**How to evaluate a trader on Copy Trading in #Binance? 🔍**
1.Check his statistics within the platform:
- Historical ROI: Look for a trader with **consistent** profitability over 6 months+ (not just monthly!).
- Maximum Drawdown: If his maximum loss is above 20%, he is high risk! ⚠️
- Number of Followers: Most popular ≠ best! Focus on results.
2.Trading Strategy:
- Win Rate: 60%+ with a Risk/Reward ratio of 1:2 is better than 90% with 1:0.5.
- Average Trade Duration: Does he trade daily (scalping) or follow long trends? Choose what suits your style.
3.Leverage Ratio:
- Avoid those who use high leverage (like 50x) ← it amplifies losses!
- Check his previous trades: Are most of them profitable or speculative?
4.Asset Diversification:
- Does he trade different coins (#BTC, #ETH) or focus on one market?
- It's better to be diversified to reduce risks. 💼
5.AUM (Assets Under Management):
- If he manages large amounts (like $1M+), his profits may be lower due to the difficulty of executing trades quickly.
6.Transparency:
- Check the complete trade history (not just the successful ones!).
- Does he update his strategy as the market changes?
7.Start with a small test:
- Allocate a small amount (like $50) and monitor his performance weekly before increasing the amount.
**Tip:** Do not copy traders during strong volatility or major news (like interest rate announcements)!
