Hello, crypto friend 👋. If you are here, it’s because you have probably heard about copy trading and want to know how to make the most of it. And I don't blame you! This tool is one of the most interesting that Binance offers, especially if you are just starting out or if you prefer to let the experts do the heavy lifting for you. But how to choose the right strategy? Today I will guide you step by step so you can set your filters optimally and aligned with your goals.
What is Copy Trading?
For those who don’t know, copy trading is like having a 'financial advisor' in the crypto world. Basically, you copy the trades of expert traders, replicating their moves in your own account. Binance has simplified this process, allowing you to filter the best traders according to your risk and performance preferences. Now, let's get to the point: how to set those filters to work in your favor?
Three Key Strategies for Copy Trading
1. Maximize Gains
Are you one of those who likes to go all in? This strategy is for you. Here we look for traders with high returns, even if that means taking on more risk.
Filter Setup:
Time Range: 7 days (to capture recent returns).
PNL: 500,000 USDT in 7 days (traders with high profits).
ROI: Greater than or equal to 100% (explosive returns).
MDD: Less than or equal to 50% (we accept moderate drawdowns).
Trading Days: Greater than or equal to 30 days (some history).
AUM: Greater than or equal to 25,000 USDT (we avoid traders with little capital).
Minimum copy amount: Less than or equal to 10 USDT (accessible to everyone).
Effectiveness Rating: 75%
Advantages: High potential for short-term gains.
Risks: Volatility and potential significant losses.
2. Balance Gains and Risk Management
If you prefer a more moderate approach, this strategy seeks a balance between attractive returns and adequate risk control.
Filter Setup:
Time Range: 30 days (consistency in the medium term).
PNL: 1,000,000 USDT in 30 days (solid gains).
ROI: Greater than or equal to 50% (decent returns without craziness).
MDD: Less than or equal to 30% (limits losses).
Trading Days: Greater than or equal to 90 days (more extensive history).
AUM: Greater than or equal to 100,000 USDT (experienced traders).
Minimum copy amount: Less than or equal to 50 USDT (a quality filter).
Effectiveness Rating: 90%
Advantages: Perfect balance between risk and return.
Risks: Lower potential for extreme gains.
3. Maximize Risk Control with Moderate Gains
For the more conservative, this strategy prioritizes capital protection and consistency.
Filter Setup:
Time Range: 90 days (long-term evaluation).
PNL: 2,000,000 USDT in 90 days (stable gains).
ROI: Greater than or equal to 25% (conservative returns).
MDD: Less than or equal to 10% (minimal risk of losses).
Trading Days: Greater than or equal to 180 days (proven history).
AUM: Greater than or equal to 250,000 USDT (traders with high solvency).
Minimum copy amount: Less than or equal to 100 USDT (filters serious traders).
Effectiveness Rating: 85%
Advantages: Excellent risk control and consistency.
Risks: More limited gains.
Which to Choose?
Maximize Gains (75%): Ideal for those seeking thrills and high returns.
Balance Gains and Risk (90%): The most balanced option, recommended for most.
Maximize Risk Control (85%): Perfect for those who prioritize safety above all.
Final Tips
Diversify: Do not copy just one trader. Distribute your capital among several.
Monitor: Periodically review performance and adjust filters according to the market.
Align with your profile: Choose the strategy that best fits your risk tolerance.
Your Turn!
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What do you say? Ready to start copying like a pro? See you in the comments! 🚀
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