon: for
00:12:45:24 – 00:12:46:09
Richard Carthon: sure.
00:12:46:15 – 00:13:31:05
Richard Carthon: Yeah, and you made a great point about the importance of the education. And then honestly, even we underestimated it and just recently have announced the launch of the education program because we do realize that there’s a lot of novice individuals trading or investing in cryptocurrencies, and they and they are eager and interested in boosting their knowledge base, and we’re happy to help them with that so that the platform is is a freemium business model and that there’s a lot of content features where really the user can come to the platform and register for free and already has access to all the tools and all the features with limited sort of limited amount of content.
00:13:32:21 – 00:14:08:17
Richard Carthon: But but enough to get familiar with it and start using it honestly from day one for trading and investing. And then if they feel like they’re ready to to take you to the next level, have, you know, have more or more search results for the screener that we have and other things that they can so they can purchase one of the subscription program subscription plans that we have as well. But again, I think I encourage everyone to create a free there’s no cash free registered account and start using it from day one.
00:14:09:11 – 00:14:33:24
Richard Carthon: And I think they’ll, you know, they’ll make a determination that this is something for them because trading isn’t for everyone, to be honest. And and so you kind of got how you get a good feel for for what you’re getting into before subscribing. But I think you’ll find a pretty robust set of tools and content and a knowledge base to help you along the way along the journey.
00:14:34:17 – 00:15:08:23
Richard Carthon: And that’s great. And I think it is important to be able to test something before you fully go in and to realize if if the trading life is for you because it is very much a all encompassing, especially with crypto, the things always going on and never turns off. And so you have to kind of be on and you have to really have a want to constantly be on to to do that. And so it’s cool that you have a way to ramp on trial some of the tools and then be able to scale in and start using more of that. So another thing that I kind of just want to bring up for a moment is for people who are looking to start trading.
00:15:08:27 – 00:15:17:09
Richard Carthon: What are some of the tips that you can give and get them in the right direction before they wreck themselves before they even start?
00:15:18:04 – 00:15:54:27
Yeah, so so first of all, I’ll mention that our platform is not necessarily targeted at day traders per se, but more of individuals who are looking to trade with a longer time horizon. So OK. Because there’s various different trading styles, right? And indeed, trading is like you really in and out or trades within within one single day. That’s not what we are, what we’ve built here, but really trade and investment that can last days or even weeks is the time horizon.
00:15:54:29 – 00:16:29:17
And I think that that’s really more appropriate for a person who has a full time job and wants to also on the side, trade some cryptocurrencies. You know, he’s not a full time trader. Having said that, the tips so. Early start with small positions, many small positions, Don, but the barn on one coin, because you see an interesting trend or you’ve heard something from a friend, right? You really gotta spread it off, spread out your bets because trading is probabilistic, meaning
00:16:31:06 – 00:17:03:24
Richard Fetyko: even with the best of indicators and tools, let’s just say you can reach maybe 70 percent hit rate, right? 70 percent of your trades will go in your favor. That means that you still have a 30 percent that will go against you. So you really need to achieve these statistics. You really need to do tens or even hundreds of trades so that the statistics, the success rate of 70 percent will play out. Because if you only do 10 big trade, the statistics don’t really work.
00:17:04:12 – 00:17:36:29
Richard Fetyko: You really need a lot of small trades, right? So and you shouldn’t ever be bad more then than in the end about two percent of your portfolio. Or you shouldn’t be in a position where one position will will lose. More than two percent of the portfolio is kind of the cardinal rule. So that ends up that may really mean that you need tens of different positions and so you need some consistency there. Stick to those sort of trading strategy rules that you’ve created. Always trend trade with a trend, especially for novice traders.
00:17:37:01 – 00:18:21:02
Richard Fetyko: I mean, some advanced traders can kind of do some swing trader trading against the trend and just try to squeeze out every that little switch or change in momentum. But for novice or even intermediate traders, it’s really advised to go with the trend. So if the coin is trending up, it’s OK to buy it if the trend is trending down. Don’t be buying it even on some momentum swings. And then the risk management that I mentioned in in terms of the position sizing in terms of just the mental toughness as well, you’re going to have losers and you want to set the stop losses, some some reasonable distance.
00:18:21:04 – 00:18:57:29
Richard Fetyko: And that’s a little bit of art and science in, you know, where do you take your last? You don’t want to take it too early because you’re going to give you your positions and your bed some space to to to in this volatile asset class, some space to to go against you and have time to maybe work in your favor. But then you get to sort of cut your losses, you know, so you get to be able to sort of set your stop loss at a reasonable place, and that’s something that we also teach in the class.
00:18:58:01 – 00:19:29:04
Richard Fetyko: So those are the things, you know is the is the trade size, do a lot of small trades trading with the trend, you stop losses and and when you do and when you use small trades, it’s also psychologically better because when you make big bets, you can easily get all worked up about a one that’s not going in your direction, but you’ve got 10 or really more than 20 30. Then let one or two going against you is that it’s not going to it’s not going to make you question your strategy, right?
00:19:29:21 – 00:19:59:28
Richard Fetyko: I think you have a lot of good nuggets in there. I think diversification is a good one. The two percent rule, I think, is awesome as well. And even the concept of as you initially get in this, you’re going to lose, you’re going to lose some money and like that is OK. It comes with learning, but you learn from that and you learn to once you develop a strategy and you develop a rule set for yourself, you learn that usually once you go against your own set of rules, that typically doesn’t work out well for you. So you just start learning yourself.
00:20:00:00 – 00:20:32:12
Richard Fetyko: You start getting used to when things are looking better, when they’re looking good, when to take profit, when to stop your losses and have a lot of that set up. So you’re not again constantly stressed and constantly thinking of what was going on in my portfolio, right? Because that’s a very easy try to get caught up into, and I’m sure a lot of the crypto listening to this right now. Stephanie understands that sentiment and what that feels like, so I definitely appreciate that. And you know, I know you have a pretty big announcement that’s coming out for old friends. I believe you have something that’s about to drop, so you want to share that.
00:20:33:19 – 00:21:07:23
Richard Fetyko: Yeah, we are actually launching our own token. In an October, November timeframe. And it’s really intended to be billed as a reward program for the existing users. And if we’re using the platform for learning how to use the platform as well as promoting it and enhancing and there’s going to be opportunities for our users to contribute to the platform in form of content and form analysis or form of analysis and sharing their custom filters that they may create and so on.
00:21:08:02 – 00:21:49:27
Richard Fetyko: So we want to sort of reward the community for all these activities. And and and also there’s going to be for the token holders access and availability of deeper discounts on subscriptions as well. So if you take the the token, you’ll be able to also get access to our platform at a much cheaper price as well. So, you know, it is all intended to basically grow our community, grow our user base, which should in in in turn, add and create more utility of the platform itself, which should then again benefit the user base as well.
00:21:49:29 – 00:22:07:18
Richard Fetyko: So it’s a bit of a flywheel effect that we think we can jumpstart with the token. And so, you know, keep an eye on the announcements. You know, come to our website and subscribe to our for additional sort of token sale details that we might be announcing as we go along.
00:22:08:08 – 00:22:25:24
Richard Fetyko: Excellent. Well, thank you for sharing that and fearfulness and make sure you go check that out. But I’ll tell you what, Reg, as we wrap up here again, you’ve given us a lot of information, but I always like to wrap up with two fun questions. The first is with all the information you have right now, if you can impart one or two pieces of wisdom when you first got started in the space, what would you tell yourself?
00:22:27:24 – 00:23:05:29
Richard Fetyko: I would certainly avoid, you know, following into into coins that are ripping and everyone talking about it, OK? But you know what? By a small piece. So you you’re you’re you’re in there with that conversation, but don’t don’t bet the farm. Don’t let the farmer, Anthony, no matter how you guys condition you, have you going to stick to that, you know, size of because it just really honestly, you don’t know when when that particular project may get hacked or whatnot and the token price will get will get slashed.
00:23:06:01 – 00:23:51:15
Richard Fetyko: So don’t. So that’s that’s the one piece of advice that I learned really in my career all along, but certainly in the crypto and crypto world, I get excited about a project, and I think you should allocate more of my portfolio to that because of a higher, higher conviction. But but there has to lose sleep over it. It’s just like, OK, it’s not worth it. So it’s just stick. Stick to that diversified portfolio, as you mentioned, don’t fall more into it. It’s okay to buy, but buy in the small portion. And I think that’s the most, most critical piece of advice is there is the risk management and diversification start small start with the money that you don’t sweat sweat about, even if you lose all of it per se.
00:23:52:00 – 00:23:52:15
Richard Fetyko: Yeah.
00:23:52:24 – 00:24:10:17
Richard Fetyko: So again, to really good lessons, don’t follow in. And if you do, don’t bet Farm Bill a little bit and just say you’re involved. And the second is to diversify, diversify, diversify, diversify. That’s going to be the word of the day. Diversification so rich as we wrap up here, what is a final thought that you want to leave with all the listeners here today?
00:24:13:00 – 00:24:51:02
Richard Fetyko: Yeah, just just the fact that you listening to this podcast shows you that you are aware of the game, the congrats on that. Keep, keep learning, keep you know, and allocate allocate a portion of your personal wealth to to this digital asset class again. Don’t bet the farm. You know you get your investment into the house. You own some stocks and whatnot. But I think that up to five 10 percent of your personal wealth being in digital asset class is as wise and and you do it the way you feel comfortable.
00:24:51:04 – 00:25:13:18
Richard Fetyko: So if you don’t have the time to be trading and paying attention to the positions, then just hold a few major ones or not for you that big 10 20 and hold them. And if you feel like you can add more value, add performance to your portfolio than certainly, you know, dig in and check out outfits because I think we we can help you with that.
00:25:14:08 – 00:25:19:25
Richard Carthon: Excellent. Well, thank you for that final thought. What are ways that people can connect with you and learn more about outfits?
00:25:21:08 – 00:25:44:26
Richard Fetyko: Happy to answer questions. We have a chat line right on our website as well as the platform itself. And you can also drop us an email at Invest at Oldfield’s dot com. I’m happy to answer those questions. We also have a Telegram channel, so check out check us out on Telegram under our fans, and I think that’s and Twitter as well. Awesome.
00:25:45:09 – 00:26:25:11
Richard Carthon: Well, again, Richard, thank you so much for spending some time with us and for everyone listening. Stay cryptocurrency. Hey, cryptocurrency crew, we want to give a quick shout out to all of our faithful listeners out there. It’s been an amazing journey and we really appreciate your support throughout the years as we’ve been growing as a community. Each episode, we decided that we would start sharing some of the reviews that you were leaving for us for today. We would like to share this review. Today’s review comes from just a sapient. Cryptocurrency is a valuable resource to learn about crypto and all the builders in the blockchain space. Keep up the great work. We sincerely appreciate this review and all reviews and would like to ask that if you’re enjoying our show, please take a quick moment to go and leave a review on our podcast so that hopefully we can be highlighting your review next.
00:26:25:27 – 00:26:56:03
Richard Carthon: Simply go to our show notes or go to our website where we have a link, where you can share your review today. Hey, everyone. Hope you enjoyed today’s episode. For more information on today’s episode and all of our episodes, please visit us at WW W Dot Crypto Dash. Current, not CEO. You can also find a link in the show notes. Want to stay up to date on the latest news in cryptocurrency? Sign up for our newsletter today. You’ll receive daily emails Monday through Friday that are personalized and curated content specific to you and your interest.
00:26:56:11 – 00:27:26:27
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00:27:26:29 – 00:27:29:17
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00:27:35:09 – 00:27:44:07
Richard Carthon: Thanks for tuning into another episode of cryptocurrency with Richard Condon’s. We’ll be back with more exciting developments from the world of blockchain and cryptocurrency next.
00:27:45:06 – 00:27:48:06
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