The crypto market is volatile. Although Gate.io copy trading has absorbed a number of excellent traders settling in, copiers still need to maintain a good copying mentality and habits, Also, they should understand the copying mechanism to copy scientifically and better grasp the market opportunities.
【Several common mistakes in the copying process】
Cognitive Errors In Copying
1. Lack of risk awareness
High risk and high return is the basic rule of investment, the contract itself has a higher risk, the lead trader only controls the risk and return ratio in a more reasonable range, and exchanges the lower risk for a greater return, but it does not mean that the copier does not have to bear the risk and will not lose. Since traders can not guarantee that they can will all the tiem, there may be losses. In fact, the essence of copying is not to avoid risks and only gain profits. Instead, it is about matching returns and risks to the same level as a good trader.
2.Is there no value in copying a trader with low or medium yield and win rate?
It is a cognitive error that there is no value in copying a trader with low or medium yield and win rate. The following examples of trader A and B will help you further understand.
Trader A: high yield, low and medium win rate
Trader A has a relatively high profit, but his trading win rate is at a medium and low level, indicating that trader A accurately captures the price trend in some of his single trading strategies and obtain a larger profit range. Trader A is more prominent in profit and loss on the whole, and has a larger probability of getting a high win rate in a single transaction.
Trader B: low and medium yield, high win rate
The yield of trader B is at a low and medium level, but the winning rate is high, indicating that trader B has a relatively larger probability of making a profit on each transaction, and the yield is relatively stable. With less risk, trader B is more suitable for users who seek stable returns to follow.
3.Focus on short-term profit and loss, with no long-term vision:
Trading investment is a long-term business. Copy trading provides ordinary users with insufficient trading experience with a shortcut to connect with high-quality traders, but it is still a long-term investment, so the copiers should also have a long-term vision to measure profit and loss. When you have the idea of abandoning copying, you can compare the weekly copying income with the monthly copying income in the historical copying data, and do not take short-term profit and loss as the only criterion for evaluating the trader's ability to lead trading.
4.Looking nervous and fearful when loss is mentioned, lack of patience:
The market is volatile, and traders also need time to adjust their trading strategies to cope with market changes (as shown in the figure: a trader's yield changes over time). Copiers who tend to be panic and fearful need to be patient and wait for traders to adjust their trading strategies. Also, copiers should have a good psychological expectation of stopping loss and taking profit before copying.
【Not understanding the copying mechanism】
1. Is it necessary to make a profit by following a highly profitable order?
Copiers copy the trader at the sight of his highly profitable orders, but fail to get the order's return. The reason is that the trader may have completed the position opening when the copiers see his order. The copiers cannot establish the same position at the moment, who can only wait for the next opportunity to follow the trader to open a position.
2. Have copied but no copying data showing, does it mean that the copy failed?
No copying data does not mean that the copying failed, and the copiers can check it in the following ways.
2.1Check the copy mode: check if you are in the free copy mode. First of all, we need to check whether we have enabled "don't copy until the trader has no position". After we close the option, we can copy as soon as the trader opens a position.
2.2. If the trader has not opened a position, check whether there is a notification in his Posts through his homepage or you can actively give him comments and interact with him to remind the trader to open positions.
2.3 A copier can follow multiple traders to open positions. If the trader does not open positions for a long time, the copier can choose other traders to follow.
2. The right copying habits
1. Take the recommendation list into consideration first
The traders on Gate.io recommendation list on the homepage of copy trading are derived by the system through an objective algorithm, which has a certain reference value, and copiers can select the best to copy.
2. [By analyzing index, make a scientific evaluation of traders' style]
Different traders have different styles of leading and each copier also has different psychological expectations, so the process of selecting traders is particularly important. On the basis of "Sharpe Ratio", "Yield Curve" and other parameters, you can scientifically screen the traders suitable for you, in order to better achieve your own psychological expectations.
Copying Tips in Copy Trading [Sharpe Ratio & Yield Curve]
3.Selection of copying mode
At present, copy trading provides copiers with two copying modes, that is, "full copy mode" and "free copy mode". It is recommended that the copiers use the "full copy mode", which makes the copiers have a nearly consistent ROI with the trader and keep the same pace with the trader in opening the position! About the interpretations of the two copying modes, please refer to: Gate.io Copy Trading User Notice - Copying Mode Is Optimized！
Tips: the crypto market is volatile, traders need to constantly change their trading means. In order to ensure the complete replication of traders' trading operations, it is recommended that copiers' accounts need to reserve enough copying funds.
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