COPY TRADING: LEADER PROFIT - NO GUARANTEE OF MY RESULTS
The most dangerous mistake here, in my opinion:
is to open the list of traders, find the biggest ROI, and hit “copy”.
I would look differently.
Not just:
“How much did he make?”
But also:
what time period;
with what drawdown;
how many trades there were;
how stable the result is;
what portion of my capital I’m willing to allocate to this.
And even after that, my trade still may not be executed at exactly the same price as that of the lead trader.
The market moves.
There is liquidity.
There is slippage.
So for me, Copy Trading isn’t “hand over money to the trader and forget about it.”
It’s the automation of executing someone else’s strategy.
And the risk still remains mine.
#CreateWithBinance #ShareMyTradFi #CopyTrading
The most dangerous mistake here, in my opinion:
is to open the list of traders, find the biggest ROI, and hit “copy”.
I would look differently.
Not just:
“How much did he make?”
But also:
what time period;
with what drawdown;
how many trades there were;
how stable the result is;
what portion of my capital I’m willing to allocate to this.
And even after that, my trade still may not be executed at exactly the same price as that of the lead trader.
The market moves.
There is liquidity.
There is slippage.
So for me, Copy Trading isn’t “hand over money to the trader and forget about it.”
It’s the automation of executing someone else’s strategy.
And the risk still remains mine.
#CreateWithBinance #ShareMyTradFi #CopyTrading