Just because you can copy great traders, doesn’t mean you should. In markets where every wallet is visible on the blockchain such as Polymarket, trading becomes less about predicting outcomes and more about following, hiding, and reacting.
It is worth reiterating that the intention behind this work is only to assist in becoming a better trader and should not be read as a way to make money. By following a Copy trader it is very important to understand why they are making money and not to copy their every trade. Although every successful traders approach may have been noted and potentially imitated, there are individual elements of their methodology that can be followed by the average Copy trader in hopes of making gains. It is a fact that crowded trades have the potential to loose money quickly as the large volume of copies do the exact opposite of the market's movement by hitting the sell button all at the same time.
so the percentage copy works on portfolio level? Meaning if the trader goes in with 0.5% of his portfolio, the copycat goes in with 0.5% of his portfolio as well? (be it 1$ or 100$?)
Great read...
I'm big on the idea that individual pattern recognition from proven profitable accounts helps make better traders
Nice article, I was hoping someone would write a 'most copy traded' list.
On the Iceberging thing though, wouldn't lots of small orders make them easier to copy? I thought the whales tried to execute pretty quickly
In isolation yes, but remember iceberging is done to disguise activity not broadcast it.
Just because you can copy great traders, doesn’t mean you should. In markets where every wallet is visible on the blockchain such as Polymarket, trading becomes less about predicting outcomes and more about following, hiding, and reacting.
It is worth reiterating that the intention behind this work is only to assist in becoming a better trader and should not be read as a way to make money. By following a Copy trader it is very important to understand why they are making money and not to copy their every trade. Although every successful traders approach may have been noted and potentially imitated, there are individual elements of their methodology that can be followed by the average Copy trader in hopes of making gains. It is a fact that crowded trades have the potential to loose money quickly as the large volume of copies do the exact opposite of the market's movement by hitting the sell button all at the same time.
Agree! What do you think of counter trading though?
a weather trader in the top 10 most copied wallets grinding temperature markets in buenos aires is the most beautifully niche thing
Nice writing on copying wallets
so the percentage copy works on portfolio level? Meaning if the trader goes in with 0.5% of his portfolio, the copycat goes in with 0.5% of his portfolio as well? (be it 1$ or 100$?)
Not yet. Position level currently. Working on portfolio level.