CopyTradingDiscover

Copy trading is a popular investment strategy that allows you to automatically replicate the trades of experienced and successful traders.

Here's a breakdown:

We have two modes of copy trading;

1. Fixed Ratio. Fixed Ratio mode allows you to copy trades proportionally based on the lead trader's orders.

2. Fixed Amount: Fixed Amount mode allows you to copy trades with a fixed amount of funds allocated to each trade.

Today I will be focusing on Fixed Ratio Mode.

Here's how it works :

- Proportional Allocation: You set a total portfolio investment amount, and the system copies trades in proportion to the lead trader's position size.

- Trade Size Calculation: The trade size is calculated based on the lead trader's order cost and margin balance. For example, if the lead trader has a margin balance of 1,000 USDT and opens a position with an order cost of 500 USDT (50% ratio), your order would be opened using the same 50% ratio.

- Position Sizing: The system adjusts the trade size based on the lead trader's position size and your available balance.

Key Benefits:

- Risk Management: Allows you to control the proportion of your portfolio allocated to each trade.

- Flexibility: Automatically adjusts trade size based on the lead trader's position size.

Important Considerations:

- Minimum Balance Requirement: The minimum portfolio balance required for Fixed Ratio mode is 100 USDT.

- Slippage Protection: Binance provides slippage protection to limit losses due to market volatility.

Now on the juicy parts 🥳🤤
Remember to set auto invest on.
After setting copy amount and total stop loss, go to advanced settings.
Set a leverage that you're comfortable with.
Set Take Profit at 4% ROI. The ensures that whether the lead trader closes their trade or let's it run for awhile, you will have taken profits . This is the setting that maximises your profits.
Set Max Cost Per Order at 33.33%
Max Cost Per Order refers to the maximum amount of money you're willing to spend on a single trade or transaction when following or copying another trader's actions. This setting helps you manage risk and control costs by limiting the amount you can lose on each trade.

Important Considerations
Successful copy trading relies on careful research and selection of lead traders, understanding their strategies and risk profiles, and active risk management (e.g., using stop-loss orders).
Diversifying by copying multiple traders with different strategies is a suggested risk mitigation technique.
Mock Copy Trading allows users to test strategies without financial risk.

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