Rebrand to Winning Wallet Finder; commit validation scripts; dev-friendly docs
- Add copyback.py (in-sample copy backtest), oos.py (out-of-sample test), huntwide.py (wide insider sweep) — completes the detect→hunt→validate→watch pipeline. - Rewrite README around Winning Wallet Finder: the z-score idea explained, how the pieces fit, quickstart, data sources, live-watcher setup, honest verdict. - Extend FINDINGS with the insider-detection results and the in-sample vs out-of-sample copy verdict (+545% in-sample collapsed to one-wallet variance out-of-sample). - Refresh config.example.json to the current schema (discord/alchemy/watch). Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
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@@ -68,10 +68,61 @@ so shared exchanges don't false-link everyone. (See `insider.py`.)
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material nonpublic information is illegal, and blindly following a suspected
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insider is not a safe strategy.
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## Insider detection — what the z-score signal actually found
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Building `insider.py` and sweeping markets (`hunt.py`, `huntwide.py`) surfaced
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genuinely improbable wallets. Out of ~289 scored:
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- **DREAMBIG.** (z=8.9, p≈2e-19) and **qcp14** (z=5.3) on the Iran ceasefire
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market — 45–77% of wins entered <24h before resolution. Textbook insider
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fingerprint, on exactly the theme the *60 Minutes* story covered.
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- **Famecesgoal** (z=9.6) won only 14.5% of bets — but bet longshots and hit
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+98 above what the odds implied. The clearest "beats the prices it pays" case.
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Two refinements proved essential:
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- **Trade count separates insiders from bots.** `bjprolo` scored z=37 — but on
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**306,873** lifetime trades. That's a market-maker grinding a tiny systematic
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edge, not information. Real edge wallets show concentrated z over 1–3k trades.
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- **Funding-cluster linking** (Alchemy, the Bubblemaps "who-funded-whom" step)
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works *only* with a personal-hub filter: a shared exchange (everyone uses
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Coinbase) is not a shared operator. Judge a funder by its own outbound degree.
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## The copy-trade verdict — in-sample vs out-of-sample
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The decisive test: does copying z-selected wallets make money?
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- **In-sample** (`copyback.py`): copy the edge wallets from May 30, z-weighted,
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reinvest 100%. Result: **+545%** in 15 days. Looks incredible — and it's
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circular (the wallets were *selected* for winning over that very window).
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86% of it came from one wallet; the highest-z pick contributed $23.
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- **Out-of-sample** (`oos.py`): select wallets using **only data through
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Apr 30**, then copy forward May 30→now. Result: **+168%** — but **entirely
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from one longshot lottery wallet** (1.5% pre-period win rate hitting again).
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The two strongest pre-period signals made **$0** forward. Forward hit rate was
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27%. That's variance, not edge that persists.
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**Conclusion:** even the one real signal (z-score), when tested for whether you
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can *profit by copying it*, fails out-of-sample — joining every other strategy.
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The detector is valuable for *finding* anomalous wallets; copying them is not a
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proven, fundable edge. The live watcher (`webhook_receiver.py`) exists to gather
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real forward (out-of-sample) data on these wallets — observe before you size up.
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## Practical conclusion 2
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- **Don't** fund a copy strategy — both the +545% and +168% are
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variance/concentration, not repeatable edge.
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- **Do** use the detector to find statistically anomalous wallets and watch them
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live; judge persistence forward with your own eyes.
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- A durable trading edge has to come from *you* (a niche you know), with this
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tooling built around your judgment.
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## Repo layout
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- `insider.py` — the keeper: z-score/p-value detection, timing/freshness/sizing
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signals, and Alchemy funding-cluster ring detection.
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- `insider.py` — the detector: z-score/p-value, timing/freshness/sizing signals,
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Alchemy funding-cluster ring detection.
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- `hunt.py` / `huntwide.py` — market sweeps that surface edge wallets.
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- `copyback.py` / `oos.py` — in-sample and out-of-sample copy-trade backtests.
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- `webhook_receiver.py` — push-based live trade watcher (Alchemy → Discord).
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- `smart_money.py` — data foundation + dashboard (true-win-rate scanner).
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- `archive/` — the strategies that didn't work, kept for reference. See
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`archive/README.md`.
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