Small-scale crypto trader achieves a windfall of $1.5 million by leveraging a unique strategy, contributing to over 3% of maker-side liquidity on a prominent cryptocurrency exchange. Market analyst, Adverse Selectee, spotlighted a trading account holding less than $200,000 in equity last Thursday. The account, in the last fortnight, registered a trading volume of $1.4 billion, consistently featuring amongst the top contributors to the exchange’s total maker volume.
The trader regularly scores profits using a distinctive approach. The dashboard reveals that the trader places quotes on one side of the order book at a time – either bids or asks – bypassing the balance of both. This trading technique could subject the trader to adverse selection, where savvy traders could take advantage of their quotes. However, despite the risks, the little-known crypto trading prodigy has successfully yielded steady profits with a maximum drawdown of a mere 6.48%.
Members of the crypto community lauded the trader’s innovative approach. “It’s fascinating to see this in action,” commented Versace_Trader, pointing out that the trader’s net delta exposure seldom surpasses $100,000, suggesting a well-managed, possibly market-neutral strategy.
The trading account benefits from maker rebates, as evidenced by a -0.0030% maker fee, a common incentive for liquidity providers on centralized exchanges. These rebates, along with high-frequency execution and intelligent quoting logic, enables the trader to make profits even before considering price movements.
The trading is seemingly entirely concentrated on perpetual futures contracts, with no funds earmarked for spot holdings or staking. This arrangement aligns with automated market-making or high-frequency trading strategies, perhaps using colocated servers or latency-optimized execution systems.
Currently, the trader holds long positions worth $175,000 for the Solana SOLUSD/Tether USDTUSD perpetual futures trading pair, while also maintaining a $20,000 short position on Dogecoin DOGEUSD.
