How to find the best traders to copy on Bybit?

Finding Reliable Traders on Bybit's Copy Trading Platform

1. Begin by accessing the Bybit copy trading section, where a list of active traders is available for review. Each trader profile includes performance statistics such as total return, win rate, and number of followers. These metrics provide an initial sense of consistency and reliability.

2. Focus on traders who have maintained steady profits over several months rather than those with sudden spikes in returns. A consistent track record reduces the risk of copying someone relying on luck or high-leverage gambles. Look for individuals whose strategies align with your risk tolerance.

3. Check the maximum drawdown percentage listed on each profile. A lower drawdown indicates better risk management, which is crucial when replicating trades automatically. High returns mean little if they come with extreme volatility that could wipe out capital.

4. Review the average trade duration and frequency. Some traders execute dozens of short-term positions daily, while others hold positions for weeks. Your choice should reflect your preferred level of market exposure and time horizon.

5. Pay attention to follower count and copied volume. While popularity doesn’t guarantee success, a growing number of followers often signals trust within the community. Sudden surges may require deeper investigation into whether they stem from organic growth or promotional activity.

Analyzing Performance Metrics Beyond Returns

1. Examine the Sharpe ratio if available, as it measures risk-adjusted returns. A higher value suggests the trader generates profit without taking excessive risks. This metric helps differentiate between skillful execution and reckless speculation.

2. Look at the distribution of winning versus losing trades. A trader with a 60% win rate but large losses on the remaining 40% can still be unprofitable. Consistency in small gains and controlled losses often beats aggressive all-or-nothing approaches.

3. Analyze how the trader performs during volatile market conditions. Use historical data to see their behavior during major price swings, such as Bitcoin halvings or macroeconomic shocks. Resilience under pressure is a strong indicator of long-term viability.

4. Consider the types of assets traded. Some focus exclusively on major cryptocurrencies like BTC and ETH, while others engage in altcoin speculation. Align your selection with your own comfort level regarding asset stability and liquidity.

5. Be cautious of inflated returns caused by compounding effects from early small investments. A 10,000% return starting from $100 means far less in real value than the same percentage from a larger base. Always assess absolute gains alongside percentages.

Avoiding Common Pitfalls in Copy Trading

1. Do not blindly follow traders with the highest ROI. Many top performers use extreme leverage that can lead to liquidation during downturns. High leverage might inflate short-term results but increases the likelihood of total loss.

2. Watch for signs of irregular activity, such as sudden strategy shifts or inconsistent trading patterns. These could indicate attempts to manipulate perception or recover losses through risky moves.

3. Avoid concentrating your funds on a single trader. Diversify across multiple profiles with different strategies to spread risk. Even skilled traders experience losing streaks, and diversification cushions potential damage.

4. Be skeptical of traders who promote themselves outside Bybit without verifiable track records. Social media hype does not equate to proven performance. Stick to platform-verified data instead of external claims.

5. Regularly monitor the traders you copy. Market dynamics change, and a previously successful strategy may become obsolete. Adjust your portfolio of copied traders based on ongoing performance, not just initial impressions.

Frequently Asked Questions

How much should I allocate to each trader I copy?Start with a small allocation, typically between 5% to 10% of your total trading capital per trader. This allows room for error and minimizes impact if a trader experiences unexpected losses.

Can I stop copying a trader at any time?Yes, Bybit allows users to pause or remove copied traders instantly. You retain full control over your funds and can adjust your settings whenever necessary without delay.

Do copied traders earn a fee from my profits?No, Bybit does not charge performance fees to traders you copy. The platform earns revenue through standard trading fees, not profit sharing. Your returns remain fully yours after deducting applicable transaction costs.

What happens if a trader I'm copying gets liquidated?If a trader’s position is liquidated, your linked position will also close at the same point. This ensures alignment but underscores the importance of choosing traders with sound risk management practices.