Copy trading is a mature investment strategy in traditional finance and has gained popularity in the cryptocurrency market. With copy trading, trading novices can easily replicate the trading strategies of seasoned experts and earn considerable profits by following their lead. Choosing the right trading guru is crucial in copy trading, as it directly determines whether you can obtain considerable copy trading profits. Please read on to fully understand copy trading and maximize your earnings.
What is Bitrue Futures Copy Trading?
Bitrue has always been a pioneer in cryptocurrency trading. Bitrue's futures copy trading, which is a low-slippage, low-latency, and low-maintenance trading product can alleviate your burden and profit with some of our most successful traders.
If you are unfamiliar with our copy trading product or the general cryptocurrency world, do not worry. With this comprehensive guide, you should be able to trade like a seasoned veteran at critical moments.
How to use Bitrue One-click Copy Trading?
Selecting A Trader To Follow
- Go to the Copy Trading homepage;
- View existing Traders;
- Select the trader you want to follow;
- Set the copy trading preferences and start copy trading;
- The trader opens a position and leads the copy trading operation based on the copy trading preferences.
Detailed instructions are as follows:
- Currency Pair to Copy Trade: Select the currency pair to copy.
- Position Type: Select the position type to copy.
- Leverage: Set the leverage of the position when following the trader's order.
- Fixed Leverage: When copying the trader's order, use a fixed leverage multiple to place an order. You may enter a value between 1-125.
- Follow Trader's Leverage: When copying the trader's order, place an order with the trader's leverage.
- Transaction Amount for Single Copy Trade: Set the opening amount or quantity when copying the trader's order. That is, every time the trader opens a position, the user will copy the order according to a fixed amount or a multiple of the order quantity for the trader. The default setting is a fixed amount of 10 USDT. You can choose to use a fixed copy trading amount or a multiple of the trader's order quantity.
- Fixed Amount: When copying the trader's order, use a fixed amount as the opening amount. You may enter a value between 10-1000.
- Multiplier: When copying the trader's order, use a multiple of the opening quantity as the opening amount. You may enter a value between 0.1-10.
- Maximum Amount per Position: No more copy trading will be conducted when the amount held while following the current trader reaches this amount. This is optional. You may enter a value between 100-10000.
Canceling Copy Trades
- Go to "My Traders" or the list on the Copy Trading homepage to find the trader you want to cancel copy trading for.
- Click on the "Edit" button to enter the "Edit Copy Trading" page.
- In the "Edit Copy Trading" page, click on the "Cancel Copy Trading" button in the upper right corner.
Closing Positions
Users can close positions on their own in "My Copy Trade(s)" - "Current Copy Trades" and the "Copy Trades" page on the futures page.
Notes:
- Each order copied by the user will be displayed in the following order.
- When closing a copied trade, only full closing is supported.
- When the user closes the copied trade on their own, the profit sharing with the trader must also be conducted.
How to avoid liquidation?
As we all know, market fluctuations bring risks. Before placing trades, please remember to transfer and deposit funds into your copy trading account. The deposited amount is called the Initial Margin. Due to price fluctuations of the underlying asset, your account balance may change. When your losses reach a certain level, your account balance will be lower than the minimum equity requirement, i.e., the Maintenance Margin. In this case, you must deposit more capital into your copy trading account, otherwise, you may be forcibly liquidated. Forced liquidation means reducing your exposure to assets to avoid losses beyond your tolerance.
In addition, you will receive notifications from Bitrue every time your margin account balance falls below the risk-reward ratio.
You can reduce the leverage and maintain sufficient margin to avoid liquidation when setting or editing your copy trading preferences.
How to Select a Trader?
One of the most common questions users ask is, how do I select a suitable trader to copy trade? First, let's take a look at the qualities of excellent traders. An excellent trader can:
- Maintain relatively stable long-term returns;
- Use stable trading strategies and know when to take profit and stop loss;
- Consider the interests of copy traders and not mislead them.
If this still sounds unclear, don't worry, Bitrue provides helpful information about traders' performance. By considering the following indicators, you can make better decisions.
- Consistently Good Performance Records
Do a quick check on the general indicators, such as overall rankings, current/historical copy trader counts, returns, total profits, copy trading volume, and win rate, to understand the level of trust other copy traders have in the trader. This is the fastest way to discover excellent social traders.
To examine a trader's situation, you can see how many people have actually invested money to copy trade them. You should also consider the profits copy traders have gained by following that trader. This data can be found on their profile page.
Analyze the trader's performance over a period of time. It is better if they have been trading for a longer time, so you can observe their performance in bull or bear markets. On the Bitrue copy trading platform, you can view a trader's performance record by visiting their profile page.
- Yield (%):
Positive yield indicates overall profit from investments.
- Total earnings:
The larger the total return, the stronger the trader's profitability. This is the most intuitive representation of a trader's profitability. If the profitability is gradually increasing, then this is likely the trader you want to follow in the future. You should probably consider others if there is a strange sudden increase or decrease.
You certainly want to follow a trader whose earnings constantly increase. Earnings should steadily increase. If earnings are sometimes high and sometimes low, then this trader might be trying his luck, which is why they sometimes make big profits and sometimes significant losses. Overall, it is better to follow a trader who can generate stable monthly returns of 10% or higher.
- No. of followers:
Like social media, many followers might indicate that the trader is worth following. You can also think of them as influencers on social media. If they lose money, why would others want to follow them? Think about it, these returns may also go into your pocket!
You can also benefit from social trading. You can seek traders' opinions, learn their trading skills, and receive trading recommendations.
- No. of Transactions:
When choosing the best traders to follow, you should also consider the number of transactions they make. If the number of transactions is high, such as reaching 100 or more, it indicates that they are relatively reliable. This high number might indicate that the trader has rich knowledge and their success is not just due to luck. Obviously, the trader's strategy also has a certain impact. A decrease in the number of transactions may also be normal, as long-term traders tend to hold positions for a longer period.
In summary, when looking for excellent traders, please pay attention to the following:
- High yield, high earnings, and higher total follow-up earnings are the most important data indicators.
- By looking at the trader's length of residence, number of transactions, and yield, we can understand whether the trader can maintain profitability in the long term.
- We can judge whether the trader adopts a specific trading strategy by looking at the position and transaction volume.
- By looking at AUM, we can understand their popularity and the recognition of others for their trading ability.