Author: Taiki Maeda, founder of HFA Research; Translated by: Felix, PANews
Many people know Darryl as @0xENAS on Crypto Twitter/X, where he shares trading tips and market insights every month. He is one of the best crypto traders, but his journey has been a bumpy one. After almost going bankrupt in May 2021, he was able to become an investor and built one of the most prestigious funds in the field. Recently, Taiki Maeda, founder of HFA Research, conducted an exclusive interview with trader Eugene Ng Ah Sio, and the following is the transcript.
For those who are not familiar with you, can you share what you are doing now?
I co-founded a multi-strategy investment company Tangent, where I focus on liquid markets and my partner Jason is responsible for venture capital. I was previously the head of Defiance Capital and entered the crypto field as a retail investor in 2020. I have grown a lot since then.
You are now a very successful trader, but it seems that you have had some hiccups in 2021. Can you share your mistakes and what you learned from them?
In early 2021, I was not risk-averse and used leverage aggressively. I took profits in February, but re-entered in March and failed to avoid the market crash in May. Due to excessive risk exposure and buying on the dip with leverage, I suffered an 80% drawdown at the worst time and was forced to deliver core leveraged positions at the low point. It was brutal, but taught me the most important lesson: survival comes first.
I chose to stop losses and start over. A major mistake was over-concentration in positions in a single DeFi protocol, which did not recover after the market downturn. No matter how strong my convictions were, that loss made me realize the need for diversification.
The key is to stay at the table. No single trade should make you bankrupt. Adaptability, risk management, and learning from mistakes are the keys to long-term success. Even to this day, minimizing the risk of bankruptcy is the most critical factor we address when determining position sizing.
How did your trading style evolve?
It started with understanding how to position — looking for asymmetric opportunities with huge upside potential. The harder part is identifying in real time. It comes from experience, trial and error, and developing instinct.
For me, crypto trading is still instinctual. When I see a new opportunity, I usually get a hunch within minutes, and over time I know that my initial hunch is usually correct. Looking back, I try to analyze what triggered that instinct — what specific factors gave me confidence in an investment. This pattern tends to repeat. While the market is constantly evolving, the biggest winners often have similar characteristics.
How do you deal with the psychological aspect of trading?
It's a huge challenge. In a 24/7 trading market like crypto, it's a constant battle against greed, fear, and the feeling that someone is going to abandon you. Keeping a clear head is essential, and I sometimes even stopped trading completely for two or three days to adjust.
One of the key lessons I learned is that you can't catch everything. You have to accept the reality of missing some opportunities. I stick to my area of expertise. Recognizing your strengths and ignoring distractions is essential for long-term success. As GCR once said, "He who chases two rabbits catches neither."
What do you think about bet sizing?
I believe in concentrated positions. At times, 80% of our portfolio is invested in the top 3 ideas. The key is to align your portfolio with your most confident bets, making sure the size matches your convictions. Of course, this also means that you need strict risk management to avoid huge losses.
How do you deal with the internal struggle of wanting to be risk-averse but also wanting to get huge returns?
It's a difficult problem. In the first cycle, I took huge risks, such as investing 80% of my net worth in a single asset. Although it may seem ridiculous in hindsight, this boldness paid off hugely. Now, as a second cycle investor, I am more cautious, but I still ask myself: what made me make those big moves before, and how can I replicate that now without being reckless? The challenge is taking risk without losing my previous convictions, while still being realistic about the volatility of the market.
You put 80% of your net worth into AVAX in 2021. Looking back, would you make the same decision again if you had the chance?
That’s a hard question to answer. In hindsight, it seems ridiculous, but that risk has earned me significant compound returns. Today, I ask myself if I could do the same thing again. As I have matured, I have become more aware of risk, and have a completely different set of systems and frameworks to prevent myself from making big mistakes. Back then, I was naive, and I think that mentality played a huge role in my success in the last cycle. It’s important to be aware of the risks, but it’s also important to dare to dream when the market presents you with an opportunity.
So, are you saying that you are more cautious in your investment approach now, but you would still take the same degree of risk to achieve excess returns?
Exactly. Even though it can feel daunting, it is critical to make large, concentrated bets. It’s hard, but that’s where the best cycle returns come from. You have to be willing to take those risks, even if they make you uncomfortable.
It sounds like you’ve developed a lot of disciplined habits over the years. Can you share an example of a bad trade you made and what you learned from it?
I’m only human and I make mistakes all the time. The most recent one that sticks out to me was when I went long SOL at $210 and didn’t stick to my $200 stop. The most important lesson in trading is to set a stop and stick to it. Once you’re careless, the mistake can be much more dangerous and you risk far more than you planned to risk at the beginning of the trade.
What do you say to yourself then?
I would ask myself, “If you sold your entire portfolio today, would you buy back the same assets in the same proportions?” Most people realize they wouldn’t, but they still hold on to bad positions out of obsession. Additionally, opportunity cost is important - every dollar in an asset is a dollar not invested somewhere else.
Another thing is to avoid the "make it all back in one trade" mentality. It's a common trap. Don't trade on revenge, but focus on accumulating small wins.
How do you know when to lighten up?
This is the hardest part. A lot of people hold on to losing positions because there's an emotional attachment, or simply hope that things will get better. But the key is to be honest with yourself. If you've reassessed your view and things haven't improved, then it's time to move on ("cut your losses"). This is a dilemma that a lot of retail investors face.
How do you make sure your biases don't cloud your judgment?
Having a team definitely helps. At my company, we make everything transparent, so when I do something questionable, people can point it out. Accountability keeps me in check. We do rigorous and often brutal post-mortems on every major decision we make, and we encourage everyone, including new hires, to actively point out more "senior" members of the company in a brutally transparent way. There is no room for ego in the market and it is crucial to build a team that is committed to radical honesty and not emotional. If you are on your own, find someone to share your position with and get feedback. It helps to mitigate emotional decision making.
So, does accountability play a big role in staying focused?
Absolutely. Having a team or a trusted person to discuss trades with ensures that you are not in the dark when things go wrong. If a mistake is made, it is important to accept it and move on, rather than digging yourself deeper into the hole. Accountability prevents you from making more mistakes.
For participants who are looking to find a group or friends they trust, what do you recommend they do?
A lot of alpha has moved away from Crypto Twitter/X and into Telegram and Discord communities. Twitter/X is a great platform to build a network presence and share ideas if you are just starting out, but today I prefer Telegram as the main communication medium.
What traits do successful traders have in common?
Successful traders are good at handling pressure and can calmly make decisions when things get volatile. This is not something that can be learned easily - it is an innate skill. If you have it, hone it. If not, recognize it and don't force yourself into high-pressure situations. It is crucial to recognize where your strengths and weaknesses are and choose your positions accordingly.
What are the most common mistakes traders make?
It is common to see people start to daydream before things have even happened. This happens when people get caught up in the idea of "success" because their portfolio has grown and they start to make major changes to their lifestyle. They think the money on paper is real money and they go out and buy things they don't need, like an expensive car or luxury watch. But the reality is that unless the money is in a bank account and taxes are paid, it is just points on a scorecard. I always look at cryptocurrency this way - it is a game and it is not real money until it is turned into cash. When players don't understand this, they often mismanage their wealth and lifestyle.
What are some common misconceptions people have about cryptocurrency?
One of the biggest misconceptions is that you should allocate capital based on fundamentals. People think that if a project has strong fundamentals, then the price will follow. But in reality, the market doesn't care about fundamentals 90% of the time. Making money is really about predicting which narratives will take off first. Fundamentals are important when there's a catalyst, but most of the time it's about catching the next trend and making a call when you see it. That's my experience, anyway. It's a bit like when you know something is going to happen, it happens out of the blue, and you do your best to react to it because the market can move faster and further than you expect.
For someone entering crypto today, how would you advise them to succeed?
To be honest, if I were entering crypto today, I would question whether it's worth it. But if you still want to get into crypto, I'd say focus on on-chain assets first. They have the best upside potential and can provide the fastest compounding returns for a smaller portfolio. But on-chain opportunities won't be around forever - there's a certain seasonality to on-chain assets, and you also need to be able to trade on centralized exchanges when opportunities in the on-chain market dry up. Both levels of trading are key, but focus on mastering one and becoming proficient in the other, don't try to do both.
What are your personal goals for the next 10 years? Do you see crypto as just a means to an end?
First of all, I really enjoy this "game". Competing with the best traders and investors in the world is a big reason why I'm in this industry. My goal for the next 10 years is to build the best proprietary fund in the crypto space. In the long term, my goals turn to the stars. I have always dreamed of contributing to humanity becoming an interstellar species. A big part of that is supporting space exploration as much as I can. One of my bucket list goals is to go to space before I die.
So, do you see crypto as more than just wealth accumulation, or as part of a broader vision?
That's right. A lot has been said about the mission of crypto, and it doesn't need to be repeated here. Beyond that, for me, as a platform for achieving extraordinary wealth, crypto also gives us the opportunity to compete on a global scale. I want to use this success to support larger causes such as biomedical research, space exploration, and environmental protection. At my company, through my and my co-founders’ personal investments, we actually invest in robotics, biocomputing, home cancer detection, and other non-crypto related cutting-edge technologies. Sometimes these founders are even crypto pioneers, or have an interest in crypto. It’s all interconnected.
What advice would you give to someone who wants to succeed in crypto right now?
My motto is simple: “Live, Laugh, Play Long.” “Live” means taking care of yourself and enjoying life while you’re young. “Laugh” means appreciating where you are and making the most of every moment. “Play Long” means being patient, understanding when to allocate resources, and knowing where you want to contribute. If you have this mindset, you’re not only contributing to society, but you’re contributing to society for the long term. That’s how you succeed, not only in crypto, but in life.
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