Top Traders Report - Dec ‘23
Featuring curated, consistently profitable traders from the Binance Leaderboard.
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
December 2023 unveils its elite trio of trading maestros as follows:
🥈 0x7777
🥉 SOJUBOMB
In December 2023, the race among Binance's top traders tracked by Mirrorly was remarkably close, with PnLs in a narrow range from $650k to $690k.
Taking the top spot is smartestmoneydoteth, with an impressive profit of over $687k. Known for his unique approach, he trades over longer periods, from weeks to months, unlike his peers who often prefer shorter timeframes. It's important to note that December's figures only include his closed positions for that month. This doesn't account for ongoing trades, such as the recent MKR position, which he closed in early January for almost $5 million in profit.
Securing the second spot is 0x7777, with a notable gain of $682k.
Claiming third place, with a profit of $656k, is SOJUBOMB. Notably, this is the third month in a row that he has been featured in our report, following his profits of $236k in October and $200k in November. His consistent presence in the top ranks speaks a lot about his trading ability.
2️⃣ Top 3 Traders - Performance Metrics and Profiles
When examining the main performance metrics of the top three traders, there are notable differences, especially in their average holding periods, which range from just a few hours to several months. This variation is also evident in the number of positions they've closed.
Focusing on other key metrics like Profit Factor (PF), Average Profit-to-Drawdown (Avg. Profit-to-DD), and Sharpe Ratio (SR), it's challenging to fully assess smartestmoneydoteth due to limited data. However, between SOJUBOMB and 0x7777, SOJUBOMB clearly excels, boasting a Profit Factor of 3.88 compared to 0x7777's 1.39.
All traders predominantly opted for long-only strategies, adapting to the positive market trend.
Of the three, SOJUBOMB was the only one that engaged in hedging his portfolio, which he often refers to as the "book."
The figure below displays a bubble chart comparing the maximum notional value ($) and ROI (%) for each trader's positions. The size of each bubble indicates the contribution of that position to the trader's total realized PnL. For instance, one of SOJUBOMB's positions, as highlighted, had a maximum notional value of approximately $485k, a 67% ROI, and contributed 24% to the total PnL.
This chart can help us gain insights into the position management and risk/return profiles of each trader.
0x7777 tends to vary the notional value invested significantly while maintaining a relatively low ROI variance. Besides, the contribution of these positions to his total PnL is relatively consistent with a maximum contribution for a single position of 5.3%.
In contrast, SOJUBOMB maintains a more stable investment amount but exhibits higher variance in the ROI of his positions, which are positively skewed. Additionally, some of his positions significantly impact his total realized PnL, like the one shown in the chart (24%).
For smartestmoneydoteth, the chart offers limited insights due to the scarcity of data points.
The figure below provides a summary of their main profiles:
3️⃣ Trader Spotlight: Smartestmoneydoteth
3.1. Notional exposure and PnL ($)
smartestmoneydoteth is a name that speaks volumes on its own, requiring no further introduction. In December 2023, he ended the month with realized profits of around $687k.
While the December figures are impressive, they only tell part of the story. His biggest winning positions are often those left open for longer durations, capitalizing on significant market movements. A prime example is the MKR trade, closed in early January for a staggering $5 million profit.
This approach underlines his preference for long-term holdings, even if it means navigating through periods of drawdowns.
Among the five he closed in December, two trades - STGUSDT and RDNTUSDT - were initiated in mid-August. These positions faced major drawdowns (-$650k and -$680k respectively) during their tenure and were eventually closed with just minimal profits (+$136 and +$106k respectively). This pattern demonstrates smartestmoneydoteth's resilience and patience, holding onto positions even through turbulent market phases.
Among the five positions he closed in December, only one, on BLURUSDT, emerged as a clear winning trade with a holding period of 6 days and a profit of $447k (22.5% ROI).
Throughout this period, smartestmoneydoteth's average exposure hovered around $2 million.
I get the feeling that we'll definitely be seeing smartestmoneydoteth in January's top three report. It'll be fascinating to delve into his long-held MKRUSDT position, a trade he maintained with unwavering conviction for months!
The figure below displays, for each closed position, the PnL ($) by symbol traded and their holding period for the month of December ‘23:
3.2. Position Case Studies
BLURUSDT - Winning Trade
Trade Info:
Side: Long
Trades executed: 106
Max DD ($): -$169k
Final Pnl ($): $447k
ROI (%): 22.5%
Holding Period: ~6 days
He began the BLUR position on December 17th, entering at a consolidation base and gradually scaling up to an exposure of $2 million. As the price hit a resistance level about a week later, he began taking profits, and eventually closed the position between December 21st and 23rd, securing a final profit of $447k.
RDNTUSDT and STGUSDT - The “breakeven” plays
As previously highlighted, it's important to showcase these positions to understand the patience, conviction, and risk management required to trade in the style of smartestmoneydoteth.
Both share a similar timeline, initiated around mid-August and closed in early December, slightly above the breakeven point.
Combined, these positions experienced a drawdown of about $1.3 mln on a total exposure of $5 mln, a figure that might seem staggering to many, but likely was factored into the risk assessment of smartestmoneydoteth's strategic planning.
The two figures below show the position management of the two trades, notice the similarities:
4️⃣ Trader Spotlight: 0x7777
4.1. Notional exposure and PnL ($)
0x7777's trading approach primarily appears to capitalize on short, rapid price movements, swiftly entering and exiting the market (5 hours average holding period) with substantial capital.
Throughout December, his average exposure fluctuated between $1 million and $10 million, likely influenced by his conviction in trades and the liquidity of the tokens involved.
His PnL curve remained relatively stable, except for a significant drawdown of around $260k between December 10th and 15th.
The figure below displays, for each closed position, the PnL ($) by symbol traded and their holding period for the month of December ‘23:
The cumulative distribution function (CdF) of his PnL is positively skewed (skewness: 1.68), with a positive edge since lower percentiles:
25th percentile: W/L ratio of 0.83 ($660 vs $-792)
75th percentile: W/L ratio of 1.15 ($14.3k vs -$12.4k)
4.2. Position Case Studies
BTCUSDT - The liquidation trades
In this section, we'll delve into two trades executed by 0x7777 on December 11th and 12th, following the significant liquidation event that caused a nearly 10% drop in BTC value starting December 10th.
To set the scene, the figure below illustrates the liquidation event alongside the trades made by 0x7777. The first trade, marked by red vertical lines, resulted in a loss, while the second trade, indicated by green vertical lines, was profitable.
Despite incurring a total loss of about $10k from these specific trades, 0x7777's overall performance during this period was positive. This underscores his ability to leverage rapid price movements, a key characteristic of his trading approach; specifically for these trades, he initiated a long position following a sweep of the lows.
Below the details and position management of the two trades:
Losing trade - Opened Dec 11th at 16:40 | Closed Dec 11th at 18:30:
Side: Long
Trades executed: 17
Max DD ($): -$111k
Final Pnl ($): -$108k
ROI (%): -2.4%
Holding Period: ~2 hours
Winning trade - Opened Dec 11th at 19:45 | Closed Dec 11th at 14:55:
Side: Long
Trades executed: 29
Max DD ($): -$13.5k
Final Pnl ($): $91.6k
ROI (%): 1.5%
Holding Period: ~19 hours
5️⃣ Trader Spotlight: SOJUBOMB
5.1. Notional exposure and PnL ($)
SOJUBOMB, a name that's become synonymous with excellence in trading, features in our report for the third consecutive month.
In December, his equity curve was again notable for its consistent and linear PnL trajectory, displaying minimal to no drawdown and a high Profit Factor of 3.88.
Until December 18th, he predominantly maintained long positions. However, by the month's end, he engaged in a pair trade that he also discussed in his twitter account. This involved hedging his long position in OP with a short position in ARB, a trade we'll explore further.
Throughout the month, his average notional value hovered around $250k closing the month with a profit above $600k.
The figure below displays, for each closed position, the PnL ($) by symbol traded and their holding period for the month of December ‘23:
The cumulative distribution function (CdF) of his PnL is highly positively skewed (skewness: 3.46), with a positive edge since lower percentiles:
25th percentile: W/L ratio of 0.88 ($2.3 vs $-2.6k)
75th percentile: W/L ratio of 4.37 ($52.5k vs $-12k)
5.2. Position Case Studies
OPUSDT / ARBUSDT - The pair trade
This section will explore SOJUBOMB's pair trade involving OP and ARB during the latter half of December.
The figure below highlights the OP/ARB ratio. It captures the ratio within the timeframe marked by the two vertical white lines, during which there was a notable increase of 46% in OP's relative strength compared to ARB.
SOJUBOMB clearly anticipated it and planned accordingly, betting on OP outperforming ARB. Despite both OP and ARB experiencing price increases, he managed to secure a total profit of $200k from this trade.
Below the details and position management of the trades executed:
OPUSDT trade - Opened Dec 16th at 19:45 | Closed Dec 28th at 04:10:
Side: Long
Trades executed: 198
Max DD ($): -$21.4k
Final Pnl ($): +$325k
ROI (%): +67%
Holding Period: ~11 days
ARBUSDT trade 1/2 - Opened Dec 19th at 04:00 | Closed Dec 22th at 06:40:
Side: Short
Trades executed: 4
Max DD ($): -$26k
Final Pnl ($): -$26k
ROI (%): -7.5%
Holding Period: ~3 days
ARBUSDT trade 2/2 - Opened Dec 22th at 09:00 | Closed Dec 29th at 09:35:
Side: Short
Trades executed: 358
Max DD ($): -$127k
Final Pnl ($): -$99k
ROI (%): -17.2%
Holding Period: ~7 days
6️⃣ Conclusion
In this month's edition, we finally feature smartestmoneydoteth, and we anticipate discussing him in the January report, particularly focusing on his MKR position that earned a staggering $5 million in profit.
Both 0x7777 and SOJUBOMB showcased exceptional performances this month, despite their vastly different trading styles. 0x7777 capitalizes on quick price movements using substantial capital, whereas SOJUBOMB employs robust risk management to manage his portfolio. When it comes to performance metrics, SOJUBOMB distinctly stands out, excelling in both risk management and return.
Keep an eye out for our next report, where we will explore these trends and other developments in greater depth. Stay connected for more insights in the upcoming month's edition.
Follow our highlight traders on Twitter:
smartestmoneydoteth https://twitter.com/smartestmoney_
0x7777 let us know if he has a twitter account
SOJUBOMB https://twitter.com/JoshuaDeuk
Data analysis provided by the great @0xfab_eth. Drop him a follow!
BETA ACCESS: https://portal.mirrorly.xyz/beta-application?referralCode=0xfab
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