#跟单日记 @How to Choose a Lead Trader? — A “Pitfall Avoidance” Guide

Don’t look only at the rate of return! In particular, short-term returns that are exceptionally high often indicate a high-risk strategy.
The following metrics should be evaluated comprehensively:
Return curve: Choose a lead trader with a steadily rising curve and small drawdowns. Curves with sharp rises and falls carry extremely high risks.
Maximum drawdown: This is a more important metric than the rate of return! It measures the worst historical loss in the lead trader’s account. Excessive drawdowns indicate poor risk-control capabilities.
Win rate: The proportion of profitable trades out of the total number of trades. Strategies with a high win rate and an appropriate risk-reward ratio are generally more robust.
Trading period: Observe performance for at least 3-6 months. Lead traders who have experienced multiple bull and bear market cycles or been tested under different market conditions are more reliable.
Holding time: Avoid lead traders who frequently engage in short-term trading (they may be doing so to generate commissions).
Fund management: Examine how they control risk on each trade and whether they tend to take oversized positions.
Number of followers and asset size: Lead traders with more followers and larger total assets under management are relatively more trustworthy, but you should also beware of the “celebrity effect.”
Advice for Copy-Trading Beginners
1 Start with a small amount of capital: Never use money you cannot afford to lose for copy trading. First use a very small amount to experience the entire process and understand the risks.
2 Diversify your copy trading: Do not place all your funds with one lead trader. Choose 3-5 high-quality lead traders with different strategies to diversify your exposure.
3 Set strict take-profit and stop-loss levels: Use the platform’s tools to set global take-profit and stop-loss levels for your copy-trading strategy and protect your principal.
4 Keep learning: Copy trading is not meant to let you “earn passively”; it is a process of learning and participation. Actively analyze the lead trader’s strategy and understand the logic behind it.
5 Think independently: Do not blindly idolize “gurus.” There are no perpetual winners in the market, so maintain a sense of awe toward the market.
The crypto market carries risks, and investment requires caution. This is especially true of copy trading, because you are taking on not only market risk but also the risk of trusting other people. Before investing real money, be sure to do your homework.