Comparison of futures copy modes and explanation of parameters
Bitget
2023-12-14 06:42
1. Diverse follow vs. smart copy
1.1 Diverse follow
Diverse follow is Bitget's classic copy mode.
Pros:
a. Diversify investment opportunities and mitigate potential risks by allowing followers to follow multiple elite traders with different trading styles.
b. Capture market opportunities and avoid missing any potential breakthrough trading opportunities.
c. Maximize funds with just one fund pool for even 100 elite traders.
Cons:
a. Risk of overexposure. Using the same assets to follow multiple elite traders may result in overleveraging and increased risk.
b. Losses can be significant when several elite traders make wrong decisions at the same time.
1.2 Smart copy
Smart copy is a new copy trading mode that automates copy trading cost calculation based on a certain proportion of elite traders' funds.
Pros:
a. Make worry-free investments and copy trades without configuring complex parameters.
b. Precise copy trading. If an elite trader invests 10% of their funds in a trade, followers will also invest 10%. Followers don't need to waste any time configuring copy trading parameters.
c. Followers can determine elite traders' confidence in specific trades through the percentage. For instance, if an elite trader invests only 1% into one trade, then the elite trader might have low confidence in making profits through that trade. In such cases, followers will also invest 1% in the copy trade to mitigate risk. This mode scales with the percentage. For instance, if an elite trader invests 50% of their funds, they must be very confident in the trade, so the follower will copy for the same amount.
d. Under smart copy mode, changes in the investment amount will only affect the settings for a single elite trader. Followers can decide the amount for every elite trader themselves.
Cons:
a. Diversification is limited. You may miss some opportunities if you strictly make copy trades at a fixed proportion to elite traders' funds.
b. If an elite trader that you have allocated a smaller investment amount to makes profits, your profits would be proportionally lower.
2. Diverse follow parameters
1. Investment amount: Followers will use a fund pool for all elite traders that they follow, meaning the investment amount represents the total copy trading amount for all elite traders. The minimum amount is 50 USDT and can be supplemented from the follower's futures account.
2. Fixed amount: The amount invested into each copy trade. For instance, if a follower sets a fixed amount of 50 USDT for an elite trader, the system will invest 50 USDT as margin when the follower makes a copy trade for that elite trader.
3. Multiplier: The proportional relationship of the follower's investment amount and the elite trader's investment amount. For instance, if you set a multiplier of 5, then when an elite trader invests 0.1 BTC in an elite trade, you will invest 0.5 BTC in the corresponding copy trade.
4. Auto copy: The system will help you automatically copy the elite trader’s new trading pairs after you enable this feature.
5. Copy trading pair: You can decide which trading pairs you want to follow the elite trader here. You will make copy trades only when elite traders make elite trades for the trading pairs you have chosen.
6. Stop-loss ratio: Used to mitigate your copy trading risk. The ratio you set will apply to all orders under the elite trader you follow. For instance, if you set a 10% stop-loss ratio, the system will automatically close the order at the market price when the stop-loss ratio is exceeded. If the elite trader you follow closes the order before your stop-loss ratio is triggered, you will follow the elite trader in closing the order instead of waiting to trigger the stop-loss ratio.
7. Take-profit ratio: Functions the same as the stop-loss ratio. The system will automatically close the order if the profit of your copy trade exceeds the ratio. The ratio you set will apply to all orders under the elite trader you follow. For instance, if you set a 10% take-profit ratio, the system will automatically close the order at the market price when the take-profit ratio is exceeded. If the elite trader you follow closes the order before your take-profit ratio is triggered, you will follow the elite trader in closing the order instead of waiting to trigger the take-profit ratio.
8. Maximum copy: The maximum margin you are willing to use in each trading pair. Once the amount reaches this limit, you will no longer copy any further trades. When the current orders are closed and the margin used is lower than this value, you will once again copy trades.
9. Slippage limit: When the price change of the order exceeds the slippage limit, the system will not make the copy trade. For instance, assume that the slippage limit you set is 1%. The system will not make a copy trade where the price change exceeds 1% of the elite trader's filled price. We currently support the configuration of slippage limits for the ADAUSDT, FTMUSDT, EOSUSDT, SFPUSDT, ARBUSDT, NEARUSDT, ETCUSDT, MATICUSDT, DOGEUSDT, LUNA2USDT, TRBUSDT, SOLUSDT, BCHUSDT, BTCUSDT, and ETHUSDT trading pairs. Bitget will upgrade this feature to support more trading pairs in the future.
10. Recommended parameters: Click Apply Parameters to automatically fill in the parameters preset by the elite trader. Note that Bitget does not endorse the parameters recommended by elite traders and should not be taken as investment advice from Bitget.
11. Margin mode and leverage adjustment: After the upgrade, the system will use cross margin mode and 10X leverage by default for diverse follow. At the end of 2023, users will be able to manually adjust their margin mode and leverage.
3. Smart copy parameters
1. Investment amount: The amount used to copy the elite trader. The minimum amount is 50 USDT and can be supplemented from the follower's futures account.
2. Auto copy: The system will help you automatically copy the elite trader’s new trading pairs after you enable this feature.
3. Copy trading pair: You can decide which trading pairs you want to follow the elite trader here. You will make copy trades only when elite traders make elite trades for the trading pairs you have chosen.
4. Stop-loss ratio: Used to mitigate your copy trading risk. The system will automatically close the order if the loss of your copy trade exceeds this ratio. The ratio you set will apply to all orders under the elite trader you follow. For instance, if you set a 10% stop-loss ratio, the system will automatically close the order at the market price when the stop-loss ratio is exceeded. If the elite trader you follow closes the order before your stop-loss ratio is triggered, you will follow the elite trader in closing the order instead of waiting to trigger the stop-loss ratio.
5. Take-profit ratio: Functions the same as the stop-loss ratio. The system will automatically close the order if the profit of your copy trade exceeds the ratio. The ratio you set will apply to all orders under the elite trader you follow. For instance, if you set a 10% take-profit ratio, the system will automatically close the order at the market price when the take-profit ratio is exceeded. If the elite trader you follow closes the order before your take-profit ratio is triggered, you will follow the elite trader in closing the order instead of waiting to trigger the take-profit ratio.
6. Maximum copy: The maximum margin you are willing to use in each trading pair. Once the amount reaches this limit, you will no longer copy any further trades. When the current orders are closed and the margin used is lower than this value, you will once again copy trades.
7. Slippage limit: When the price change of the order exceeds the slippage limit, the system will not make the copy trade. For instance, assume that the slippage limit you set is 1%. The system will not make a copy trade where the price change exceeds 1% of the elite trader's filled price.
8. Margin mode and leverage adjustment: After the upgrade, the system will follow elite traders' settings by default for smart copy.
a. If an elite trader uses cross/isolated margin mode, then you will also use that mode for your positions. In isolated margin mode, if the elite trader enables automatic margin call, you will also enable this feature.
b. If an elite trader uses 10X leverage, then you will also copy trades at 10X leverage.
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