Welcome to the Copy Trading Guide

Copy Trading is a popular and effictive way to invest in the markets, but remember to never invest more than you can afford to lose. In this guide, we will walk you through all the essential settings and strategies needed to minimize your risk while maximizing your profits. We'll start with the basics and then dive into more advanced topics such as setting up a stop loss and managing risk. Our goal is to help you generate passive income without becoming greedy or taking unnecessary risks. By the end of this guide, you'll be ready to start your Copy Trading journey with confidence. So let's get started and explore the exciting world of Copy Trading!

Create an account

It is important to use the right platform, there are many copy trading providers and I have tried almost all of them, so I can recommend you without hesitation the one with the best traders. It is one of the 10 largest exchanges, but remember, we've seen what happend to FTX, so please only deposit what you can effort to lose.

Register now and get your bonus: https://bit.ly/copyexchange

Find a trader

Finding a trader is a crucial step in copy trading. You can use VST (Demo money / play money) to test all traders who have enabled it.

Diversify your portfolio by copying multiple traders for a better average and for finding the best one over a longer time period. Learn which numbers to look at and how to set up copy trades for each trader. Some traders provide info on their profile, such as using 5% of your funds as margin to open 20 positions or you look at their Trade History how many trades they have open at the same time. Look for traders with a long track record (3 months).

On the pictures below you can see the most important info's on the trader's profile, scroll down to see the descriptions.

Copy by position
Copy by fixed margin
Account Assets

This refers to the total amount of funds the trader is currently managing. This statistic is important to understand the trader's credibility and experience, as a trader with a larger account size may be seen as more experienced and trustworthy.

Risk

This refers to the amount of risk the trader is taking on in their trades. It is important to choose a trader who has a risk tolerance that matches your own.

Win Ratio

This refers to the percentage of trades that the trader has won. It is important to choose a trader who has a high win ratio, as it indicates that they have a successful trading strategy.

Average Profit / Losses

This refers to the average profit or loss on each trade. It is important to choose a trader who has a consistent record of profitable trades.

PnL Ratio

The PnL (Profit and Loss) ratio is a metric used to measure a trader's overall profitability. It is calculated by dividing the total profits by the total losses. For example, a PnL ratio of 3:1 means that for every dollar the trader lost, they made $3 in profit. This is a crucial metric to consider when choosing a trader to copy, as it gives insight into their overall success in trading. A high PnL ratio indicates a trader who is consistently profitable, while a low ratio may indicate a trader who is struggling to make profits.

Margin Median

This refers to the average margin used by the trader in their trades. It is important to choose a trader who uses margin responsibly, as excessive use of margin can lead to higher risk.

Leverage Median

This refers to the average leverage used by the trader in their trades. It is important to choose a trader who uses leverage responsibly, as excessive use of leverage can also lead to higher risk.

Overall, it is important to consider all of these statistics together when choosing a trader to copy. A trader who has a high win ratio but also takes on excessive risk may not be the best choice, while a trader who has a lower win ratio but uses responsible margin and leverage may be a better fit for your own risk tolerance.

FOMO (Fear of missing out)

Depending on your start, it's possible you pick a good trader and make some quick money, then you think you should invest more, and the next day the trader has a big loss day. So keep to your plan, don't invest all of your funds.

Risk Management

Remember to only invest what you can afford to lose. With copy trading, you can start with as little as $2-$10 depending on the trader. Over time, your investment can grow with APY. Check one of those APY calculators to see how your $100 can turn into $1,867 in 5 years, $10,818 in 8 years or $34,891 in 10 years with a 60% APY and monthly compounding (5% monthly), our traders make far more than 60% APY and trade more than once a month. Click theCalculatorsite or Investor.gov. Start small and watch your profits grow!

Copy Trading Methods

Copy trading can be done using two main methods: copy by position and copy by fixed margin. Both methods involve copying the trading activity of another trader, but they differ in how the funds are allocated and managed. Understanding the differences between these methods is important for successful copy trading, so let's take a closer look at each one.

Copy by position

Investors copy the same ratio of a share trading account, using funds from the copy tradng account.

Example: If the share trading account has a net asset of 1,000 USDT and uses 30% of the fund, copiers will also use 30% of their funds from the copy trading account, resulting in similar trading actions.

Copy by fixed margin

Investors can perform autonomous trading and set a fixed margin for each trade, using funds from the Futures account.

Example: If a copier sets 10 USDT as the margin for a single trade and the trader buys long BTC/USDT, the system will buy long BTC/USDT for the copier with a 10 USDT margin, using funds from the copiers Futures account. The trade will be displayed in the Position of the copiers USDT-M Standart Futures account.

Stop Loss Variants

Setting a stop loss is a crucial step in copy trading. It allows traders to automatically sell their positions at a predetermined price, protecting their investments from significant losses. Don't neglect this essential tool in your copy trading settings!

Copy by position

Set a "Stop Loss". As shown in the first image, the minimum Stop Loss is 10%.

Copy by fixed margin

Set "Cumulative Loss Protection" and Max. Copy Amount" to ensure that only the desired funds are used for the trader. As shown in the second image, the minimum Stop Loss is $10.

Crucial mistakes

I wanted to share with you a mistake I made. I accidentally set the wrong amount for "Margin" and "Max Copy Amount” which resulted in the trader using 100% of the funds in one trade = $42 loss instead of $4.2, because of this, it is important that you always set your "Max Copy Amount”.

It's also important to double-check all settings before executing a trade, and to always invest only what you can afford to lose, I've said it many times before, but it can never be said enough. I want to use this as a learning opportunity for all of us. Mistakes happen, but what's important is that we learn from them and use them to improve our strategies.

Check out our
YouTube Channel

We will be sharing more informative videos to grow your passive income soon.