by Copy trading on BetPro Exchange has come a long way since first launched in 2018. What started as a simple way for novice traders to copy more experienced traders has evolved into a sophisticated platform with advanced features to help traders execute complex strategies.
The Basics: What is Copy Trading?
For those new to copy trading, the concept is simple. Copy trading allows you to automatically copy positions opened and managed by selected expert traders, called “strategy managers”. So rather than spending time analyzing the markets yourself, you can leverage the knowledge and experience of proven talent.
This allows you to capitalize on trading opportunities you previously struggled to identify or lacked the skills to capitalize on. By investing in strategy managers, you expand your access to advanced trading techniques using platforms like BetPro.
Choosing a Strategy Manager
In the early days of copy trading, choices for strategy managers were limited. Today, hundreds of skilled managers offer a diverse range of specializations.
To pick the right ones for your portfolio, consider factors like:
Risk Profile
What is the manager’s risk tolerance? More aggressive managers may take on higher risk for potential higher returns. Make sure their style aligns with your own risk appetite.
Performance History
Check their track record over different periods. Consistent solid returns across multiple years indicates skill rather than short-term luck.
Maximum Drawdown
How much has the manager’s portfolio value dropped at most? Lower maximum drawdowns indicate they effectively manage risk.
Trading Frequency
Active traders open more positions which can increase costs. Make sure their trading activity matches your preferences.
By analyzing these factors, you can find managers that best meet your copy trading objectives.
Unlocking Advanced Strategies
Once familiar with the basics, traders can explore more advanced copy trading strategies:
Combining Multiple Managers
Rather than relying on a single manager, you can copy trade multiple managers to diversify. This mixes trading styles and markets to reduce overexposure.
For example, you may choose one manager that focuses on short-term Forex trading while another trades longer-term commodities. When combined appropriately, this delivers a more balanced portfolio.
Copying Portions of a Portfolio
Standard copy trading mirrors managers’ portfolios one-to-one. However, BetPro now allows you to copy trade only a portion of a manager’s portfolio.
For example, if a manager holds 10 positions you can choose to copy only their 3 highest conviction positions. This allows more customization in copying only the trades you believe in most while avoiding those outside your risk tolerance.
Utilizing Advanced Risk Management
New risk management tools allow you to exert more control. For example, you can set a maximum number of open positions at any time. Or specify a stop-loss level different than the manager’s.
This allows you to copy a manager’s entries and exits while retaining control over your overall portfolio risk parameters. So their skill identifies opportunities but your risk settings protect your capital.
Automating Trading Strategies
BetPro now allows transforming manual trading strategies into automated algorithms through its rules-based Automator trading tool.
Once you define the logic, these trading bots execute the strategy automatically according to your specifications. This frees you from manual order entry and emotion influencing decisions.
Conclusion: An Ever-Evolving Platform
Copy trading capabilities on BetPro Exchange have come a long way since inception. While newer traders can still benefit from simple copy trading, experienced investors now have access to advanced tools to execute sophisticated strategies.
We expect capabilities to continue advancing over time. BetPro is committed to evolving and leading the development of innovative copy trading features.
As the platform grows, traders can look forward to new ways of optimizing returns while minimizing effort and risk. No matter what your skill level, BetPro offers capabilities to suit your needs today with more enhancements continually on the horizon.
Frequently Asked Questions
What are the main benefits of copy trading?
The main benefits are leveraging the skills of expert traders so you don’t need to identify opportunities yourself, avoiding analysis which takes considerable time and skill, and managing portfolio risk through diversification.
Is copy trading riskier than manual trading?
It can be if you solely rely on a few managers without proper diligence. But with a balanced approach utilizing quality managers plus risk controls, copy trading allows most traders to reduce risk compared to purely self-directed trading.
Can I beat the market simply by copy trading?
Consistently beating the market is extremely difficult, even for professionals. So while quality managers can help you potentially outperform, unrealistic expectations of always earning well above-average returns will likely lead to disappointment.
What are best practices for getting started?
Start slow with small positions copying established, moderately successful managers exhibiting solid gains but low drawdowns. Evaluate results for a few months before increasing allocated capital or adding riskier managers.
How much does copy trading cost?
Beyond regular trading fees on a pay-as-you-trade pricing model, BetPro charges a small monthly subscription fee to access copy trading features based on your portfolio size. Managers also take a performance fee from profits generated.
