Duplicate successful trading strategies (2024)

Copy Trading is one of the best ways for traders to emulate the successes of famous traders and to profit from them in the market. Copy-trading, which is an established strategy in traditional finance, has proven to be a popular tool in the cryptocurrency markets. There is no more important factor in kopi trading than choosing the right master trader, a choice that will make or break your cryptocurrency kopi trading. Learn about kopi trading and master traders to get the most out of your trading.

WHAT IS COPY TRADING?


Copy trading is a popular strategy where novice traders replicate orders from seasoned Master Traders with proven profits. You can manually copy a Master Trader's moves or use automated software to mirror their trades. For instance, Bybit provides a convenient platform for easy, flexible automated crypto copy trading where you can freely chat with top Master Traders.


Copy trading is often compared to mirror trading, which is largely similar - you automatically follow a pro trader's market activity. The key difference is copy trading allows customizing and applying your own judgment when mirroring moves. Mirror trading mandates precisely matching the trader, even if you disagree.

With copy trading, beginners can profit without deep market knowledge or trading skills. It's also time-saving since it's nearly all automated based on the Master Trader. Like other auto-trading strategies, copy trading removes emotion from decisions and performance.


Traders can become Master Traders to share their expertise and strategies while earning extra profits from loyal followers. Master Traders receive compensation for providing guidance.

At present, Bybit supports crypto copy trading solely for derivatives markets. Master Traders make 10% fees on profits produced by their copying followers.


A Master Trader's strategies and trades are copied by followers. Master Traders have proven records of excellent performance and profits - otherwise, why copy them? Fame isn't required. Master Traders can have low profiles yet deliver results through strong win rates and profitability.

HOW DO MASTER TRADERS EARN PROFITS?


Master Traders mainly profit from fees on follower returns in copy trading. Since it's automated, a follower's earnings are easily attributed to the Master Trader.

As stated, Bybit Master Traders get 10% of follower profits. Besides fees, Master Traders build a follower base, benefitting their reputation.

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WHO CAN BE A MASTER TRADER?

Any trader who develops the ability to consistently and reliably turn a profit might be a candidate to be an Master Trader. To become a successful trader whom others want to copy, you‘ll need to master the following competencies.

Technical Analysis Proficiency

Master Traders have to be well-versed in the key techniques of technical analysis in order to analyze crypto price patterns and trends.

Fundamental Analysis Skills

While reliance on technical analysis of price charts is essential, it isn’t sufficient to become successful. Master Traders also need to understand fundamental analysis of the crypto market in order to stay on top of industry developments, and to target asset specifics, environmental and political factors, and more.

Reliable and Long-term Oriented

A Master Trader differs from someone who is simply “good at trading.” A good trader might be in the game for short-term gains. A Master Trader, on the other hand, must instill confidence in their ability to lead their followers. This requires a long-term focus and the ability to earn trust.

Thought Leadership

Great Master Traders aren’t only profitable: They also excel at sharing valuable, qualitative knowledge with their followers — or indeed, with anyone motivated to listen to them online. Online publications, such as market analysis blog posts and industry opinion pieces, are a great way for Master Traders to enhance their reputations as traders worth copying. Being a Master Trader is a great source of additional profit for experienced traders. At the same time, it creates additional responsibilities. Master Traders on most platforms, including Bybit, may be subject to penalties if caught in any form of malicious master trading.


HOW TO CHOOSE A MASTER TRADER ON BYBIT


Choosing a good Master Trader is undoubtedly the key element of your copy trading strategy, particularly if you’re a novice trader. While Bybit already helps you filter out the top traders according to different categories, such as top traders by ROI and lowest drawdown, here are some tips that will help you make an informed decision when choosing a Master Trader.

Profit and Loss

The overall profit and loss figures for a trader over a long-term period are the critical indicators to look at. There’s no point in following an MT who isn’t posting solid return figures.

Besides the overall return figures, it pays to look at the 7-day profit and loss (P/L) ratio. This measure will tell you how successful a trader has been in the most recent period. For instance, a P/L ratio of 100:1 indicates that over the last 7-day period, the Master Trader has lost $1 for every $100 earned.

Followers & Community

On most copy trading platforms, you can view the total profit each Master Trader has helped their followers to earn. This is referred to as cumulative profit. Since profit is cumulative, the more followers an MT has, the higher their total profit. A trustworthy Master Trader will have many followers since they’ve proven their success in trading over a long period.


Trading Volume

A Master Trader’s overall trading volume is also useful data. It may reveal both Master Traders who are very active and consistent (high trading volumes), as well as those who are more efficient (lower volumes coupled with higher total profits).

Trading History

Perusing a Master Trader’s past trading history is a great way to gain insight into their style of trading. At the end of the day, you’ll need to be comfortable with the trading style, including the risk tolerance, of your chosen Master Trader.


HOW TO BE A MASTER TRADER ON BYBIT


Choosing a good Master Trader is undoubtedly the key element of your copy trading strategy, particularly if you’re a novice trader. While Bybit already helps you filter out the top traders according to different categories, such as top traders by ROI and lowest drawdown, here are some tips that will help you make an informed decision when choosing a Master Trader.

Profit and Loss

The overall profit and loss figures for a trader over a long-term period are the critical indicators to look at. There’s no point in following an MT who isn’t posting solid return figures.

Besides the overall return figures, it pays to look at the 7-day profit and loss (P/L) ratio. This measure will tell you how successful a trader has been in the most recent period. For instance, a P/L ratio of 100:1 indicates that over the last 7-day period, the Master Trader has lost $1 for every $100 earned.

Followers & Community

On most copy trading platforms, you can view the total profit each Master Trader has helped their followers to earn. This is referred to as cumulative profit. Since profit is cumulative, the more followers an MT has, the higher their total profit. A trustworthy Master Trader will have many followers since they’ve proven their success in trading over a long period.

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HOW TO BE A MASTER TRADER ON BYBIT

Derivatives Copy Trading

To become a Master Trader in Derivatives, the first prerequisite is that you must not be following another Master Trader. You can also register only one Derivatives Master Trader account, and need to deposit a minimum of $100 or equivalent to start.

Bybit has a Gear Up program for aspiring Master Traders to graduate into full Master Trader after completing the induction program. Under the Gear Up program, you first submit your application, become prequalified, and then graduate into a full Master Trader by completing a set of compulsory tasks. These include a minimum of three trades with a profit of at least 50 USDT, reading the penalties for malicious traders, and joining the platform’s Telegram group.

Duplicate successful trading strategies (2024)

FAQs

Can you be successful with copy trading? ›

Yes, copy trading can be profitable for investors who carefully select skilled traders to follow and manage their risk effectively. However, success in copy trading depends on various factors, including the performance of the chosen traders, market conditions, and risk management strategies employed by the investor.

What is the 11am rule in trading? ›

What Is the 11am Rule in Trading? If a trending security makes a new high of day between 11:15-11:30 am EST, there's a 75% probability of closing within 1% of the HOD.

What is the best copy trade strategy? ›

Remember, a good copy trading strategy involves looking not only at past performance but also at a trader's current situation, with a focus toward the future.

How much money do day traders with $10,000 accounts make per day on average? ›

How much money do day traders with $10000 accounts make per day on average? On average, day traders with $10,000 accounts can make $200-$600 per day, with skilled traders aiming for 2%-5% returns daily. So, it is possible to achieve a daily profit of $200 to $600 with a $10,000 account.

What is the downside of copy trading? ›

Risk of Loss: While copy trading can offer the potential for profit, it also carries inherent risks. Investors may incur losses if the traders they are copying experience a downturn in performance or make unsuccessful trades.

Which trader is best for copy trading? ›

13 Best Copy Trading Platforms 2024 – Complete List
  • eToro – The overall best copy trading platform in 2024. ...
  • Vantage Markets: Well regarded copy trading platform. ...
  • AvaTrade: This popular CFD broker has developed AvaSocial, a user-friendly app supporting copy and social trading.
Jul 5, 2024

What is the 3-5-7 rule in trading? ›

A risk management principle known as the “3-5-7” rule in trading advises diversifying one's financial holdings to reduce risk. The 3% rule states that you should never risk more than 3% of your whole trading capital on a single deal.

What is the 15 minute rule in trading? ›

You can do a quick analysis, adjust your trading strategy and get into a good position well after the crowd pulls the trigger on a gap play. Here is how. Let the index/stock trade for the first fifteen minutes and then use the high and low of this “fifteen minute range” as support and resistance levels.

What is the 90-day trading rule? ›

If you don't meet the call, you'll be placed on a 90-day restriction period, during which you can only trade on a "cash available basis," which is the equivalent to your current firm maintenance excess, until you satisfied the call.

Is copy trading smart? ›

One of the significant benefits of copy trading is the ease with which you can diversify your portfolio. By following different investors and investing in various assets, you can achieve a well-diversified portfolio with minimal effort.

Which trading strategy has the highest success rate? ›

Indicator-Based Directional Trading

This strategy uses an indicator to determine the direction of the trade. The indicator provides a clear signal when it's time to enter or exit a trade, making it easy to work with. Traders who use this strategy can expect to see consistent results and high success rates.

Which trading strategy is most accurate? ›

Trend trading strategy. This strategy describes when a trader uses technical analysis to define a trend, and only enters trades in the direction of the pre-determined trend. The above is a famous trading motto and one of the most accurate in the markets.

Can you make $200 a day day trading? ›

A common approach for new day traders is to start with a goal of $200 per day and work up to $800-$1000 over time. Small winners are better than home runs because it forces you to stay on your plan and use discipline. Sure, you'll hit a big winner every now and then, but consistency is the real key to day trading.

How much money do you need to make 100 dollars a day day trading? ›

You're really probably going to need closer to 4,000 or $5,000 in order to make that $100 a day consistently. And ultimately it's going to be a couple of trades a week where you total $500 a week, so it's going to take a little bit more work.

What strategy do most day traders use? ›

Best Strategies for Day Trading
  • Momentum Trading. This type of strategy often focuses on high-performing stocks. ...
  • Scalping. ...
  • Trend Following. ...
  • Gap Trading. ...
  • Ichimoku Kinko Hyo Indicator Trading. ...
  • Breakout Trading. ...
  • Range Trading. ...
  • News Trading.
Apr 15, 2024

Can you really make money from copy trading? ›

As mentioned before in the introduction, copy trading can be a profitable way of investment, and that answer is just a concise summary of a longer story. However, the worth of copy trading goes beyond the potential for financial gains. It's a pursuit that's well worth dedicating time to understand comprehensively.

Can you live off copy trading? ›

The answer to the question “is copy trading profitable” is YES. If a trader can identify a successful trader and mimic their deals, copy trading may be profitable. Yet, there is always a danger because even seasoned traders can make errors and lose money.

Is Copytrade worth it? ›

Can copy trading be profitable? If you find a successful trader to copy, copy trading can certainly be profitable. However, trading in general is inherently risky, and copy trading is no different.

Does copycat trading work? ›

Copycat investing has mixed results, although there has been a strong rise in the strategy in recent years. The best investors to copy are successful money managers, buy-and-hold managers, and activist investors.

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