Key Points:

• BTCEx allows users to copy trades of successful traders with transparency and ease.
• Traders’ success rates and risk factors are displayed for users to make informed decisions.
• Copying trades has proven to be a successful investment strategy with potentially high returns.
• BTCEx offers an easy-to-use platform for users to participate in copy trading.
• Copy trading with BTCEx offers opportunities for users worldwide to invest in global markets.

Copy trading is a practice in which investors automatically copy the trades of experienced and successful traders. The idea behind copy trading is that novice traders can benefit from the expertise of more experienced traders without having to spend years studying the markets or developing their own trading strategies. In return, successful traders can earn additional income by sharing their trades and insights with others. This article will lead you to BTCEX, where you can find the most transparent copy trading service.

What Is Copy Trading?

Copy trading is a type of investment strategy where novice traders copy the portfolio of experienced traders in order to gain knowledge, experience, and potential profits. It allows users to automatically synchronize their trading operations with the Lead Trader’s portfolio, and they can modify their copy amount, stop loss, and take profit.

BTCEX offers a one-click copy trading service that is user-friendly, convenient, and transparent. The Lead Trader manages the portfolio and receives up to 15% of their Copy Traders’ profit while gaining more exposure in the community.

However, it’s important to note that copy trading does not guarantee profits, as the market can fluctuate. Investors should fully consider the risks before choosing to invest in copy trading.

Key Metrics In Copy Trading

Calculate Realized PNL And Unrealized PNL:

For USDT-Margined perpetual contracts:

• Realized PNL for a position = direction of the order * ( exit price – entry price) * position size
• Unrealized PNL for a position = direction of the order * (mark price – entry price) * position size

*Direction of the order: 1 for long order; -1 for short order

• Portfolio’s Realized PNL = Cumulative Realized PNL for the positions – net funding fees – cumulative trading commission
• Portfolio’s unrealized PNL = Unrealized PNL of all open positions

Portfolio Balance Calculated

Portfolio balance = Wallet balance = Net deposits + Portfolio’s Realized PNL

Portfolio Assets Calculated

Margin balance = Wallet balance + Unrealized PNL

Calculate MDD

The maximum drawdown (MDD) is the maximum observed loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum drawdown is an indicator of downside risk over a specified time period. The higher the MDD, the greater the risk is.

Maximum drawdown is a specific measure of drawdown that looks for the greatest movement from a high point to a low point, before a new peak is achieved. However, it’s important to note that it only measures the size of the largest loss, without taking into consideration the frequency of large losses. Because it measures only the largest drawdown, MDD does not indicate how long it took an investor to recover from the loss, or if the investment even recovered at all.

30D MDD: Portfolio’s maximum drawdown in the past 30 days.

MDD calculation rule: MDD = (M-N)/M *100%

• M refers to the peak value of the IOPV in the period
• N refers to the trough value of the IOPV in the period

ROI And PNL Calculated

Return on Investment (ROI) is a ratio or percentage value that reflects the profitability or efficiency of a trade or investment. ROI can also be used to compare different types of investments or multiple trading operations.

In order to present a more accurate depiction of portfolio performance, the ROI calculation has been adjusted.

Calculating the ROI with its Indicative Optimized Portfolio Value(IOPV) will avoid the ROI distortion caused by deposits and withdrawals.

• ROI =（IOPV at the end of the period – Initial IOPV）*100%

Total PNL = Margin Balance – Initial deposit – cumulative deposits + cumulative withdrawals

*When a portfolio is created, the initial IOPV for the portfolio is 1. If deposit or withdrawals are conducted, the IOPV will be updated immediately

• T: value after deposits/withdrawals
• T-1: value before any deposits/withdrawals

When adding funds:

T(IOPV) = [T(Margin Balance) – Deposit Amount)] / (T-1)(Margin Balance)*(T-1)(IOPV)

When withdrawing funds:

T(IOPV) = [T(Margin Balance) + Withdrawal amount)] / (T-1)(Margin Balance)*(T-1)(IOPV)

If no deposit or withdrawal occurred：

IOPV at the end of a period = Current Margin Balance / Initial Margin Balance*Initial IOPV

BTCEX Copy Trader

Requirement For Becoming A Copy Trader

You need to pass KYC 1 verification and make sure that there is an available balance in your Funding wallet, then, you can copy the portfolio.
*The default minimum copy amount is 100 USDT. Please refer to the min—copy amount requirement of the portfolio you want to copy. 

Profit Shared For Copy Trading

10% of your profit generated from copy trading will be paid to your Lead Trader. The profit share will be settled when you stop copying.

How To Copy A Portfolio

Click “Portfolio Center” under the Copy Trade tab on the homepage of the BTCEX website. 

Choose your  Lead Trader then click “Copy”.

Here pops up the Copy Portfolio page. Enter your copy amount then click the arrow icon to set Take Profit / Stop Loss.

Set TP / SL in the pop-up window.

Roll down to the advanced setting and enable Take-profit / Stop-loss copy if you want. Click “Confirm” after everything’s set.

Don’t forget to read the Copy Trader Service Agreement and tick the box before you confirm.

Now you’ve copied the portfolio, which can be found on the Copied Portfolios page on your dashboard under the Copy Trade tab.

To add to that, profit-sharing may also be paid out on a periodic basis, such as daily, weekly, or monthly, depending on the settings of the Lead Trader.

It’s important to note that the profit-sharing percentage may vary depending on the Lead Trader. Copy Traders should carefully consider the fees and commissions charged before copying a portfolio. Additionally, as with any investment, there is always a risk of loss, and Copy Traders should only invest what they can afford to lose.

How To Become A Lead Trader

Anyone can apply to be a Lead Trader. Simply click “Be a Lead Trader.”

Then fill in the information and confirm. The BTCEX team will review each application on a case-by-case basis.

Application Requirements

1. Pass KYC 1 verification.
2. Please note that if you become a Lead Trader, you cannot be a Copy Trader.

As a Lead Trader, besides earning a percentage of profits from Copy Traders, you can also gain industry-wide recognition for your trading expertise and become a crypto trading influencer. Creating and sharing content on your trading strategy or technique can attract like-minded traders to follow you regularly and engage with them. This can help you grow your following and potentially increase your earnings through profit-sharing.

The requirement to create a portfolio

Lead Traders on BTCEX are required to deposit a minimum of USDT 500, and they are allowed to create a maximum of six portfolios at the same time. This is to ensure that Lead Traders have sufficient capital to manage their portfolios effectively and to prevent the over-extension of their trading activities.

Perpetual contracts that Lead traders can trade to create copy-portfolios are as follows:

• BTCUSDT Perp 
• ETHUSDT Perp
• DOGEUSDT Perp
• KSMUSDT Perp
• APEUSDT Perp
• UNIUSDT Perp
• BNBUSDT Perp 
• SOLUSDT Perp
• MASKUSDT Perp
• MATICUSDT Perp
• XRPUSDT Perp
• ENJUSDT Perp
• RVNUSDT Perp
• CHZUSDT Perp
• ATOMUSDT Perp
• GMTUSDT Perp

Profit-sharing in copy trading is paid out to the Lead Trader under certain conditions. When a Lead Trader exits their portfolio, all copy trades will be closed, and the profit-sharing from each Copy Trader of the copy portfolio will be paid out. Alternatively, when a Copy Trader manually exits the copy portfolio, their profit-sharing will be paid out to the Lead Trader.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Thana

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