Hey everyone!

So a couple months ago I had some money laying around and I decided I wanted to try new things to see if I could earn some extra bucks. As background, I knew I could risk this money since I have a good joob and I didn't need it to survive, and I like crypto (bad combination some would say).

That's when I remembered Binance has this feature where you can copy trade people and share the profits. So I bought some USDT and sent it to my Binance account to get started.

Initial Strategy

I have some experience with trading, but nothing too crazy. And I'm very familiar with the crypto world, I joined in 2019. But despite that, I never tried copy trading in general, let alone using Binance platform, so I wasn't really sure of what strategy to follow.

After some thought, I decided I didn't want to put all the eggs in a single basket, and decided I wanted to "test" the traders before giving them more money. Especially because I was going to use futures instead of spot trading.

I started testing the traders with an initial balance of 50 USDT, and I'd increase it on a monthly basis depending on their results.

I didn't know what to expect, so I chose the traders mainly on PnL/ROI, but that was pretty much it.

First revisions

As you may expect already, choosing traders based on PnL/ROI was kind of a mistake. Some of the traders were super aggressive and used high amounts of leverage (one of them was using x125 lol), meaning that they were getting crazy returns when they won, but also losing pretty much everything when they lost.

After the first month I realized this and started searching for traders that matched a specific criteria, traders must have the following:

• Decent amount of days in the platform (+100 ideally)
• Low amount of previosuly closed wallets (less than 3 ideally)
• Decent returns but not crazy in the last 90 days (10/-50% range)
• Steady PnL/ROI chart upwards
• Low MDD (around 20% max)
• Decent sharpe ratio

As you can see, I became more selective with the traders that I choose (and I will probably continue adjusting this based on the results), and I stopped expecting quick crazy returns.

Results

In total I copied 20 different traders and as a way to share the results, I created a spreadsheet where you can better visualize the results that I got divided by each trader:

https://i.imgur.com/DwyokbQ.jpeg

NOTE: PnL for traders currently open include PnL for open positions, and does not include profit sharing (usually 10%).

As you can see, most of the traders that I started copying during first month are now closed. Main reason is that I didn't like their strategy/risk management and I didn't feel comfortable copying them, or they directly lost everything.

Luckily, second batch of traders I chose using the adjusted strategy seem to be doing good. But it's still early to jump into conclusions since I started copying them less than a month ago. I wait at least a month before deciding to give them more capital as I mentioned before.

Final Numbers

In order to better visualize the results, I created this simple summary:

https://i.imgur.com/MxtGKBq.jpeg

As you can see, despite all the loses, I still managed to earn 129USDT, close to 8% return in 2 months. Mainly thanks to a single trader that I deployed more capital to and did extremely good. ????

Conclusions & How to continue

I think that the adjustment in the strategy was a good choice that will help me to reduce the risks when choosing traders to copy, so I will continue adjusting and improving it as I gather more data.

Also, since I wanted to have multiple options, I tested a ton of traders, but as I continue adjusting the strategy, I will start reducing the amount of new traders that I give an opportunity to so I can focus on giving more capital to the ones that I already have and that are doing good.

The idea is to stabilize the returns by having different traders with different strategies (but always inside a certain range) and start to slowly deploy more capital so I can increase the $$ returns.

Thank you!

Hope you liked this post. I created it mainly to share the results I got and get some feedback from more experienced people.

I know copytrading is usually a very controversial topic but hopefully we can share our knowledge between us!