High delta wallets
Last updated
Last updated
As we just read on , we got to find a wallet that will perform even if the execution bot doesn't perform at its best.
Wallets that have a slower trading pace () will perform better because they are less dependent on very short-term price changes/volatility.
On average, with a good bot, consider that it takes 5 seconds to buy and 5 seconds to sell a token when copying another wallet.
If the wallet 10th Delta Percentile is 600, this means 90% of his trades will last longer than 600 seconds or 10 minutes. This trader edge isn't profiting from a very fast gain, that depends on liquidity or short-term volatility.
This makes him a good target for copying, if everything else in terms of profitability makes sense.
The price I'm buying and selling the token will hardly be much worse than his. Maybe a 5% difference? If on average he's aiming for 50% on a trade and I make 40% by copying him, this is fine.
If the wallet 50th Delta Percentile is 100, this means half of his trades takes less than 100 seconds.
This guy definitely has an edge by trading fast. If my bot delays 5 seconds to buy, I could get a price 100% more expensive than his. Or even more than that. And same goes for the selling, 5 seconds could have a huge impact.
So, rule of thumb: Don't copy traders who have fast trading pace / lower trading deltas. It won't work.
This trader has mixed deltas. Some are high, others are low.
25th Percentile tells it all: 25% of the time he will be trading in less than 84 seconds. This means, 25% of the time you will probably lose money. This is not a good start, is it?