Gate.ioBlogHow Does Gate.io Copy Trading Make The ROI Of The Copier Close To That Of The Lead Trader?
How Does Gate.io Copy Trading Make The ROI Of The Copier Close To That Of The Lead Trader?
19 July 17:29
What Is Copy Trading?
Copy trading is a new way to achieve a win-win future transaction between the lead trader and the copier. The high-quality lead traders enter copy trading to lead trading and attract potential users to copy, so as to obtain the profit share, but also to meet the demand of users who are weak in market judgment and help them avoid missing a good time! Learn More
What kind of people are suitable for leading?
1. Quality traders with good judgment on the market
2.Influencers in crypto market who are capable of leading trading
3. Investors with rich trading experience
What kind of people are suitable for copying?
1. Investors who are weak in market judgment and confused about investment
2. Investors who want to try future but do not have a technical foundation
How to avoid the reasons that will cause the inconsistency between the ROIs of traders and copiers Reason One: The different deposit amounts between the trader and the copier will lead to a different ROI.
If the copier has insufficient funds, he will be unable to follow the trader in the follow-up trades.
The current logic of the copiers: the copier follows the position change of the trader for as long as his/her copy funds’ balance allows. If the previous operation/trade of the trader occupies all of the copier’s funds, the copier cannot follow the subsequent trades of the trader.
How to avoid the problem: The copier should prepare sufficient funds to cope with the changing market environment and ensure that the copiers can follow the operation of the lead trader in future trading.
Reason Two: When the lead trader carries out a two-way position operation on a future contract. The copying logic is to make a copy transaction according to the change of the consolidated position. The copiers can only follow the change of the position of the trader, and cannot follow his two-way position trade. In the current version, the copiers will not be able to copy if the lead trader conducts a two-way future operation.
How to avoid the problem: The lead traders are advised to only carry out one-way position trading as much as possible.
Reason Three: The leverage of the copiers and traders is inconsistent. Currently, considering risk control, the maximum leverage of future copiers is 20 times, while the maximum leverage of some future traders is 100x, and the inconsistency of leverage may lead to inconsistent benefits between the two.
How to avoid the problem: Try to keep the same leverage.
The steps of the copier settings: enter copy trading homepage as shown in the figure - Filter the suitable traders - click the "copy" button or "advanced copy" in the lead trader home page- Parameter settings
Reason Four: the copiers don't use copy multiplier properly.
How to avoid the problem:
Copy multiplier refers to the multiple of the trader's position change.
For example, if you set 10 times, the trader adds 10 futures and the copier will increase the position 10 * 10 = 100 futures, and the copy multiplier can be set between 0.01 and 100. It is recommended to set the copy multiplier according to the fund amount of copiers and the proportion of funds of traders. For example, when the interest of the traders is 1000usdt, and the copiers' fund is 100usdt, it is recommended to set the copy multiplier to 0.1 (100/1000), and the copier's fund is 5000usdt. The copy rate can be set to 5 (5000/1000=5).
It is recommended to set the copy multiplier:
Copy multiplier=fund amount of the copiers/the fund amount of the lead trader.
Author: Copy Trading
This article represents only the researcher's views and does not constitute any investment advice. Gate.io reserves all rights to this article.
Reposting the article will be permitted provided Gate.io is referenced.
In all other cases, legal action will be taken due to copyright infringement.
This page is not intended for residents and citizens of Spain, Cuba, Bolivia, Venezuela and other Spanish-speaking jurisdictions listed in the Restricted Locations related terms of Gate.io's User Agreement.Español
This page is not intended for residents and citizens of France, Canada and other French-speaking jurisdictions listed in the Restricted Locations related terms of Gate.io's User Agreement.Français (Afrique)