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?
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.
WHO IS A MASTER TRADER IN COPY TRADING?
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WHO IS A MASTER TRADER IN COPY TRADING?
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?
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.
WHO CAN BE A MASTER TRADER?
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
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
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.
HOW TO BE A MASTER TRADER ON BYBIT
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.
