What is copy trading?
In short, you can choose to follow a professional trader, copy their futures trading activities, and earn profits from it. As an investor and follower, the system will automatically replicate the behavior of the professional trader when they start or end a trade, without any manual intervention. You may profit or lose in copy trading.
Copy trading is undoubtedly a very novel concept that can help followers earn profits, but there are still some aspects that you need to pay special attention to. This article will provide detailed investment guidance and tips later.
Most importantly, make sure you are not blindly following other traders. Before investing, take the time to search and view the trading performance of the trader.
Why choose Bitrue's Copy Trading?
Bitrue makes futures trading easier. Thanks to the user-friendly design, transparency, and a win-win trading environment between traders and followers.
Investors/followers can easily choose to follow a professional trader, copy their trading activities and earn profits from it. When a professional trader starts or ends a trade, the system will automatically replicate their behavior without any manual intervention.
Integrity is the foundation of a good partnership. In order to maintain a transparent platform trading environment for all parties, all trader data is open and accessible, and Bitrue has strict scrutiny of the records. The data reflect the actual trading behavior on the platform. Thanks to this, you can safely use Bitrue's Copy Trading because all trading and follower records can be traced on the platform.
In addition, profit data is displayed in real-time, and the profit is shown for each copy trade. Copy traders can also modify the copy amount and futures type, or stop copying and close positions to cut losses.
Common terms in Bitrue copy trading
Profitability: The sum of profits from closed positions over a specific period of time, as a percentage. As all positions are currently copied with full leverage, the profitability of a single position is calculated as realized P/L divided by the margin requirement, multiplied by 100%.
Profit: The sum of profits from closed positions over a specific period of time.
Win rate: The percentage of profitable positions out of all closed positions over a specific period of time.
Total Followers: The total number of users who have followed the trader. Duplicated follows from the same user will only be counted once.
AUM (Assets Under Management): The total amount of funds managed by the trader, plus the total amount of copy trading funds used by all followers (including historical ones).
Current Followers: The current number of users who are following the trader, as well as the maximum number of users who can follow the trader according to their settings.
Expected Referral Fee: The estimated referral fee that the trader will receive from the open positions of their followers.
| Trading Pairs | Leverage Max |
| BTC/USDT | 125x |
| ETH/USDT | 100x |
| XRP/USDT | 75x |
Note: The available trading pairs for copying may vary for each trader based on their settings.
What fees are required for copy trading?
The transaction fees incurred during the copy trading process are the same as the futures funding rates and transaction fees for regular futures trading on Bitrue. There are no other transaction fees incurred in addition to this.
Which account do I need to transfer funds to participate in copy trading?
You need to transfer funds to your copy trading account to participate in copy trading.
Are there any restrictions on the underlying asset's price during copy trading?
There are no particular restrictions on the underlying asset price during copy trading. The same rules apply to regular futures trading.
Can I transfer funds from my copy trading account during the copy trading process?
If you have open positions in your copy trading account, you cannot transfer funds out of it.
Is there a price difference protection mechanism for copy trading?
Copy traders have a 0.5% price difference protection mechanism in place when opening a position. If the copy trader's opening price exceeds the trader's opening price by more than 0.5%, the copy trading process will fail.
Can I follow multiple traders at the same time?
Currently, Bitrue copy trading only allows users to follow one trader at a time. If you want to switch to another trader after already following one, you must first cancel the previously followed trader and then follow the new one.
How to follow a trader?
- Select a trader.
- Click "Copy Trade" to enter the copy trade settings page.
- You can choose different copy trade futures types, copy trade position types, copy trade amount per trade, leverage, and risk control on the settings page.
- Click "Save".
Detailed instructions are as follows:
- Copy Trade Futures: Select the trading pair you want to copy trade.
- Position Type: Choose the position type you want to copy trade. Currently, only full position copy trade is supported.
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Leverage: Choose the leverage of the position when copy trading.
- Specified Leverage: Place an order with the specified leverage when copy trading.
- Follow Trader's Leverage: Place an order with the same leverage as the trader when copy trading.
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Copy Trade Amount Per Trade: This refers to the fixed amount or fixed multiple of the trader's position value that the user will copy trade each time the trader opens a position. The default setting is a fixed amount.
- Fixed Multiple: 0.1 to 10.
- Fixed Amount: 10 to 1000.
- Maximum Holding Amount: After the principal amount of the copy trading account following this trader reaches this value, it will no longer follow orders.
What are the reasons for failing to follow a trader?
The number of followers of the trader has reached the limit.
Your current identity is a trader.
The trader's identity has changed.
What are the reasons for failing to copy trade?
The copy trading relationship has been canceled (the trader has been removed or the follower has actively canceled the copy trading).
The available margin in the copy trading account is insufficient.
The copy trading amount reaches the maximum copy trading limit set.
When the latest price of the trading pair has exceeded the 0.5% interval of the first transaction price of the trader's position, the follower will cause the copy trade to fail.
Will the copy trading continue after a copy trading fails?
If a copy trade fails to open a position, the system will continue to copy the trader's subsequent opening positions.
If a copy trade fails to close a position, the system will not copy the trader's subsequent closing or opening positions until the copy trading user manually closes the position.
How to cancel copy trading?
You can cancel copy trading by entering the copy trading settings.
On the "Copy Trading - My Traders" page or the "Traders I'm Copying" page, click "Edit".
Click "Cancel" to cancel copy trading.
Do copy trading users need to share profits with traders when closing copy trading positions on their own?
Yes, profit sharing is required.
How to close copy trading positions?
Follow the trader to close position: When the trader closes a position, the copy trading system will automatically synchronize the closing of your copy trading position with the trader's position.
Close position for Followers: Followers can independently close their current copy trading position by clicking "Copy Trade" on the "My Copy Trading" page or on the futures page (profit sharing with the trader is required even when followers close their positions by themselves).
System forced liquidation: When the floating loss amount of the current copy trading position is greater than the available assets in the copy trading account, the position will be liquidated automatically.
How to modify the profit-sharing ratio?
The default profit-sharing ratio is 0, and the trader can edit it in the settings.
After the modification, new followers will be shared profits according to the latest profit-sharing ratio, but it does not affect the profit-sharing ratio of the previous followers before the modification.
How does a trader place an order?
When the trader activates the status to initiate copy trading, they can directly place a futures order for the corresponding position and mode of the currency pairs to initiate copy trading on the futures trading page.
Profit sharing and settlement rules
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Profit sharing settlement time
- The profit sharing settlement is conducted at 3:00 am (UTC) every day and settles the orders that have not been settled for profit sharing before 4:00 pm (UTC);
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Settlement method
- When the trader closes their position and the follower generates a profit that meets the profit sharing requirement, the system will deduct the profit sharing from the follower's account in advance. The settlement will be conducted the next day at 3:00 am (UTC), and the actual total profit of the follower's profit-sharing orders will be calculated. This "actual total profit" is the actual profit that the trader should receive.
- If the actual profit to be paid is lower than the profit sharing that has been deducted in advance from the follower's account, the excess profit sharing will be returned to the follower's account, and the remaining part will be settled to the trader.
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Profit sharing requirement
- If the follower and the trader have no position relationship (i.e., all the follower orders for the day have been closed), profit sharing will be conducted the next day.
- If the follower has any unclosed follow-up orders, profit sharing will not be conducted until the last position is closed, and the profit will be summarized the next day.
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Profit sharing account
- The trader's profit sharing will be settled to the trader's order-following account.
Example:
- User A follows the trader's opening of a BTC/USDT futures order, which generates a profit of 100 USDT and has been closed before 4:00 pm (UTC) on the same day. Assuming the profit sharing ratio is 10%, the profit sharing of 10 USDT will be deducted in advance when closing the order. The profit-sharing settlement will begin after 3:00 am (UTC) the next day, and the accumulated profit-sharing of 10 USDT will be displayed on the profit-sharing page.
- User B followed a trader's position and opened two futures trades: BTC/USDT and ETH/USDT. The first futures trade gained 100 USDT while the second one lost 10 USDT. Both futures trades were closed before the settlement time on the same day.
Assuming the profit-sharing ratio is 10%, at the time of closing:
- The profit of the first futures trade was subject to a 10% deduction, which is 10 USDT.
- The second futures trade was not subject to any deduction.
After the settlement time at 3:00 (UTC) the next day, the profit-sharing will be calculated as follows:
- The trader's profit share for the first futures trade is (100 USDT - 10 USDT) * 10% = 9 USDT.
- As the deduction was 10 USDT, but the actual profit share was only 9 USDT, the remaining 1 USDT will be refunded to the user.
- User C follows the trader's opening of BTC/USDT and ETH/USDT futures orders. If the trader's profit or loss orders for the two pairs are not closed before the settlement point, no profit sharing will be deducted in advance. Profit sharing will be conducted after the position is closed, and settlement will begin at 3:00 am (UTC) the next day.