Copy trading is a system that allows users to automatically copy the trades of professional traders. Once you choose the trader you want to copy, the same trades are executed in your account according to a designated percentage of the capital you set.
: Binance platform and copy trading feature
Binance has launched the "Copy Trading" feature to be part of its platform within the Binance Strategy Trading section. This feature allows users to instantly copy the strategies of professional traders without the need for a deep understanding of technical analysis or risk management.
✅ Benefits of copy trading on Binance:
Automatic execution of trades.
Ability to customize investment size.
Transparent display of traders' results (profit rates, losses, number of copies...).
Option to stop copying at any time.
Suitable for beginners in the crypto world.
: Key conditions for choosing a trader to copy their trades
Choosing the right trader is crucial for the success of the copy trading experience. Here are the main criteria to consider:
1. Profit Rate
Monitor the trader's performance over different time periods: week, month, 3 months, year.
Avoid being dazzled by very high profits in a short period; it may be the result of uncalculated risks.
2. Drawdown
This indicator shows the amount of decline that occurred in the capital during trading.
Choose a trader who has a low drawdown (for example, less than 30%) to ensure they are not taking excessive risks.
