12 Enhanced Data Filters for True Smart Money Identification

Creating a Smart Money address isn’t as simple as just looking at profit ratios or win rates.


First off, it’s our 12 Enhanced Data Filters to ensure the data fundamentals are sound. Only then, does the real hunt for ‘True’ Smart Money start.

This isn’t just us flaunting our QC efforts🤩, it’s also a handy checklist for you to see if your other “smart money tools” are up to snuff.

Candlestick is proud to be blazing the trail here.

Trade Level Filters

Filter 1: Buy/Sell Tax Adjustment

We’ve mastered gain calculations by excluding taxed balances. We ensure meme coin taxes don’t artificially pump up the address’s unrealized gains.

Check out this $SOJ token case to see how we do it.

You might see this address 0xeb87…93a5 has an unsold balance of 151B (7.63T – 7.48T) of the $SOJ token which might be worth some at market price.

There are platforms that counted this amount as unrealized gain so the address 0xeb87…93a5 will have a better profit ratio, but if you look into the trade – the trader has 0 balance because the 151B was paid for tax by $SOJ.

So no unrealized gain at all!

Filter 2: Token Fee Exclusion

With this filter, we’ve banished those pesky “noise trades” that some #tokens generate, enabling a more precise calculation of realized gains.

The above pic is from DE*tools – does it look like this trader 9c31 spent $45.9 on this token and ended up selling a total of $74?


If you look into the trade you will actually find one of the sell orders, though under the same hash and initiated by the same address, are sold by the token contracts and the 0.02 ETH was sent to the token contract.

It would be wrong calculations if not removed this kind of trade, especially for P&L calculation.

The above picture shows how you are well-taken care of with Candlestick.

Filter 3: Price Outlier Control

No more price distortions due to arbitrage MEV bots!

This filter ensures that anomalies like trading 0.1 $MKR for 10 $ETH won’t muddy the data.

Filter 4: Fake Transaction Filter

Does this look like Vitalik Buterin buying/selling these tokens?

Not if you are a pro at on-chain data!

But no worries Candlestick got you covered. Such kinds of tricks won’t make any bother to our data and of course Smart Money.

Filter 5: Fake CEX Deposit/Withdrawal Filter

No more falling prey to sneaky fake transactions!

We’ve built a filter that flags suspicious activity, such as “CZ receiving this token from Binance” or “this token is being deposited to Coinbase”.

Why does it matter?

In Candlestick latest version of Smart Money, we’ve added significant weight to CEX deposits as they signify strong sell actions.

If not identified and removed, the above-mentioned fake transfers could potentially manipulate the address analysis.

Filter 6: Fake Token Filter

Inspired by our favorite Etherscan, we’ve crafted a filter to banish counterfeit tokens from our system.

Candlestick Smart Money analysis focuses SOLELY on legitimate tokens, keeping our results clean & safe.

Filter 7: Token Creator Filter

Pretty good right?

But he’s the token creator who dumped all the tokens for such profit!

Should he be considered smart money with such “strong” trading performance?

Absolutely not in Candlestick but in other platforms (have to tell the truth)😝

Wallet Level Filters

Filter 8: Pool Creator Filter

Have you been rug-pulled by scammers?

Well, we’ve put an extra layer to identify and disregard ‘rug-pulling’ pool creators and make sure they won’t be added to the Smart list by mistake, regardless of their profitability.

For example, this address 0x3d6…b0302 is labeled as Smart Money by reputable analytics Na**en but won’t be on Candlestick cuz it “rug” the others.

Filter 9: Bot Filter

High-frequency trading bots may turn a profit, but we ensure their inclusion doesn’t mislead our users with our unique algorithm.

Filter 10: Inactive Token Filter

We adjust/remove tokens that aren’t actively traded, avoiding price manipulation and delivering reliable results.

Filter 11: Inactive Wallet Filter

Only active participants deserve the ‘smart money’ tag. Our activity-based requirements for qualifying addresses eliminate the idle.

Filter 12: Buy/Sell Ratio Filter

We ensure only gains/losses from tokens with an acceptable buy/sell ratio are counted, preventing distortions from transferred tokens.

Take a look at this example – does this address look profitable?

Yes if only look at DEX trade – he spent 0.3 $ETH on buying this token and sold it for 0.8 $ETH.

BUT take another look!

From the 85M tokens that he sold, he only bought about 10M, which is only 0.12%.

Since the gap is so BIG and we can’t verify the received amount, Candlestick algorithm will ignore this token for this address when calculating the win rate & profit on Smart Money qualification.

🥳 There you have it!

Going through all the 12 Enhanced Filters, then comes to the win rate, profit ratio calculation.

The era of “True” Smart Money begins! Only after that, the address can be tagged as Smart Money on Candlestick.

Any additional filter that you think would be necessary to improve our Smart Money? Let us know!

Now all the Smart Lists on Candlestick are Algo-Dynamic!

We have FINALLY upgraded the last Smart Money list – Smart DEX Traders to dynamic.

Now all the Smart Lists on Candlestick are Algo-Dynamic!

which means:

1. Faster

– 5X faster for Pro users and 6X for Alpha users

2. Smarter

– Fueled by our V2 trading engines

– Take CEX deposits/withdrawals into account to calculate PnL for smarter performance

This is a very key step to level up Candlestick Smart Money to be leading. Cuz:
1. A smart address today might not be smart tomorrow
2. Smart traders will switch addresses to avoid tracking

Algo dynamic can solve these 2 problems.

You May Also Like