After suffering two consecutive major losses and losing 45% of his capital, Ao Ying boldly went all in with a large position that same day and achieved spectacular results, more than tripling his account overnight! His balance grew from 710,000 after the losses to 1.65 million (all figures in U.S. dollars). A lot of people suddenly started treating Ao Ying like a god. But there are no gods in this market. The former trading-signal guru “Doctor” was treated like a god too, until it all came crashing down.
In his last major winning trade, Ao Ying used 710,000 in capital to open a 14.16 million ETH short position, giving him an effective leverage of 20x. For a position of that size, the maintenance margin is 2%, which means that an adverse price move of just 3% would trigger liquidation! With such a low margin for error, the outcome is highly likely to be either a huge profit or liquidation. No one can correctly predict price movements every time. But this time, he got it right, capturing a 7% drop and making 940,000.
A truly mature trader makes major profits by benefiting from substantial favorable price movements. At the same time, each loss takes no more than 20% of their capital, and consecutive losses are rare. If someone loses half their capital every time they take a loss, and relies on high-leverage all-in bets for big wins, I wouldn't admire them even if they pulled it off. Because I know that no one is a god, and no one can win every all-in bet.
I’m posting this because I’ve seen so many people treating Ao Ying like a god. I’m simply sharing my view on the qualities of an ideal trader. Ao Ying is obviously amazing—10,000 times better than me—and I admire his personal qualities a lot. But there’s no need to treat him like a god. On the contrary, I still have concerns about his trading. “High leverage leads to ruin” is a rule of contract trading that I figured out long ago. No one can escape it.
In his last major winning trade, Ao Ying used 710,000 in capital to open a 14.16 million ETH short position, giving him an effective leverage of 20x. For a position of that size, the maintenance margin is 2%, which means that an adverse price move of just 3% would trigger liquidation! With such a low margin for error, the outcome is highly likely to be either a huge profit or liquidation. No one can correctly predict price movements every time. But this time, he got it right, capturing a 7% drop and making 940,000.
A truly mature trader makes major profits by benefiting from substantial favorable price movements. At the same time, each loss takes no more than 20% of their capital, and consecutive losses are rare. If someone loses half their capital every time they take a loss, and relies on high-leverage all-in bets for big wins, I wouldn't admire them even if they pulled it off. Because I know that no one is a god, and no one can win every all-in bet.
I’m posting this because I’ve seen so many people treating Ao Ying like a god. I’m simply sharing my view on the qualities of an ideal trader. Ao Ying is obviously amazing—10,000 times better than me—and I admire his personal qualities a lot. But there’s no need to treat him like a god. On the contrary, I still have concerns about his trading. “High leverage leads to ruin” is a rule of contract trading that I figured out long ago. No one can escape it.
