#跟单日记 How to choose a copy trader? — “Avoiding Scams” guide

Don’t just look at the return rate! Especially those with extremely high short-term returns, which are often high-risk strategies.

You should evaluate the following indicators comprehensively:

Return curve: Choose copy traders with a smooth upward curve and small drawdowns. A curve with sudden surges and crashes carries extremely high risk.
Maximum drawdown: This is a more important metric than the return rate! It measures the worst loss in the copy trader’s account history. Excessive drawdown indicates weak risk control.
Win rate: The proportion of profitable trades out of the total number of trades. Strategies with a high win rate and an appropriate profit-to-loss ratio are usually more stable.
Trading cycle: Observe performance for at least 3-6 months. Copy traders who have been tested through multiple bull and bear cycles or different market styles are more reliable.
Holding time: Avoid choosing copy traders who do frequent short-term trades (they may be “padding commissions”).
Money management: Check how they control risk in each trade—do they have a habit of making heavy bets?
Number of followers and asset scale: More people and a larger total managed asset scale are relatively more trustworthy, but also be wary of the “star effect.”

Advice for copy-trading newcomers

1 Start with a small amount: Absolutely don’t copy trade with money you can’t afford to lose. Use a very small initial amount to experience the entire process, and feel the risks.
2 Diversify copy trading: Don’t put all your funds into one copy trader. Choose 3-5 high-quality copy traders with different strategies to diversify.
3 Set strict take-profit and stop-loss: Use platform tools to set global take-profit and stop-loss for your copy-trading strategy to protect your principal.
4 Keep learning: Copy trading isn’t about “making money while lying down,” but a process of learning and participation. Actively analyze the copy trader’s strategy and understand the logic behind it.
5 Think independently: Don’t blindly worship “big shots.” There is no ever-winning general in the market—stay respectful toward the market.

Crypto has risks; investment is caution. This sentence is especially applicable in the copy-trading space, because you’re stacking not only market risk, but also the risk of trusting others. Before putting real money in, make sure to do your homework.