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Trading

How to pick traders to copy, and how to manage the risk

· 6 min read · DYOR team

There's no way to know who will trade well next week. What you can do is avoid the obvious mistakes when choosing, and set your limits so that a bad choice costs a small, known amount.

Choosing: six questions to ask

1. What did their copiers make?

Start with median copier P&L, not the trader's own profit. It tells you how the typical person copying them did after fees. A trader with big personal gains and negative copier results is a trader whose followers lost money.

2. Is there enough history?

A handful of trades or copiers tells you very little. A short winning streak is common by chance. Traders without enough copier history are listed at the bottom of the leaderboard for this reason.

3. Are they flagged for selling into followers?

If we detect a trader selling into their copiers' buying within the last 30 days, it says so on their profile. It isn't proof of bad intent, but it's a reason for caution. See dumping on followers.

4. How often do they trade?

Every copied trade pays a fee. A trader making dozens of trades a day can turn a small “each trade” amount into a lot of volume, and a lot of fees.

5. What do they buy?

Look at the tokens in their history. Do they trade brand-new launches with tiny liquidity? Copies of those trades are where your price differs most from theirs. See why copiers get worse prices.

6. Do their losses look survivable?

Everyone loses. Look at how big their losing trades are compared with their winners, not just the total.

Managing risk: set the limits before you start

  • Keep “each trade” small. Pick an amount you'd shrug off if it went to zero. You can always raise it later.
  • Set “max per token”. It stops you piling into one token when a trader buys it again and again.
  • Set “stop copying if I'm down”. Choose the dollar loss at which copying this trader pauses on its own. Decide it now, while you're calm.
  • Turn on “skip unchecked tokens”. Failed tokens are always skipped; this also skips tokens with no rug check yet.
  • Decide on sells. “Copy sells” keeps you in step with the trader. Turning it off means you manage exits yourself, so have a plan, or use the optional take-profit and stop-loss.
  • Spread it out. Small amounts across a few traders means one bad trader doesn't sink your budget. It doesn't prevent losses.

Review, don't react

Check your copy history once a week. It lists every copy, including skipped ones with the reason. Ask whether each trader is still doing what you expected. If not, turn them off. Don't raise limits to win back a loss.

Risk note: Copying a trader means copying their losses too. Past results, theirs or their copiers', don't predict future ones, and memecoins can go to zero.