1. What is copy trading and why should we use copy trading?
As a global cryptocurrency exchange, copy trading allows ordinary users to obtain the same trading tools as their recognized trading experts through copy trading. At the same time, it helps trading experts connect with experienced peers and learn the secrets of their success. Any BIT user can select a trading expert as a follower to follow orders and automatically copy all orders of the trading expert. BIT copy trading provides a transparent and reliable trading environment, allowing both professional traders and beginners to help each other and jointly create more income.
However, unlike buying funds, copying users may fail to follow orders due to their own account reasons and technical reasons. In extreme cases, the execution prices of the same copywriter may be different, and the implementation of the copywriter's strategy may be different. The order guide may also be different. Therefore, copy trading is not a strict "copying" strategy in nature.
What is the difference between a trading expert who leads orders and a user who follows orders?
Trading experts with orders refer to professional trading experts who manage investment portfolios, and other users can copy their investment portfolios. The copy trading user refers to the user who copies the investment portfolio of the trading expert.
What are the advantages of copy trading?
Help novice traders understand the cryptocurrency market and increase their trading confidence.
Novice traders can learn how to trade by observing the trading behavior of others, especially experienced traders.
You can participate in cryptocurrency market trading even if you don’t have enough time for investment analysis.
Provides a communication platform for trading experts. Professional traders and novice traders can exchange ideas and investment strategies to improve their respective trading situations.
How to make profits from copy trading?
Copy trading provides investors with profits by automatically following orders. New traders can increase their chances of profit by following the trades of professionals.
What risks are involved in copy trading?
- Copying users may fail due to their own account reasons and technical reasons. In extreme cases, the execution price of a follower with the same leader may be different, and the implementation of the follower's strategy may also be different from that of the leader. Therefore, copy trading is not a strict "copying" strategy in nature.
-Any investment product involves risks. The biggest risk in copy trading is the risk of portfolio selection. If the trading expert's strategy fails, the copy trading users who follow him may also suffer losses. During the copy trading process, copy trading users will also face the risk of slippage, especially when the transaction is affected by market fluctuations, resulting in insufficient liquidity. In addition, if the trading market rises or falls sharply, copy trading users may also encounter systemic risks. Please decide your investment amount based on your personal circumstances and risk tolerance.
2. How to place orders on the BIT copy trading platform
If you are an experienced trader and are looking for a new source of passive income, apply to become a contract trading expert on the BIT copy trading page now! At BIT, you can demonstrate your abilities and skills and benefit from the profits of those who follow the orders. Please follow the steps below to become a trading expert so that other users can follow your orders.
How to become a Lead Trader on the BIT copy trading platform?
1. Log in to your personal BIT account and access [Perpetual Contract] - [Copy Trading].
2. Click [Become a Lead Trader]
3. Create your order project
avatar: Upload the avatar that will be displayed in the trading expert square;
Name: Enter the name that will be displayed in the trading expert square;
Project description: Enter the project description that will be displayed in the project details page ;
Read and agree to the service agreement, then click [Confirm] to create the project.
4. You can create multiple sub-accounts to carry out orders with different strategies
5. Your order item has been created successfully.
Click [Transfer] to deposit or withdraw funds. Please note that the maximum amount that can be transferred is the project's available balance minus 1,000.
Click [Close Order] to end the order, and then the follower will automatically stop following the order and settle the profits. Please note that the order cannot be ended while the project still has a position.
6. After entering the project, you can view the details and performance of the order project
Click [Go to Order] to enter the order trading interface.
Please note:
The order trading tool and the contract trading interface are basically the same. For details, please refer to how to customize the BIT contract trading interface.
Trading with orders does not currently support trailing stop orders.
Currently, order trading only supports U-based contracts.
3. How to follow orders on the BIT copy trading platform
1. Log in to your BIT account and click [Contract] - [Copy Trading].
2. You can filter by indicators such as master list/recommended list/surge list and withdrawal. Click [Follow Order].
3. Set the following parameters
Follow-up settings
| Follow-up settings | definition |
| Copying principal |
Trading experts should transfer at least 100 USDT for their first deposit. Please note that if your account assets are less than 50 USDT, the copying user will no longer follow you to open new positions. |
| Assets at stop loss |
Set your stop loss asset limit. When your assets fall below this limit, you will automatically stop following the trader. If you have remaining positions when canceling the copy order, you can set the following operations: Immediately close the market price Continue to follow the trader until the position is closed |
| Documentation margin settings |
Follow the trading expert: Follow the trading expert's margin usage ratio. Fixed margin: Each transaction uses a fixed margin to place an order. If the margin setting is too low, submit the order with the minimum margin required for the order. Fixed margin ratio: Each transaction uses a fixed percentage of the remaining available account balance to place an order. |
| Leverage settings |
Follow the Master: Follow the leverage used by the Master. Fixed leverage: All trades will maintain the fixed leverage multiple set, regardless of the leverage multiple used by the trader. Custom leverage: Set independent leverage multiples for each trading pair. |
| Acceptable slippage ratio for each order | According to the set slippage ratio, the maximum cannot exceed 5%. Each copying order shall not exceed the maximum slippage price set by the trading expert. If it exceeds the maximum slippage price, the copying order will fail to open. |
| If the trading expert has a current position |
Follow the position increase: The trading expert already holds the position of the trading pair before you follow the order. If the trading expert continues to increase the position, you will follow the transaction. Only follow from a new position: If the trading expert already holds 2 long positions on the trading pair before you follow the order, you will not follow the position increase until the position is closed. |
| Select contract | By default, you follow the trading expert, and you can choose the U-based perpetual contract trading pair you only want to follow. |
4. After setting the above parameters and agreeing to the service agreement, click [Follow Order]. The copying amount will be transferred from the main account to the copying sub-account.
Please note:
During the copying period, the trading expert may increase the margin. This situation will cause the risk of your position to be higher than that of the trading expert. Please pay attention to your copying projects and position status at any time.
When a trading expert holds a large number of positions or frequently adds positions, if you are using the [Fixed Margin] mode, your project may have insufficient margin balance and fail to follow orders. Please keep an eye on your project at any time. Timely adjust the copying amount or the margin amount of each order to reduce copying failure.
How to manage copy trading?
1. Click [Documentation Center] to manage projects.
2. You can view the current copying and completed copying.
Current copying
[Transfer In/Transfer Out]: You can add or transfer the copying amount.
[Following Order Settings]: Adjust the margin amount for each order.
Modify more settings
[Exit copying]: If there is currently a position, the system will immediately use the market price to close the position. After closing the position, the profit sharing amount is settled and the remaining assets are transferred back to the main account.
4. Copy trading rules
When the copying user successfully follows the order, the system will automatically copy the perpetual contract transaction executed by the trading expert.
1. Rules for opening and closing positions
Open a position:
| Trading expert order type | Follow-up trigger method | Follower user order type |
| Taker order (market order/conditional order-market price) | trigger immediately |
market order Price limit: The maximum slippage of the trading expert’s entry price |
| Pending order (limit order/conditional order-limit price/Maker only) | Triggered after the order is completed |
market order Price limit: The maximum slippage of the trading expert’s entry price |
Close position:
| Trading expert order type | Follow-up trigger method | Follower user order type |
| Taker order (market order/conditional order-market price) | trigger immediately | market order |
| Pending order (limit order/conditional order-limit price/Maker only) | Triggered after the order is fully filled | market order |
How to calculate the opening and closing quantities?
【Follow the Trading Master】Mode
·Opening a position: The cost of opening a position by a copy user is directly proportional to the cost of opening a position by a trading expert. However, it should be noted that the system cannot guarantee that the opening price of the copy user is exactly the same as the opening price of the trading expert. Slippage may affect the actual number of positions opened by the copying user, causing the final amount to be less than the proportional amount of the order.
Assume that the trading expert's available margin balance is 1,000 USDT, and uses 500 USDT to open a position (that is, 50% of the available balance is occupied). If the copying user's copy amount is 500 USDT, the system will use 250 USDT to follow. Single user opening a position. However, please note that due to slippage, the actual number of successfully opened positions may be less than 250 USDT.
·Close the position: Suppose the trading expert holds a position of 1 BTCUSDT and then closes 20% of the position (i.e. 0.2 BTC). If the total copying amount of a copying user is 0.6 BTC, the system will automatically liquidate 20% of the copying user's position (i.e. 0.12 BTC).
【Fixed Margin】Mode
·Opening a position: The system will open a position according to the copying margin set by the copying user for each order.
Assume that the copying user's margin for each order is 20 USDT, and the total copying principal is 60 USDT. Each time a follow-up order is triggered, the system will open a follow-up position at a cost of 20 USDT. After completing 3 copy orders, the copy principal balance will become 0 (lower than the copy margin for each order). At this time, due to insufficient principal balance, the copying user can no longer copy the trading expert.
·Close the position: Suppose the trading expert holds a position of 1 BTCUSDT and then closes 20% of the position (i.e. 0.2 BTC). If the total copying amount of a copying user is 0.6 BTC, the system will automatically liquidate 20% of the copying user's position (i.e. 0.12 BTC).
Please note:
·If the opening amount is lower than the minimum transaction amount or the minimum order nominal value, the system will open a position for the copying user based on the minimum transaction amount. For details, please see the Trading Rules.
·If the opening amount exceeds the maximum limit corresponding to the selected leverage, the system will open a position for the copying user according to the maximum limit. For details, see Leverage and Margin for U-margined Contracts.
Why does following order fail?
The available margin balance of the copying project is insufficient;
the trading expert uses a limit order/conditional order-limit price/maker-only order to open a position, but the order has not been fully completed; the
order volume of the copying user's order is less than the minimum order for the currency pair volume;
the market price deviates from the entry price of the order leader by more than 0.5% (or the slippage value set by the user who follows the order); the
market price order fails to open and the transaction is still not completed after retrying.
Please note:
·The weekly profit settlement cycle is from Monday 00:00:00 (UTC) to Sunday 23:59:59 (UTC).
·Weekly profit sharing will only be settled when there is no position in the copying project. Handling fee rebates are not affected by position holdings.
·After settlement is completed, the profits will be automatically distributed to the trading expert's main account every Monday.
·Trading experts can get 10% commission on unfinished copying projects every Monday.
·There is a cap on the weekly 10% commission rebate. The system will take a snapshot of the margin balance of the copying project every Monday at 00:00 (UTC), and the upper limit of the rebate is Min [total copying and transaction fees * 10%, margin balance of the copying project * 3% * 10%] · In
addition , the system will also distribute profits to the trading expert under the following circumstances:
·The copying user stops following the order;
·The trading expert ends the order;
·The copying user withdraws the profit from the copying project.
How to calculate the amount of profit to be distributed?
·Amount of profit to be distributed = Max[Realized profit of the follow-up project * Profit distribution ratio - Amount of profit distributed, 0]
·How to calculate the profit sharing amount of the documentary project?
·The amount of profit sharing is based on the profit and loss statistics of the entire copying project. The system will calculate the total profit of all copying projects.
·Assume that the copying amount of a copying project is 1,000 USDT, and multiple copying transactions are carried out every week, and the profit sharing ratio is 10%.
| time | Changes in profit and loss | Total profit and loss | Total profit amount | Total profit amount | Amount to be distributed |
| the first week | |||||
| the second week |
·Change in profit and loss refers to the net profit realized for the week.
·Total profit and loss refers to the total profit currently realized by the copying project.
·Realized profits are after deducting all related expenses.
·The profit distribution amount refers to the profit distribution amount that has been settled.
6. Performance indicators of BIT copy trading
You can learn more about the project's performance indicators on the tracking project details page.
| index | describe |
| rate of return (ROI) | Yield is a ratio or percentage value that reflects the profitability or efficiency of a project. |
| Profit and loss | Realized profit and loss + unrealized profit and loss |
| maximum drawdown | Within a certain period, the return retracement of the net asset value from the highest peak to the lowest trough on the asset curve. |
| winning rate |
Profit closing quantity/total closing quantity*100% Note: When the order is completed and the position is fully balanced, it is counted as a closed position. If the order is only partially closed, it will not be counted in the closing quantity. |
| Profit closing quantity and total position quantity | The number of profitable closed positions and the total number of positions |
| Assets under management (AUM) | The amount of the order item + the total amount of the order |
| Principal balance of the order | Wallet balance + unrealized profit and loss |
| operation hours | Project creation time |
Please note that Yield and P&L are updated every 10 minutes.
How to calculate rate of return and profit and loss?
Return on investment (ROI) is a ratio or percentage value that reflects the profitability or efficiency of a project. It refers to the calculation method of fund return rate (net asset value), which can avoid the distortion of return rate caused by changes in principal caused by deposits and withdrawals.
Yield = (Current Net Asset Value - Initial Net Asset Value) * 100%
Project Cumulative Profit and Loss = Current Assets - Initial Assets - Cumulative Recharge Amount + Cumulative Withdrawal Amount
When the project is created, the initial net asset value is 1. After depositing or withdrawing money, the system will immediately update the net asset value. In the following formula, "T" represents the time after recharge or withdrawal, and "T-1" represents the time before recharge or withdrawal.
After recharge:
T point net asset value = (T point asset - recharge amount) / (T - 1) point asset * (T - 1) point net asset value After withdrawal:
T
point net asset value = (T point asset + withdrawal amount) / (T-1) Point Assets*(T-1) Points Net Asset Value
No recharge or withdrawal has occurred:
Current net asset value = current assets/initial assets*initial net asset value
| Day 1 | Day 2 | 3rd day | Day 4 | |
| Total assets | 500 | 400 | 1400 | 1550 |
| Project profit | 0 | -100 | +150 | |
| top up | - | - | 1000 | - |
| withdraw | - | |||
| net asset value | 1 | |||
| rate of return | 0% |
Note: There are certain limitations in the rate of return. For example, when comparing two different trades, the yield calculation formula does not take into account the cost of time.
How to calculate Maximum Drawdown (MDD)?
The maximum drawdown (MDD) refers to the retracement range of the net asset value from the highest peak to the lowest trough within a certain period. The higher the maximum drawdown, the greater the risk.
Note: Maximum drawdown can only measure the maximum degree of loss experienced by the project, but it cannot measure the frequency of large losses experienced by the project. It cannot judge how long it will take for the project to recover from losses, nor can it indicate whether the project has currently recovered.
Maximum retracement = (M-N) / M * 100%
"M" represents the peak net asset value during the period.
"N" represents the NAV trough that occurs after the peak within the cycle.
How to calculate winning rate?
Profit closing quantity/total closing quantity*100%
Please note:
when the order is completed and the positions are all flat, it is counted as a closed position.
If the order is only partially closed, it will not be counted in the closing quantity.
7.Trader benefits for BIT copy trading
On the BIT contract platform, trading experts who follow orders can enjoy the following benefits:
· 10% of the profit share of the copying users; and
· 10% commission on the handling fees of the copying users.
·VIP9 handling fee discount (order placing -0.0001%/taking order 0.0300%)
·Recommended position in the order square
·BIT community exposure opportunities
·Account manager provides VIP 1-on-1 service for order taking members
·BIT customer service team is available 24/7 Group Q&A service
·Holiday gifts, BIT peripherals
8. More FAQs
1. What is BIT contract copy trading?
BIT contract copy trading is an automated trading system. You can become a trading expert and let other traders follow your projects; you can also become a follower and follow the trading experts' projects.
After specifying the copy amount, the system will automatically follow the trader you follow.
2. Does the system support taking orders and following orders at the same time?
Not supported.
3.Do copy trading and BIT contract trading share the same account?
No, the documentary account is independent of the BIT contract account, and the two do not affect each other.
4. How many contract trading pairs does copy trading support?
Currently, copy trading supports more than 100 U-standard contract trading pairs, and the trading pairs will be adjusted from time to time according to market conditions.
5. What is the difference between order trading and ordinary contract trading?
In order to provide a smooth trading experience for trading experts, the trading process, interface and tools of order trading are basically the same as ordinary contract trading.
6. What benefits can trading experts enjoy?
The trading expert can get 10% of the follower's income as a profit sharing reward, and the follower can get the remaining 90% of the income.
7. Can trading experts use API to place orders?
Currently, API order transactions are not supported.
8. How many copying projects can a follower have at the same time?
There is no limit to the number of projects that a follower can follow.
9. What are the "Following Expert Ratio" and "Fixed Margin" modes?
In the "Follow Trading Expert Ratio" mode, each order copying user follows the same margin usage ratio as the trading expert. In the "fixed margin" mode, each order is followed with a fixed amount set by the follower.
10. How does the copy slippage protection mechanism work?
Copy trading is conducted in real time. In order to prevent the follower's opening price from significantly deviating from the trader's opening price, the slippage protection mechanism sets a maximum upper limit for price slippage. Currently, the default slippage protection value is 0.5%. Users who follow orders can set the slippage protection value by themselves.
11. Why does following an order fail?
The following are common reasons for failed copying:
the available margin balance of the copying project is insufficient;
the trading expert uses a limit order/conditional order-limit price/make-only order to open a position, but the order has not been fully completed; the
copying user order is placed The order amount is less than the minimum order amount for the currency pair;
the market price deviates from the entry price of the orderer by more than 0.5% (or the slippage value set by the user who follows the order); the
market order fails to open and the transaction is still not completed after retrying.
12. Can copy trading guarantee profits?
Copy trading cannot guarantee returns and is accompanied by higher risks. Please control risks reasonably and invest prudently based on your own financial situation.
13.Why do some projects display a “High Risk” label next to them?
If the highest leverage ratio of the led order project in the past 7 days reaches or exceeds 10 times, the system will display a "high risk" label.
14. Can I use a BIT sub-account to follow or lead orders?
Trading experts have separate strategy sub-accounts for leading orders, so the sub-account does not support placing orders and following orders.
15. Can copy trading enjoy the rebate from the BIT rebate plan?
Yes, the inviter can get rebates on the transaction fees for bringing orders/following orders.
BIT Team
Nov 17, 2023
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