As I’ve mentioned several times, I’ve been testing some new copy traders (or lead traders, if you want to use the proper term, but no one does).
Copy Trading has generated the best profits for me since I started this new approach: up about 45% compared to the other two categories dropping about 10% each (while we’re in this dip).
But since I lost $4,000 on copy trading (and got it back), I figured I needed a proper approach to testing potential new additions. I don’t really need more traders to follow, as I still have that excellent one who’s been earning consistently for months, but I don’t like putting all my eggs in one basket. If I can find one or two more who manage 10% or more per month, I can split funds, reducing risk and covering my arse for if/when one or more of them disappears!
So I built this little two-part plan in my head.
Step 1
I’ve already covered finding traders to follow, so I won’t repeat that here. It’s the link in the first bullet.
- Find traders who fit the profile
- Put the minimum $50 into copying them
- Set it on Smart Ratio (no other adjustments except to follow their margins)
- Leave it for 4 weeks
I still think 4 weeks is enough to catch the bad traders, though I’m extra-twitchy after those big losses. That’s where the second part of the plan comes in.
Step 2
I keep weekly stats for the new traders, of course, so I can see if they yoyo up and down or work steadily in one direction. Not that this really makes much difference – it’s the final result I’m interested in – but if they consistently lose, then suddenly get a big win that saves them? Well… I trust it less.
At the end of the 4-week period:
- Remove any who bankrupted (duh)
- Remove any with negative PNL
- Remove any with less than 5% profit
- Withdraw profit from remaining traders (reset them to $50)
- See if released funds can add new test traders
- Continue 4 more weeks for those over 5% profit
Two whole months of testing?
Is that enough, too much, too little?
It feels right. The really bad traders usually die an excruciating death in the first month, and the extra month makes sure it wasn’t just luck. There’s no guarantees in this circus, of course.
This Month’s Results
The last 4-week test period ended on Sunday, so I went through and updated everything.
1 bankrupted, 1 almost bankrupted (weird result, as I explained on Sunday), 3 didn’t make the cut, 3 stay in testing, 3 new traders added.
Let’s start with the drops:
- Romb bankrupted, dropped
- Scalp daily as routine almost bankrupted (and finished 3.25% in positive), dropped
- CryptoCat finished 1.14% in positive. dropped
- The money baker finished 1.54% in positive, dropped
- Burgas63 finished 3.14% in positive, dropped
Scalp and the Baker were a shame, they looked good. I was tempted to “go with my gut” on those, but then remembered that my gut is stupid and talks crap. Especially when confronted with lead trade figures like these (those are the trader’s losses, not mine!):
Then we have the survivors and new additions:
- No Risks (despite my avoidance of that kind of name) up 39.28%
- rzhadko up 14.20%
- Ratnik up 5.00%
- 30*****6 added
- ComfyFrog added
- TP Trading added
You’ll notice that pretty much EVERY choice has “High Stress Tolerance” on their tag list, whether they’re conservative traders or not. Those are the ones who know how to survive a sudden movement in the wrong direction!
You’ll also notice that there are 5 drops and only 3 adds. I’m going to move the other ~$100 into SOL staking (Banking) to build that up a bit, ready for the (hopeful) price hike this year.
Are you following any good traders on MEXC? I’d love to add them to my list…!!
