Topic: Copy trading profitable? - page 4. (Read 849 times)

If you are trading why not sell your trades to get a cut from other people profit. I see some traders in bitget gets a 10% from the profits of their followers. Not everyone is a protrader and I see some did make their followers made a big profit. Still this is not a risk free because they can still incur losses and you need to manage your bank roll and risk management.

This is really the case to think why I don't trust people who provide signals. Might say it was selfish not to share with others but I see this is more realistic than claiming their signals are good and right. Because the truth is that nobody has able to predict the market and all of these signals are just their speculations bound to be wrong. We'd rather make use of our knowledge and skill to create our own strategy, maybe this will work even better than others.

aka they want to increase the liquidity on their exchange. Most people don't understand copy traders only work when it was at a certain number of followers, enough to not tip the balance of demand and supply, buy and sell orders. Too much, you might as well just add more liquidity to a coin or exchange, reducing the spread. Or provide the liquidity for someone to dump their bag.

If you know what's going to happen with the market, then you can really be a lead trader. But in this world, there's no perfect prediction so lead traders can always make mistakes with the current market. There are just too many variables that would affect the current condition. It's everyone's ball game.

In terms of having the best crypto exchange, I think you would select the one that has the least fee per trade so you can get the most out of your trades. In general, it's just the same as long as you are trading in the correct way.

I am not a daily trader and only take advantage of the market situation to trade. But maybe many people use copy trading to trade because they follow professional traders and have a lot of money to trade.

But I believe professional traders can make a lot of money because they can analyze the market situation and know what to do. The thing to remember from all this is that whatever you choose, you have to be able to analyze and if you want to use copy trading to trade, make sure you follow someone with good judgment and you should also analyze before following him to trade. That way, you can avoid or minimize the risk of loss when the market reverses direction.

Some platforms incentivize traders with followers, or copy traders. So if you have a stable or profitable track record, people tend to follow you and their trades will make you money.

I wouldn't use it, just cause it causes dependency. Anyhow, if you were good trader why would you need to sell your trades?

To be on the list of traders that will be used as a reference for those who want to use copy-trading, it's difficult to achieve and be put there.

On a trading platform, E-toro which is known for its copy-trading feature, I think the candidates should really have good stats to be considered.

So my answer is yes, lead traders are truly making money as they won't reach their top status if they are not.

Lead traders, professional traders, big traders, or any trader that already reach the top-tier knowledge of doing trades are still committing losses. There's no perfect trader that has perfect winning stats.

But the good thing is that their winning stats are impressive and good.

In copy-trading, don't expect that it's always a win. More importantly, enough funds should always be there to keep up with that copied trader's activity. Not every day is the worst day and for sure, they can hit a good trade within a short period of time.

there is nothing wrong to experience copy trading as you will get a hold of why they are being promoted. as you said, try it with small funds, so if ever you lose, it is not hard from your pocket. copy trading is only good if you have no time and trying to understand the trading market. but it is still best if you learn it on your own, as you can gain some insights that are not being shared publicly and you will only learn by experience. just an example is - how to spot a potential pump and dump coin. if you have no experience, you have no idea that the team is about to rug pull. but by experience, you will know the warning signals if they are about to abandon the coin.

Maybe there are pro traders who can explain on why they did that move, if that so then it's possible to learn on them but I think most copy trading doesn't work like that. You can only copy the outcome of their analysis. This is why it's better to learn on our own. As usual, there will always be people who look for shortcuts. They don't want to venture the hard road so they will use a copy trade.

Etoro has this service but the reviews that they put can be one of their ways to market this service. They and the trader that is been followed are mainly the ones who earn a profit. Those who pay for such service can make a profit but that will be greatly lessened due to fees.

I tried copy trading last month since I saw lots of content creators in tiktok making a profit from it. I just want to know if it's real and don't have a confidence on it so I tried with 10 bucks only and chose a trader with almost perfect rating. The first two days was fine, after that his/her ratings sank in my third day following that trader and so on. If you are just curious like me, try it with $10 bucks to see it for yourself but imo better do it yourself when it comes to trading.

Copy trading can be very profitable based on different factors that need to be put in place. The market is very strict so we need to ensure we copy trade someone that has good knowledge about the crypto market and that has a good result as a trader. Someone can copy trade on Binance and some of the famous exchanges we have in the market.
One if the problem of copy trading is one can go and copy trade as the wrong time which can cause heavy loses in the crypto market is not in a bullish trend.

At the end of the day, lead trader is something to be careful about and there are not that many people who would be able to do that without needing some technological input. I mean it is clear that there is a need for a bot trading, or some signal tools, or something of another, because without those things you are not going to end up with anything good in the long run.

People who trade manually without needing anything else are not professional traders and they can't be at the top. However, you could end up with something that is doing a lot better and you would be profiting at a level where others can't if you do long term investment instead of focusing on lead trader.

Crypto exchange like Bybit or Kucoin doesn’t have that kind of strict requirements when it comes to lead trader because it’s based on your ROI and winning rate to become lead trader. Lead trader feature is only available on bot trading and not on regular spot or futures trading. Copy trade on exchange are meant for traders that use the bot so you can become a lead trader without being notice by you if you setup your privacy that allow copy trading.

On the Bybit.com exchange, it is much easier to get the status of a trading lead in financial terms, for this you need to deposit only $100 - https://www.bybit.com/copyTrading/en-US/master-trader But in addition to $100, you must produce a win rate of more than 60% or, oren ROI that is greater than 30%.

Copy trading is good if you're copying the right trader, If you don't have time to trade or don't want to learn trading ,if trading is not going well for you, And if you really want to leverage from trading because trading is actually not meant for everyone. There are good lead traders out there you can copy, but it will take you a lot of work, time and research to actually find a profitable lead trader to copy and you could do this by

1.spending time to go through the traders trading history and look at his previous performances ,
2.how many person's are copying his trades and
3.how he recovers a lose trade each time he looses a trade, this are factors you pay attention to when trying to copy a lead trader.

I have not used it on any crypto exchange before, but on Binance, I saw TraderWagon which you will link your Binance account with to be able to be a lead trader or if you want to copy trade. Even without registering, on Binance, you can see the positions taken by first 50 lead traders. There are other exchanges I also heard about like eToro, Bybit, MEXC, Gate.io and some others. But I do not know how reputed many of the exchanges are.

Can you let us know more about eToro, I haven't registered on the site yet. What criteria are needed before being a lead trader on the exchange? I mean the minimum amount of money needed by lead traders to open position. Also what is the maximum amount of profit in percentage that is deducted from people that copy lead traders that would be paid to the leader trader? And also what other profit do lead trader gets, like from trading fee and others?

Never mind me, I also wants to ask this question too, I noticed on Binance that before you can be a lead trader or copy trader, you have to register on another site, link you Binance account to it and Binance indicate that your KYC including your personal documents are also connected and known by the other platform which is TraderWagon. I too think this can result to KYC danger issues.

Trading has many mechanisms and copying another trader is like borrowing from his knowledge and tools, some leader traders with large followers go as far as even charging some percentages from the trades you copy them.
But as you said following your design pattern of trading is the best way, because you will understand your trading environment better and you will easily win the trade.
So, the best way is to develop your trading tool with the help of the knowledge you, get from others.

The reason why many exchanges allow this is because they know that the retail Public has no idea how to actually trade. So they provide these copy trader services because they make money off the commission.

The issue is that eventually those who run the signals eventually end up blowing their accounts and so does everyone who copied them. It’ll work for a while until it doesn’t pretty much. You can’t make any money long term with such services.