The strongest trainer is whoever is being played. If Red were still the strongest Pokemon trainer in the world, he wouldn't have lost to Gold even after 3 years of solid training on Mt. Silver. He wouldn't have been beaten by Nate in the Pokemon World Tournament.
I think Red is considered the greatest trainer because when he appears as an NPC he tends to be the ultimate challenge in the game. There has never been a game (yet) in which you fight Gold as an NPC, so it's really not "canon" how good of a trainer Gold is.
ErqB.