Binance Copy Trading Tutorial: How to Copy Trade Futures

[00:01] tutorial if you're looking to copy trade using the binance platform we'll go over exactly how it works how to navigate this system how to actually go ahead and other things you should be thinking about if you actually want to go ahead

[00:14] the description binance copy trading for right now is Futures only so if you're Trading you won't be able to use this I will leave a link below to binance as well if you are in a country that allows future trading you can get a deposit and

[00:27] trading bonus you can check the details below if it's available for you but for Futures and then once you click into the binance Futures page you can see copy trading up there now you can see it kind of disappears right now as I said this

[00:39] is a brand new feature so if you uh can see it here copy trading just click on that or you can just search for binance copy trading in your application and it's there as well uh you can get to this page now once we're here you can

[00:52] see the overview so firstly we need to search uh for all the copy Traders and their performance over time so if you come down to the portfolio list right here you can see uh different things that you can look at so the 7day I would

[01:07] change this to 90day or 30-day what we're looking at here is the history of we're really looking for is you know have they got a history and is that obviously losing a lot of money you're not going to want to copy trade so go to

[01:22] something like 30 or 90 and you can see what they've done over that time now as I said this is brand new right so we're going to go to 30-day and see 30day history right here then what we can do is actually search via these options

[01:35] here so p&l is profit and loss so you know what's the actual p&l of that trading account so you can see that is uh the best Trader right here and then the p&l of various other Traders you can see this is in dollar terms um so that's

[01:48] return on investment so you know the percentage gain versus what they had in their account so obviously the more profitable Traders you're going to be wanting to look at however what I would would suggest is going for the longest

[02:01] time frame possible you want people that are actually making money over you know a longer time frame because you know anyone can get right up to the top over a 7-Day period they get lucky in a trade goes really well but then the rest of

[02:13] you have to look at all of the history of the copy Traders then we can go to Roi which is obviously return on investment here so you can see that MDD is maximum draw down so the maximum draw down is if they've lost a trade or they

[02:28] have losing trade what is the maximum draw down uh for those accounts what I would suggest is you want people who are making you know decent returns and not having huge draw Downs in the accounts because if if they're having big draw

[02:41] Downs what type of risk are they taking are they you know are they kind of too trades and everything like that so you can obviously make those decisions but see what the maximum draw down is the maximum draw down here 0% right so he's

[02:55] not actually had a loser um in his trades and then if we go down you can see maximum draw down 0.05 that getss much worse for certain Traders again so if they're actually you know a decent Trader or not or if they're just you

[03:08] definitely don't want to be going through that then we can see here AUM the traders who have the most under management it's right here so this guy has 800,000 under management 480,000 430,000 under management now traders

[03:24] management are going to trade very differently because they have copy Traders uh they may trade larger assets uh because with more trading you need more liquidity right so you need notot

[03:38] have traders that have very small amounts under management are they trading altcoins right so that can actually be part of your strategy to maybe have a collection of them that trade different things that's up to you

[03:53] of people that are actually copy trading them I think there is a limit of around 500 per copy Trader so what you can do is press copy or press full here so if you press full uh and it's full so there's five 500 Traders copying if

[04:07] someone drops out copying then you can obviously fill that place um copy Trader p&l is different because when copy trading you can actually copy the Traders entries and exits and their trades but you can also really um choose

[04:23] copy the exact size that they trade in or are you going to copy smaller amounts uh is your stop loss and take profit level different to theirs you can choose all of that and so what I would suggest is looking at the trader themselves what

[04:37] they're doing because the copy Traders p&l your p&l and the others people's uh trading p&l could be wildly different to what the copy Trader is doing because they may have different inputs so important to know that difference and

[04:51] well but that is navigating this system and looking through different copy click on our copy Traders page and you can see all of the details of how they making the profits that they're making so we're going to click on this guy

[05:05] right here uh and then see exactly what they're doing so what we can see is how they trade and every single trade that they've made so we know if they're maybe day trader if they're like you know trying to scalp trades we can see all of

[05:19] that and that's going to uh tell us a lot about what they're doing so as you can see here only trading Bitcoin and eth uh due to liquidity right so this Trader has a lot under management as you can see almost $500,000 so uh just

[05:31] Bitcoin underneath because maybe the trades are larger or maybe they have a really can't trade those smaller coins performance maybe we can look at 30-day performance we're going to look at 30-day p&l so 30-day p&l is pretty good

[05:45] right as you can see here they're you know making decent profits over the last 30 days return on investment as you can see here around you know 2% over 30 days you know it's not not a terrible uh performance there current positions not

[05:59] in the the market right now so as you can see if they have current positions the trader isn't trading or doesn't have any open positions neither will you as a copy Trader position history we can see here so we can look exactly what this

[06:12] Trader is doing so this Trader went long uh eth and they opened uh at at 8:00 in evening and closed about an hour later so that was basically a scalp trade or

[06:24] or something like that right and so a profit there you can see they went short Bitcoin uh and again they kept the position open for a couple of hours uh so we can see here usually the positions are open for uh probably a couple of

[06:37] hours maybe a day something like that you know overnight uh so pretty kind of day trades scalp trades maybe they're looking at um you know different technical analysis to open these trades but a lot of these trades are you know

[06:50] short-term day trading scalps like this and you know small kind of profits over that time um obviously with leverage that can trange change as well though uh of the actual trades that they've gone in and out of as a copy Trader you would

[07:03] be looking to copy the opens and the closes right so you can change the amount that you put in per trade transfer history and then copy Traders you can see all of the different uh copy traders that are copying this Trader and

[07:15] made as well if you're happy to copy a Trader you can click copy and then you can really dial in the way you want to actually copy these trades so if we click on copy on a Trader as long as we're allowed to do that uh if it's not

[07:28] full of the copy Traders you have two options here you have fixed amount or options here you have fixed amount or fixed ratio so fixed amount each Order each order will be opened at a fixed margin amount or cost per order uh so

[07:42] let's say the trader opens a trade you can say every trade that they open I want to open a trade with a specific dollar amount in my account so if they open one trade with a $1,000 or whatever you can say I just want to open each

[07:56] matter if they're trading a ,000 or 500,000 your trade is exactly the same maybe it's $1,000 per trade or whatever fixed ratio is your um opening trades in

[08:08] the relation that they open trades in their account right so again it's not the exact amount that you're copying but as an example if they have you know $100,000 in their account and they open a position in Bitcoin and that position

[08:22] is around 10% of their trading account you will copy that for you now you may they have have but it's going to open 10% of the amount that you have so if they open a trade with 30% of their account 30% of your account will be

[08:37] traded as well so you're um trading with the same percentage that they're trading right which one should you choose um it really depends you know with fixed amount it's very simple you know exactly how much you're copying each time so

[08:51] your $100 per trade the fixed ratio this could lead to you know different margin different margin requirements they have a different amount of money uh so I would just be careful with you know how exactly you're trading um you just need

[09:06] to make sure that you have enough margin in your account to fund everything so fixed ratio may be a little bit better to go for because they're opening 20% of their account they're opening 50% of their account so that's uh maybe

[09:19] know exactly how much percentage they're opening and you're opening the same percent with fixed amount as long as you have lots of margin in your account it but of course if they're opening positions that are let's say 20% of

[09:34] their account with a fixed amount for you that could be 20 30 40 50% of your trades open at once so you just have to make sure that whatever is happening here you have enough margin to fund trades because if you don't uh then the

[09:49] margin is going to get quite tight for you and you could get liquidated if you're making losses losses in some positions whereas the the the actual enough margin we'll look at fixed amount trading first then this is when a Trader

[10:02] opens a position you open a position at the same time in the same direction but you just choose a flat amount to open the trade with so let's go cost per order would be $50 so $50 per trade you open that the total Copy amount is the

[10:16] total amount of margin that you want to put in to copy this Trader with so you know if they're opening uh 10 trades cost per order would be 500 for you or the total cost 500 for you and the copy amount you want an amount of margin that

[10:32] potential losses of those trades and keep them open so the total amount that you want to put towards copying that Trader and then if you have many trades open that will be this so this has to be more than the cost per order and then

[10:46] the total stop loss is you can actually create a stop loss where if your margin which is this this th000 here if this gets down to a loss so let's say they open seven trades a fewer in a loss fewer maybe flat and you're getting down

[11:02] to you know like a 30% uh loss on your total Copy amount that's when trades will start to be stopped out for you now this copy Trader May ride this down to 50 60% loss if you're not comfortable with that and you you don't want to ride

[11:17] that or if they've just opened a lot of orders uh you know and you're actually having a cost per order that is more than them or as a percentage of your fixed amount what you can essentially do is just say bottom line is that if my

[11:33] ,000 account is 30% down I start want to I I want to start trading out of positions and start liquidating them for a loss so that you can see down here your total loss would be you know 30% right so that's something that you can

[11:49] change the Copy amount you can add more margin if you want obviously that just means that you um are putting more towards the trades this is a stoploss saying like when we're down 30% we're out advanced settings you can copy the

[12:03] margin mode of the lead Trader or you can go to fix mode so they might be using uh isolated margin or cross margin isolated margin is where they fund individual trades cross margin is where you just have an amount of money to fund

[12:17] all of the trades uh isolated margin can be a little bit um uh less risky than cross margin so if you go to fixed mode you can actually change this because remember what's Happening Here is when they open a position you open a position

[12:31] in your futur trading account as well uh and so what you can do is manage those positions you can actually go into your Futures Trading account and just edit of them at a profit or a loss whenever you want and you can add margin to

[12:44] different uh positions so you can actually do this yourself if you want to choose that if you want to know more about Futures Trading I'll leave some it goes through all of these different things like margin and leverage and

[12:57] different options are so that video is down in the description you can just copy uh the lead Traders margin here leverage you can copy their leverage again if they're trading with let's say 2x leverage and they're taking you know

[13:12] less risk in a position if you're opening with 10x leverage you're you're copying the side of the trade if they're long you're going long but the risk is only using 2x leverage and you're using 10 It's a larger amount of your position

[13:29] maybe you don't have enough margin maybe a 5% loss for them is like a lot bigger loss for you you get stopped out you lose money actually they just were using know price came down and then went back up they actually you know made a good

[13:43] trade but because you were using more leverage you got stopped out so that's leverage you got stopped out so that's where U changing this essentially means that your p&l can be very very different to the Traders pnl and so yes you're

[13:56] you're copying when they go long or short when you when they go in or out but if the amount of Leverage that you're using and the amount of margin different you could get very different results so definitely keep that in mind

[14:09] maybe you just want to choose copying the Traders leverage no or you can just choose a very small amount and uh and and trade that right so Traders may use anywhere from kind of 5 to 20 x margin maybe that's not that's just not

[14:22] you know what I just want to copy but one 1X margin would be no margin or two or 3x again that's up to the individual margin can be risky especially if you're copying a Trader who has different amounts in their account as to you know

[14:35] what you have then right here for each single position you can choose a different to here this is for your account generally and what it's trading it may have 10 positions open this right

[14:48] here is each individual position so if the position itself is down 15% cut me want to take I don't want to go down 30 40% again if the trader has a different

[15:00] stop loss to you your p&l is going to be different to them but you can do that on a position basis and you can say if we're making a 25% gain or a 30% gain uh you can t take a profit and actually trade out of that position and again

[15:15] they may have no takeprofit they may ride it to 60 or 70% they may you know do something else so your p&l may be different to them if you choose this but comfortable with kind of seeing you know

[15:29] sure these Traders can make losses and they may ride a position down kind of we can also choose Max position per symbol so again if one Trader is taking symbol so again if one Trader is taking a huge bet on one position then you can

[15:44] don't want the whole account getting wrecked by one trade and so you can put that in maybe 50% or 20% and again your pnl is going to be very different to the trader if you're um you know doing this but that's up to the individual Trader

[15:58] then just read the service agreement I would read this carefully there are many risks here especially with copying traders in terms of your margin right because it's really up to you you're copying the ins and outs but the margin

[16:11] you're using how much margin you have to fund trades how much leverage they're using all of that is going to determine um how your account is actually traded right so they could be using less margin than you more margin than you if you're

[16:25] not managing these positions carefully you can get stopped out in one trade you're like what happened they just used a ton of margin you copied that you didn't have enough margin in the account and they kind of you know didn't blow up

[16:37] their account but you can blow up yours so there are many risks here and I would you're happy with that uh and then go ahead and copy and you can essentially open trades when and if the lead Trader is opening the trade if you do have any

[16:50] in your Futures Trading account you can also see them in the overview right here so if you just go to this uh Arrow right here it's going to take you through to uh all of the positions that you have open so this is brand new I've not been

[17:04] platform is right now is it's just open but ongoing any trades that you have an amount of margin right let's say you have $1,000 in the account for margin

[17:16] have $1,000 in the account for margin you can see the realized p&l net profit here uh so if you know your net profit is in a loss and the margin balance is getting pretty low you can add margin in if you want you you can take it away if

[17:29] you want or the portfolio list right here is going to show you every single trade and then on the right hand side there should be an option to essentially in a loss you want to cut it you can manually cut it here there'll just be an

[17:42] option to cut it an option to view it you can see all of this you can click these this will go through to your Futures Trading screen and you should be able to see all of those orders uh live as well because your account will be

[17:55] opening these trades it's just an instruction to say open this trade when this other Trader opens their trade but these trades are yours they're your any way that you want but you can see all ongoing trades any close trades here

[18:08] I have copy traded before and there are definitely some risks with copy trading the main one is getting wrecked with leverage uh the copy Traders can go into some really crazy trades short term and if you're using a fair amount of

[18:21] Leverage it can really wreck those trades really really quickly so I would trades really really quickly so I would recommend this with very very low Mar in and putting way more margin in your account than you think you need because

[18:34] trades can go very wrong very quick with this type of trading it definitely is a risk also what you may want to do is try and spread the risk over a few different Traders so rather than just copying one Trader maybe you know copy six or seven

[18:47] Traders or whatever it is for you and have like a portfolio of copy Traders my two cents on it anyway link below to binance and some more helpful videos uh down in the description as well for you I'm James is moneyz Che for watching and

[19:01] I'm James is moneyz Che for watching and I'll see you in the next one