📢 The “Top Traders Monthly Report - August '24” is out now! 🚀

Featuring curated, consistently profitable traders from the Binance and Hyperliquid Leaderboards.

We'll reveal key stats and insights that distinguish top traders in this competitive arena.

Let's explore the trading elites! 💪

1️⃣ Top 3 Traders by PnL ($) - Overview

August 2024 highlights its top three traders as follows:

🏆 jez (Hyperliquid)

🥈 TRADERT22 (Binance)

🥉 DJ_ (Hyperliquid)

August, much like July, was a volatile month for the cryptocurrency market. Using $BTC as a benchmark, it experienced a sharp decline of nearly 24% during the first week of August, only to rebound by almost 21% by the month's end, ultimately closing at -8.8%. This level of volatility presents significant opportunities for traders who can navigate and capitalize on these market swings.

The top three traders of the month demonstrated this potential, earning profits ranging from +$1.3M to +$2.8M. Leading the pack was jez, a new trader from Hyperliquid, who topped the charts with a total profit of +$2.8M. His PnL curve shows that he capitalized on the market's most volatile period during the first week of August. In second place, for the second consecutive month, was TRADERT22, who followed a similar trading pattern to jez and ended the month with +$2.6M in profits. Rounding out the top three was DJ_, another newcomer from Hyperliquid, who generated +$1.3M in profits, primarily during the first and last weeks of August.

2️⃣ Top 3 Traders - Performance Metrics

In August, jez closed a total of 32 positions, averaging 394 trades per position. He achieved a Win Rate of 46.9%, coupled with a notably high Profit Factor of 8.03 and an average Profit-to-Drawdown ratio of 2.75. His typical holding period ranges between 4 to 5 days.

TRADERT22, the most active among the top traders, closed 294 positions with a Win Rate of 57.5% and a Profit Factor of 1.45. Unlike the others, his average holding period is less than 3 hours, highlighting his fast-paced trading style.

DJ_, despite closing only 9 positions, averaged a remarkable 1,653 trades per position. He shows an impressive Win Rate of 88.9% and an even higher Profit Factor of 8.55. His average holding period aligns more closely with jez, at around 6 days.

3️⃣ Trader Spotlight: jez

3.1. Notional exposure and PnL ($)

The notional exposure chart reveals that jez maintained a primarily directional approach, either long or short, throughout the month, with average exposure ranging between -$12M and +$11M. Of the 32 positions he closed, approximately 63% were longs. A significant portion of his profits came during the first week of August, driven by two short positions on $BTC and $ETH.

In August, jez traded only 8 symbols, with the majority of his profits coming from the two major coins, $BTC and $ETH. His trading activity was most concentrated from the end of July through the first week of August, and again during the last week of the month.

The figure below displays the Total PnL ($) by symbol traded.

The cumulative distribution function (CdF) of his PnL is positively skewed (skewness: 4.19), with a positive edge since the lower percentiles:

• 25th percentile: W/L ratio of 1.13 ($4.4k vs $-3.9k)

• 50th percentile: W/L ratio of 5.64 ($67.7k vs $-12.0k)

• 75th percentile: W/L ratio of 3.86 ($128.7k vs $-33.3k)

3.2. Position Case Studies

ETHUSDT - Flip flopping

• Side: Short

• Trades executed: 3812

• Max DD ($): -$158k

• Final Pnl ($): +$1.7M

• ROI (%): 15.6%

• Holding Period: ~5.25 days

This was jez's most profitable position, generating a total profit of $1.7M, which accounted for 46.8% of his total PnL. He began building the short position just below the resistance level in the $3,300-3,400 range and closed it following a decline of over 20%.

jez began building the position on July 30th with a notional value of approximately $7.5M. As the price initially rose, he cut one-third of the position, but when the price returned to his average entry level, he increased his size again. Eventually, as $ETH's price started to decline, jez simply needed to remain patient and follow the market. At its peak, the position was worth over $10M. Jez eventually started closing it out in the $2800-2600 range.

4️⃣ Trader Spotlight: TRADERT22

4.1. Notional exposure and PnL ($)

TRADERT22 was the most active among the top three traders of the month. With 294 closed positions and an average holding period of less than 3 hours, he managed to achieve total profits of $2.6M.

As shown in the chart below, he frequently alternated between long and short positions, with his notional exposure typically ranging between -$10M and +$10M, except for a peak around August 7th when he was short more than $20M. Like jez, most of TRADERT22’s profits were realized during the first week of August, reaching a peak of over $3M.

The figure below displays, for each closed position in August ‘24, the PnL ($) by symbol traded and their holding period.

Although TRADERT22 traded a total of 25 symbols, most of his activity was concentrated between $BTC, $ETH, and $SOL.

The figure below shows the Total PnL ($) by symbol traded, confirming that the majority of TRADERT22’s profits, approximately $2.7M, were generated from his most traded symbols: $BTC, $ETH, and $SOL.

The cumulative distribution function (CdF) of his PnL is negatively skewed (skewness: -1.64), with a positive edge since the lower percentiles:

• 25th percentile: W/L ratio of 2.15 ($7.1k vs $-3.3k)

• 50th percentile: W/L ratio of 1.26 ($15.2k vs $-12.1k)

• 75th percentile: W/L ratio of 1.44 ($33.5k vs $-23.2k)

4.2. Position Case Studies

BTCUSDT - The road to $1M profit

In August, TRADERT22 closed 105 positions on $BTC alone, achieving a cumulative profit of $1M. Out of these 105 positions, 61, or 58%, were profitable. As depicted in the chart below, he acted swiftly, trading with sizes ranging from $5M to over $10M.

The following image clearly illustrates how TRADERT22’s PnL on $BTC evolved over time. Apart from one significant loss exceeding $400k, he managed to keep his wins and losses relatively balanced, generally ranging between -$100k and +$100k. However, he occasionally capitalized on a few larger wins above $100k, which positioned him to achieve consistent profits over time.

5️⃣ Trader Spotlight: DJ_

5.1. Notional exposure and PnL ($)

DJ_ maintained a predominantly short position throughout the month, with exposure ranging from -$5M to over -$10M. Early in the month, he secured $500k in profit, followed by a relatively flat period until the final days of August when he earned an additional $1M, driven by a short exposure exceeding $10M. As seen in his PnL curve, he experienced minimal to no drawdown during this period.

DJ_ only traded 3 symbols: $BTC, $ETH, and $SOL.

The figure below shows the Total PnL ($) by symbol traded, highlighting that $BTC was the primary contributor to DJ_’s profits, accounting for $1.1M out of his total $1.3M earnings.

5.2. Position Case Studies

BTCUSDT - Key position contributes 54% to Overall profits

• Side: Short

• Trades executed: 4848

• Max DD ($): -$255k

• Final Pnl ($): +$709k

• ROI (%): 6.7%

• Holding Period: ~7 days

This $BTC short position contributed 54% of DJ_’s total profits for the month. With a maximum notional exposure of $10.5M, he achieved a return of 6.7%, or $709k, over the course of a week.

DJ_ initiated a small position on August 22nd and continued averaging up as the $BTC price climbed from $60.5k to $65k. At this point, his average entry price was just below $63k, leaving him temporarily underwater by approximately $255k (2.4% of his exposure). However, around August 27th, the $BTC price began to drop sharply, allowing DJ_ to gradually close his position in the $58-59k range.

Worth noting, out of 10 positions on $BTC, while most offset each other, DJ_ needed only one successful trade to generate the majority of his total monthly profits.

6️⃣ Conclusion

The top three traders of August posted significant profits ranging from $1.3M to $2.8M. While these figures are impressive, it's crucial to remember that their trading sizes are also substantial, with exposures often exceeding $10M. Additionally, this analysis only considers the information available about their trades; we do not know their actual capital, which could be much larger.

From a risk management perspective, this is important to keep in mind. Although these traders earned large sums in absolute USD terms, their returns in relative terms—estimated at 10-30% using their average notional as a proxy—still represent excellent returns on investment but also help put these values into perspective.

The key takeaway for the month is that, despite differing views and trading strategies, the most critical aspect is capital preservation (maintaining small wins and losses) while patiently waiting for the occasional significant wins that drive a substantial impact on the PnL curve.

Stay connected for more insights in the upcoming month's edition.
Follow our highlight traders on Twitter:
jez: please if you know, let us know his twitter handle
TRADERT22: please if you know, let us know his twitter handle
DJ_: please if you know, let us know his twitter handle

Data analysis provided by @0xfab_eth. Drop him a follow!

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