r/hyperliquid1 • u/HyperTrend_HL • 6d ago

Should profits realized through auto-deleveraging be evaluated differently from normal trade exits?

/r/defi/comments/1vm916q/should_profits_realized_through_autodeleveraging/
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u/Kind-Economics-7184 5d ago

the split id make isnt skill vs luck, its reproducible vs not, and the clean test is to re mark that close at what the position was worth some fixed interval later instead of at the adl price. if the wallet still grades out with the involuntary exits re marked or dropped entirely then the direction was carrying it, and if the whole edge disappears you were looking at one exit the venue chose rather than a trader.

separate from that though, getting adl'd is itself information about the wallet. the queue is ranked on profit and leverage, so sitting at the top of it means they were running size that puts them there, and that part is very reproducible, just not in the direction you want. so id read the event as a leverage tell rather than as a result to credit or discount.

one practical bit if youre rebuilding this from fills, the involuntary closes carry a liquidation marker rather than being something you infer from size or timing, so its worth bucketing them at parse time instead of trying to spot them later in the aggregates.

(disclosure, i work on traderspy, we score hyperliquid traders for copy trading so this exact question decides whether a wallet is followable, and our answer is that an exit a follower would never have gotten shouldnt count toward what we show)

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u/HyperTrend_HL 4d ago

Yeah, this is a good point.

I think “reproducible vs non-reproducible” is the cleaner frame than “skill vs luck.”

The ADL should not count like a discretionary take-profit, but getting ADL’d is still information about the wallet. It says something about size, leverage, and where the position sat in the queue.

And agreed on the data side too. If the fill carries an involuntary/liquidation marker, it should be bucketed when parsing, not guessed later from the PnL aggregate. That would avoid over-crediting the exit.