A review of the strategy of Сoinmatic’s top trader. New features on Coinmatics site.
The Coinmatics platform provides the ranking of traders’ efficiency. It is based on provable statistics.
All trader connected to the system can prove the profitability of their deals and receive a source of additional income — subscriptions to their strategies.
If the trading is efficient, the total income gained from subscriptions can exceed income from the trading itself.
The rating is constantly changing due to the competition for the subscribers: some traders move down in the list, the others make their way to the top.
The trader under the name Walter Bulls has recently headed the list. Today, we will discuss the strategy stated in the description of the account and try to find out why it is succeeding.
So, the description reads: “Top coins only. Calculating profits in BTC. Risk management. No averaging, no moving stop losses.”
Let’s check the list and try to find out why the trader is the ranking’s current top 1.
“Top coins only”
Everything is clear: the trader bets on the coins that have proved to be stable, profitable assets, which means that statistically, a trader has a better chance of profiting with lesser risk.
“Calculating profits in BTC”
We can assume that the trader adheres to the simple principle — calculate in the units you are investing in.
Click on Walter Bulls’ Asset allocation, and what we see here is that 80.78% of the assets are invested in BTC.
“Risk management”
It is a standard phrase meaning that a trader sticks to the fundamental rules to minimize psychological factors and to provide longevity of a strategy.
How does the trader implement risk management? The answer is below.
“No averaging, no moving stop losses.”
Well, that’s where things get interesting. What is averaging of positions?
Let’s say you expect the price to go up. But due to some factors, the price starts going down instead. And here, you’d better enter a stop-loss order, but you open an order a level lower, and then again, and again.
The aim of these actions is to wait until the market reverse towards the initial order in the hope that the lowering will help to make up lost ground.
However, it is a quite strange situation: the trader stays in a loss-making deal and goes on pumping up instead of closing it. Blind faith in an order is a psychological factor, depriving a trader of the flexibility that enables one to avoid losses.
The strategy pays off sometimes, but the point of averaging is that you bet your whole deposit. If it is sufficient to last until the trend reverses, you will win. Otherwise, you will lose everything. Experience shows that one has a better chance of losing at the roulette.
Thus, Walter Bulls’ rejection of averaging is part of his risk management and the basis of his trading strategy that has taken him into the top of Coinmatics’ ranking.
It was a review of the strategy of the trader who tops the Coinmatics’ rating. At the time of this writing, his total profit is 29.32%.
Will he be able to maintain the leadership? Or will his competitors replace him at the top? A trader GuRaM_GE, whose strategy will be reviewed next, is following Walter Bulls closely in the ranking.
Site updates
Over the past 2 weeks, we have added the following features.
There are 2 sections where you can view your subscriptions to telegram signals, as well as view auto-trading subscriptions.
Let your trades be successful!
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