GMX - TOP 1 PNL WEEK 44TH ANALYZE
Each passing day brings with it new and unique experiences. I'm here to introduce the trader who has secured the top position in PNL on GMX for Week 44, as per the Copin.io leaderboard.
I. Introduce
In the past week, $BTC continued to move within the range of $32,930 to $35,000. The most notable aspect could be the last two days. Quite a few altcoins are gradually gaining momentum after a long period of consolidation. We could easily see the market's wild FOMO during this recent period. And this week, the appearance of the TOP 1 PNL on GMX is slightly different from the previous week. Why is it different? Let's deep dive into his trades.
II. Overivew
In terms of statistics, there may not be many highlights. Because in the past week, only 2 positions were recorded, and that data is not enough to prove much about this trader. But one thing is for sure, after analyzing these positions, it may help us understand both the strengths and weaknesses of this trader. From there, we can extract more for our own trading.
Risk Management
When looking at Max Drawn at only -1.4% and Max Drawdown PnL at just -$10,490, which is 83 times smaller than the total gain, it's not difficult to assess this trader's risk management skills. However, upon closer inspection of individual trades, a different perspective may emerge.
I delved into the amount of time this trader held his position, which is over 4 months, not a small duration. It's quite a long time for a perpetual position. With GMX's fee structure, holding a position for this long may not be a wise decision. The evidence is that this trader alone had to pay a total of $778K in fees. The Long $ETH positon fees -$197K, and the Long $BTC position fees -$581K.
🔴 Extended holding period. During that time, the average max drawdown exceeded 40%. With a total collateral of $2.5M, but having to endure a drawdown of up to -$1.25M at its peak, risk management here could be a red flag.
🔴 High Max Drawdown. Although the position may still bring in profits, the risk management aspect needs careful evaluation if this trader tends to hold positions for 1 to 2 weeks. Because historically, the average holding time for a position is approximately 172 hours (calculated based on 12 positions).
Market Perception
When it comes to market perception, it may not be suitable for short-term trading. However, for a longer-term perspective, it seems that this trader is a permabull. In the past 10 positions from May until now, all of them were Long. The most evident proof is the two positions held for over 4 months, both being LONG.
🟢 Permabull during this period.
This trader's best achievement is having a streak of 4 consecutive winning positions. Although there was an opportunity to maintain more, it wasn't done (this relates to the take-profit aspect, which will be discussed in the next section). But overall, earning $1.4M from May until now demonstrates the trader's long-term vision, which remains closely aligned with the trend.
🟢 Long-term vision remains effective.
Analytical Skills
If we look at the entry point for the successful position this week, we can see that the decision to go LONG wasn't entirely baseless. However, the fact that the user maintained his view even when there was a tendency for the market to drop led to a long-held position and tied up capital. It's somewhat disappointing because of the extended holding period and the extremely high risk. Only with the price movement just before the sudden drop on July 13th, was an 8.5% ROI achieved. This is a safe point to exit the position and wait further to avoid unnecessary costs.
But if we look at other positions from a relatively short period, such as trading $ETH, it's evident that entry points were all after significant market volatility, resembling a swing trader's style. There is a certain degree of observation because, as indicated on the chart, this trader typically waits for one or a few candles to confirm the reversal before opening a position.
🟢 Observant and having clear entry points.
Profit-Taking Ability
Looking at the position below, it was the position just before two long-held positions. You can see that the entry point was very good, right? But if he had just held on a little longer, perhaps the result of this position would have been four times better. This is where I used the [What If] function to review. I also looked at a few other similar positions. Maybe with some adjustments, this trader can definitely achieve better take-profit results.
At the same time, I reviewed a few other similar positions. With a bit more patience, this trader might achieve even better take-profit results.
🟢 Adequate profit-taking mindset.
III. Summary
Evaluated by the system in the past 7 days, this trader ranks better than 52% of the other traders on GMX. With a few characteristics:
The average ROI is better than 81% of other traders.
The profit rate is better than 56% of other traders.
Win Rate is better than 48% of other traders.
Risk Control is better than 51% of other traders.
The frequency is better than 75% of other traders.
Quickly settled better than 1% of other traders.
In summary, this is a trader who is very suitable for reference in future trading decisions. Based on this trader's past behavior, it's evident that his analytical skills and market perception are quite good. However, with what was shown last week, this trader's risk management will be problematic if he continues to hold positions for too long. This is something to be aware of.
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