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A man that had been transitioned to a woman is still full of testosterone and can easily beat the competition. Even if he gets medical treatment, the muscle and bone anatomy is still designed to be tougher than that of a woman. A woman that has transitioned to man is weaker than her competitors.
A woman transitioning to be a man will receive testosterone, which will make him be able to compete fairly with biological men. Trans people can also have surgery to change their bone structure.
Someone who is not taking hormones or hasn't had surgery to change their bone structure should compete with their biological gender.