What is the "Fade the Losers" strategy?
Fade the Losers is a contrarian strategy where you bet against consistently losing traders. If a trader has a strong track record of incorrect predictions, doing the opposite may provide an edge. Merlin tracks the worst-performing traders to help identify fade opportunities.
How does Merlin identify losing traders?
Merlin ranks traders by negative P&L across 24h, 7d, 30d, and all-time periods. Traders with the largest losses appear at the top. The data is sourced from on-chain Polymarket trading activity and updated in real time.
Is fading losers a reliable prediction market strategy?
Fading losers can be useful as one signal among many, but is not guaranteed. Consistently losing traders may have had bad luck on high-variance bets. Always combine this data with your own analysis and risk management.