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.

[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

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.

Watch how op will not respond to the thread anymore, that's to show you how much true it is that op is just a shiller, with a strategy to mention his advertse in the middle of a thread making it sound like it's something really interesting mean while his aim is just to make a post and then leave it for people to comment without real conversation. I don't condone shits like this, the forum is full of shit post including mine and everyone else let's make it better.

[o48o]

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

For me it's the negative experience and loose definition of the whole concept. In early days i was interested on trading competitions, so i participated into them.

At some point some exchanges wanted more volume, that would be coming from somewhere else then bots. And instead of having competition based on percentages gained, they had "trading" competitions based on the volume they created. And all i found anymore was those, so i stopped looking and actually traded. That was way more profitable then hoping to win some random competition.

[livingfree]

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

It is because of the duration of the trading competition and the volume that a participant can contribute in it.

So if you're a trader that has only $50, do you think that you'll be able to survive in any of those? Maybe you will but the majority of it, you won't.

That's the reason why you're likely to be eaten alive in any of it with small capital.

[X-ray]

If you have witnessed latest binance trading competition, you'd realize that statement is true.

People who are eligible for the small rewards need 150k volume in trading the most volatile coin. Only a whale could pull that off within a short time duration and even then we're not talking about real competition with big reward, the reward from this competition at most is just $20 or so.

If we talking about reward competition reaching hundred k or even millions, you'd expect trading volume to go up significantly and reach billions. So of course the first line of thought of average joe who witness the trading competition is that it's tailored specifically for whales.

The little shrimp can do nothing but just seeing. After all a $500 margin needs 10000x trade to only make 5 million volume. Doesn't even make a dent.

[MAAManda]

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

As a host, he can't possibly say what's on his mind that actually happens in reality, what he says & comes out of his mouth will always be formal narratives. I've been a host too, mate. I know how to handle all those classic answers, LOL.

Why do people often assume that trading competitions are only for whales?

Because the reality is that trading competitions are volume-based. How do you get volume? by trading, the more volume you gain, the greater your winning chance. The whales have money that's not comparable to small retailers, isn't the answer very crystal clear here?

[MArsland]

2. Bitget Crazy48H trading event

To prove it, why don't you try it? I mean, one of the things beginners often bring up here is promoting Bitget Crazy48H, just like you did. Isn't that the goal? Well, the facts I've found show that the narrative that it's difficult to compete with whales is indeed true. Trading volume determines your position when participating in trading contests. Like it or not, statements denying it often aim only to encourage more retail traders to lose.