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NOV 30, 2023

How to Check for Profitable Traders on Bybit and How to Copy their Trades for Profit

by ZIBAH

In 2018, a group of industry experts, with backgrounds in investment banking and the forex industry, came together to establish Bybit. Their goal was to craft a superior customer experience within the trading realm. Bybit, now a leading cryptocurrency exchange platform, is dedicated to delivering a premium trading experience coupled with its recently launched copytrading events.

Introduction

Welcome to Bybit's realm! Bybit isn't your typical platform; what sets it apart is the Copy Trading feature, akin to possessing a magical compass that guides you to follow successful Master Traders and learn from their adventures.
In this guide, we'll embark on this crypto adventure together, learning how to read the stars (market trends), avoid storms (risks), and reach distant shores (financial goals) using Bybit Copy Trading. So, hoist the sails, fellow explorers, as we dive into the world of Bybit and unravel the secrets of crypto seas in the aspect of copy trading ! 
Image source:  Bybit.com 
Image source: Bybit.com 

What is ByBit Copy Trading?

On ByBit, copy trading is a popular strategy that involves a novice trader or follower replicating orders from an experienced trader with a proven positive track record, known as a Master Trader. A Master Trader is an expert who allows others to copy their trades and receives a share of the profits from those copied trades. You have the option to manually copy a Master Trader's strategy or use automated software to replicate their orders.
Bybit provides a convenient platform for effortless and flexible automated crypto copy trading, allowing you to engage with top-tier Master Traders. Bybit allows followers to multicopy up to 10 Master Traders. It's important to note that the parameters set for each Master Trader are unique and not combined. Orders copied from different Master Traders remain separate.
For those eager to delve into copy trading as a follower, your journey starts here. Dive into a comprehensive step-by-step guide on how to kickstart your copy trading experience using Bybit’s Copy Trading platform!

WHAT YOU SHOULD KNOW

  1. Selecting the right trader can pose a challenge: Just as you would thoroughly research before investing in a stock or fund, the same approach applies to choosing traders to replicate. It's not merely about opting for the trader with the highest monthly return; consider factors like maximum drawdown and the trader's overall trading history.
  2. Understand the risk involved: Copy trading carries inherent risks as losses mirror wins. While you can influence certain risk factors, such as the money allocated to your trading account and risk settings, you don't control the trades of the trader you follow. Changing market conditions or a master trader's difficulty in adapting can pose challenges, including emotional responses during trading.
  3. Be mindful of additional costs: Some providers may charge a subscription fee for copying trades, so it's crucial to check beforehand.
  4. Market risks: Copy trading doesn't shield you from typical market risks like slippage, rejected orders, or platform outages. It's essential to be aware of these factors as part of your overall risk management strategy.

Choosing Your Trading Partner: Tips for Copy Traders on Bybit

Image source:  Bybit.com
Image source: Bybit.com
  1. Profit and Loss: Scrutinize a trader's track record—steady wins or thrilling journeys? Glance at the 7-day profit and loss (P/L) ratio for recent insights.
  2. Followers & Community: Reputation speaks volumes. More followers often translate to a longer success story and higher cumulative profit.
  3. Trading Volume: Feel the pulse of a trader's strategy. High trading volumes signify an active approach.
  4. Trading History: Dive into a trader's past to understand their style. You want a trading partner whose moves align with your risk appetite.

Step by Step guide on how to Get Started With Copy Trading on Bybit

Image source:  Bybit.com
Image source: Bybit.com
Step 1: Sign up for a Bybit account and fund it using proper risk management.
Step 2: Go to Tools, then Copy Trading, and explore top traders based on the last seven days' ROI.
Image source: Bybit.com
Image source: Bybit.com
Image source:  Bybit.com
Image source: Bybit.com
Step 3: Choose a Trader, click Copy, and enter the Copy Trading settings.
Step 4: Input your investment amount, choose the account, and let the transfer happen. For first-timers, click My CopyTrading (Master Trader) –> Transfer to make a deposit (only USDT supported).
Image source:  Bybit.com
Image source: Bybit.com
Step 5: Optionally set a Copy Stop Loss (CSL) and use Bybit CopyGuard for optimal position timing.

Profit Sharing Explained

As a follower, your journey involves both sharing and earning profits. The profit-sharing ratio varies by rank: Cadet 10%, Bronze 10%, Silver 12%, and Gold 15%. 
Image source:  Bybit.com
Image source: Bybit.com

Profit Sharing Rules

The system calculates net P&L daily, deducting upfront ratios. Settlement occurs every Monday at 3:00 AM UTC.
Settlement Time 
Settlement time: 3:00AM UTC on Mondays
Profit calculation period: 12:00AM (midnight) UTC on Saturday to 11:59:59PM UTC on Friday
How to View Your Profit Shared 
For Followers: Please head to Asset History to view more details of profit sharing under Profit Sharing History.
Image source:  Bybit.com
Image source: Bybit.com
Disclaimer: Keep a watchful eye on your Copy Trading account, as Bybit nor this author is liable for losses due to any malfunction in the alert feature. Copychain wishes you smooth sailing and prosperous copy-trading ventures!
This content was all about "how to check for profitable traders on ByBit and how to copy their trades for profit."  We might be taking a swing into Decentralized Onchain Analysis and Decentralized copy trading with a huge focus on Ethereum. Do well to check out the next post, cheers!
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