Why Do People Think Trading Competitions Are For Whales Only?

[Firstfrost]

I was in an X Space earlier where someone mentioned that the reason he doesn’t participate in trading competitions is because he’s underfunded, as most competitions tend to favor whales.

The host debunked this idea and gave an analysis of three ongoing events that actually favor retail traders even more:

1. BitDelta Winter WonderTrade Festival

2. Bitget Crazy48H trading event

3. Zoomex Fair Play Cup

He explained that these competitions stand out because they are more accessible, especially when compared to events that require $30,000+ in minimum trading volume.

So my question is: why do people often assume that trading competitions are only for whales?

[Odusko]

A wide range of reasons make up for why whales are the most dominating on the leadership board of any trading competition whals like institutions and Influencers,  who have high volume of trading and positions seize, trading competition structure favors high volumes trader's compared to the low volumes trader's even if they win in the trading competition,  so alot of factors make trading to favor whales much more than small volumes trader's.

[nelson4lov]

Most of (if not all) of the trading competitions in crypto are heavily volume dependent. So you make x volume, you reach the leaderboard. Also, one needs to be on some of the top spots in order to get tangible results. Now, whales have this part easy because they can make so much volume effortlessly while someone with lower amount of capital will have to take on more risks like increasing their leverage for example. There are other downsides too like you could incur trading fees and spreads and then not win.

Unless there are other criterias that favour low-stakes traders, it's a no good competition to participate.

[Ivystar5]

shut the fuck up with this lame question like you do not know what people mean when they say it's meant for whales, this is just a strategy you use to mention all those shit you're advertising in this forum, I understand the strategy buddy don't act like you are genuinely asking theta questions, can you ever compare whales trade to a retail trader trying to make a living with small trades? it that's even possible, why won't whales win in competition?.. you can answer the question yourself.

[_act_]

Whales are also very patient and if the trade go in their direction, they still continue to hold the position, unlike those with small amount of money that make many multiple trades while some or many may not be in their favour. When I am hearing about trading competition, I avoid it because I believe it can let me make stupid decisions and lose more money.

shut the fuck up with this lame question like you do not know what people mean when they say it's meant for whales, this is just a strategy you use to mention all those shit you're advertising in this forum, I understand the strategy buddy don't act like you are genuinely asking theta questions

Why are you harsh? It is possible he noticed something and he asked the question. If you do not mind, why not remove your signature and avatar if you want to blame others. Also the OP is not wearing any signature and avatar because he is a junior member with just one merit.

[TastyChillySauce00]

Like other said, it's mostly volume based. The exchange didn't give away money just for the sake of giving away. Almost every time they are doing competition is to drive up volume.

The only way for retailer to win in a trading competition is through wash trading and even then you will get eliminated if the exchange deemed that as violating the rules.
Therefore it's only whales that can achieve high volume while still genuinely trading. If the trading competition is percentage on gain based then it will be an entirely different thing.