Stable Trading Wins in the Long Run! Strive to Become A Stable Lead Trader; Fight Against the Bear!

2023-01-13, 08:29

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![](https://gimg2.gateimg.com/image/article/1673601397110411.jpg)
Nearly everyone has heard of the recent buzzword, called "invalid work". Crypto lovers joked that the phrase refers to working hard all day in a volatile and sluggish market, but when they checked their investment portfolio, only to find that they were paid more than their wages, and a day’s work was wasted. In fact, with the recent violent market volatility, more and more investors realize that "steadiness" is the right way to make long-term investments. The investment method of sharp rises and falls in the past may need to be adjusted.

This question is a proposition that must be solved to aid Gate.io Copy Trading lead traders, because they not only need to save themselves, but also need to save others. They undertake the responsibility and mission of leading copiers to trade and make profits, and they must take every step to lead copiers to break through the bear market! In the past, many lead traders may have tended to trade with big rises and falls in order to obtain short-term huge profits, but it is not suitable for the current market conditions. On the contrary, in today's sluggish and volatile market, it's wiser of you to trade stably with lower risk. Therefore, Gate.io Copy Trading encourages everyone not to pursue a high return in a single trade, but to pursue a steady stream of small returns in each trade, and try to reduce risks. This way, the total return is still very considerable.

Gate.io Copy Trading currently also needs stable lead traders to lead copiers and gain a firm foothold in the bear market. It will lead to more resources for stable lead traders. Therefore, to attract more stable lead traders to join Gate.io Copy Trading or encourage more users to do stable trading, Gate.io Copy Trading now offers several benefits for stable lead traders, including official resources and traffic support, cash rewards, and satisfaction of personal requirements, etc. The more stable the lead trader in trading, the more official resources can be obtained. Copy Trading will also focus on the needs of stable lead traders, adjust the product model and functions, and improve in a way that is more conducive to their trading operations, to provide you and the copiers with better service.
## What is stable trading?
The so-called stable transaction means that the lead trader can obtain stable returns and pursue stable profits in a more conducive direction than excessively pursuing high returns in a single trade. In the turbulent market environment, lead traders can control the risks and returns at a good level, and there will be no sharp rises and sharp falls in the rate of return. Don't want to get rich overnight, but want a steady small income gradually? There are three indicators that can be used to measure whether a lead trader is a stable trader or not, namely the Sharpe Ratio, Max Drawdown, and the trading Win Rate.

First of all, the Sharpe ratio can be simply understood as a technical parameter that quickly judges a trader's ability to lead trading and his stability, calculated by: trader's average ROI/trader's ROI standard deviation, which represents the return corresponding to the unit risk. The larger the Sharp Ratio, the higher the return corresponding to the unit risk, and the more appropriate relationship between the risk and return for the lead trader, which means he/she has relatively stronger profitability. So the Sharpe Ratio can be used to measure the relationship between the return and risk of the lead trader. In general, the Sharpe Ratio fluctuates between 0 and 1, and it is excellent when it exceeds 1.

Max drawdown is also an indicator to measure the ability of a lead trader to resist risks. It means the range of the net value of the product falling from the highest point to the lowest point within a certain period of time. The larger the max drawdown, the more the funds of the lead trader will fall, and it's more likely to lose money when buying at a high point. Usually, the max drawdown is directly proportional to the risk. The smaller the max drawdown, the stronger the ability to control risk, and the larger the drawdown, the harder it is to pay for itself. Generally speaking, it is better to control the max drawdown to about 20% or less.

The Win Rate refers to the number of profitable transactions/total number of transactions within a period of time. Actually, the more profitable transactions per unit of time, the better; the higher the win rate, the better. Because it represents the frequency of stable profits of investors, which can measure the ability of the lead trader to balance risks and benefits.

To put it simply, an excellent stable lead trader should do the following: try to increase the Sharpe Ratio, try to reduce the max drawdown, and try to increase the trading win rate.
## Case Study of Stable Lead Traders in Trading
The following are the yield curves of the two copy trading lead traders, which can more concretely show what "stable trading" is.

### Lead Trader A: high Sharpe Ratio; high Win Rate; low Drawdown
![](https://gimg2.gateimg.com/image/1673601001198909608113en1.png)
From the page data, the lead trader's Sharpe Ratio is 6.35, which is at an excellent level. The winning rate is also quite outstanding, in an upper-middle level, and the max drawdown is extremely low, only at 0.53%. The above index values show that most of his trades in the past month have been profitable, and there has been no single sudden profit or single sharp drop. This type of lead trader has a relatively high probability of making a profit in each transaction, with a relatively stable return and smaller risk.

### Lead Trader B: high Sharpe Ratio; high Win Rate; High Drawdown
![](https://gimg2.gateimg.com/image/1673601028927913868113en2.png)
Although this lead trader has a super high Sharpe Ratio, a very high winning rate, and also a high drawdown, it shows that some of his single trades accurately capture the price trends and obtain a larger profit range. His overall profit and loss are relatively obvious. He has a higher probability of achieving a high ROI in a single transaction. He is more suitable for copiers who expect to obtain high returns in a short period and are willing to challenge themselves. This lead trader does not fit the type of stable one.

Although the yield curves of both lead traders are in a steady and advancing trend, and the yield is positive, resulting in obtaining profit, it does not mean that they are both stable lead traders. In contrast, lead trader A is closer to the characteristics of stable trading, because he is more in line with the comprehensive standard of "high Sharpe Ratio; high Win Rate; and low drawdown". Therefore, other lead traders should strive to make their yield curve tend to that of lead trader A, and strive to be a stable lead trader. Not only can they obtain a steady stream of small profits, they can also enjoy the exclusive benefits of stable lead traders.

## What Are the Exclusive Benefits of Stable Lead Traders?
### 1. Official Platform Resources And Traffic Support 
Gate.io Copy Trading will do data evaluation every week among lead traders. Those who meet the standard of stable lead traders will get the official platform resources and traffic support including Gate.io official banners, copy trading banners, copy trading recommendation list, official Posts, official TG communication groups, official Twitter, official announcements, official emails, etc. Compared with other platforms, Gate.io has a complete social ecosystem. We have Gate.io Post for all users to communicate internally, an official TG communication group in various languages, and a Live platform. Lead traders can easily use these channels to promote themselves and gain loyal copy fans.
### 2. Cash Rewards
Copy Trading will select 5 stable lead traders every half month, and give each corresponding cash rewards, ranging from 10 to 100 USDT.
### 3. Adoption of Personal Opinions
Copy Trading will select the best stable lead trader every month and get in touch with him by email, and send him/her an Opinions Collection Form, asking about his needs and suggestions about the use of copy trading products. Then the copy trading team will actively adjust the product model and functions accordingly, and try its best to meet the best lead trader's requirements.
## Strive to Be A Stable Lead Trader; Fight Against the Bear Market
During the market downturn, making big profits and small losses should be our trading norm. Making small returns gradually should be our trading goal. Instead of pursuing big profit in just a single trade, it's wiser of you to pursue long-term stable returns. Especially in the bear market period when it's more difficult to profit and losses occur frequently, lead traders need to fully consider the safety of their own funds and also those of their copiers. They need to use leverage carefully, control risks, and reduce losses as much as possible. Also, they should operate cautiously, and strive to increase the Sharpe Ratio and Win Rate, and reduce the Max Drawdown. Committing to the goal of "trade stably, win in the long run", the lead traders should lead their copiers to survive the bear market marathon. Only then can they still stand in the crypto market and enjoy the fun of asset appreciation after experiencing many bull-bear conversions and vicissitudes!

<div class="blog-details-info">
<div>Author:** Gate.io Copy Trading.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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