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How to Stay 100% Safe in Copy Trading

0h 10m video Published Dec 29, 2023 Transcribed Jul 11, 2026 C Crypto SaQi Bhai
Intermediate 4 min read For: Traders and investors interested in copy trading, especially those looking to manage risk.
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πŸ“ˆ Moderate

AI Summary

This video explains how to stay safe in copy trading by adjusting leverage settings to limit risk. The speaker demonstrates how using lower leverage on a lead trader's account can prevent liquidation and reduce drawdown, even when the lead trader suffers large losses.

[00:01]
100% Safety in Copy Trading

The speaker claims it's possible to avoid liquidation in copy trading by using a specific setting, even if the lead trader's account goes to zero.

[01:08]
Example of a Loss Event

10-12 days ago, many copy traders lost money when the market dropped. The lead trader's account had a drawdown of 27% on the chart, but actual losses for some copiers reached -75%.

[03:30]
The Solution: Reduce Leverage

To avoid large losses, the speaker recommends reducing the leverage multiplier when copying a trader. For example, if the lead trader uses 5x, copying at 1x reduces both profit and risk proportionally.

[05:58]
Advanced Settings for Copy Trading

In the copy trading platform, go to advanced settings and adjust the leverage multiplier. The speaker uses 1x on a 5x trader, resulting in lower profit but much lower drawdown.

[07:08]
Risk Reduction Calculation

If a lead trader makes 100% profit monthly with 30% drawdown using 5x leverage, copying at 1x yields 20% profit and only 6% drawdown. This reduces risk by 5x.

[08:43]
Choosing the Right Multiplier

Adjust the multiplier based on the lead trader's leverage. For a 10x trader, using 5x halves both profit and risk. For a 20x trader, using 5x gives 25% of the profit and risk.

By reducing the leverage multiplier in copy trading settings, you can significantly lower your risk and avoid liquidation, though profits will also be reduced. This method provides a safety net against large drawdowns.

Clickbait Check

80% Legit

"Title promises 100% safety, and the video delivers a method to avoid liquidation, though it doesn't guarantee zero loss."

Tutorial Checklist

1 05:58 Go to the copy trading platform and access the advanced settings.
2 06:12 Check the lead trader's leverage (e.g., 5x, 10x, 20x). Prefer traders with lower leverage like 5x.
3 06:26 Set your leverage multiplier to 1x or 2x to reduce risk. For a 5x trader, use 1x to get 1/5th of the profit and risk.
4 08:17 Enter your investment amount (e.g., $100-$150) and click on advanced settings.
5 08:30 Fix the leverage multiplier to your desired level (e.g., 1x) and leave margin mode as trader or set to isolated.

Study Flashcards (5)

What is the key setting to avoid liquidation in copy trading?

easy Click to reveal answer

Reducing the leverage multiplier in advanced settings.

05:58

If a lead trader uses 5x leverage and you copy at 1x, what is the approximate profit and drawdown relative to the lead trader?

medium Click to reveal answer

Profit is 1/5th, drawdown is 1/5th.

07:08

What happened to copy traders who joined the lead trader near the peak before a 75% drawdown?

medium Click to reveal answer

They suffered a 75% loss and risked liquidation.

02:36

What is the recommended leverage for a lead trader to be safer?

easy Click to reveal answer

5x leverage is safer than 10x or 20x.

06:12

How can you calculate the actual drawdown of a lead trader from the chart?

hard Click to reveal answer

Check the maximum drawdown on the chart, but also look at historical lows beyond the displayed MDD.

06:40

πŸ’‘ Key Takeaways

πŸ’‘

100% Safety Claim

Directly addresses the core promise of the video: avoiding liquidation entirely.

00:01
πŸ”§

Risk Reduction via Leverage

Explains the mathematical relationship between leverage, profit, and drawdown.

03:30
πŸ“Š

Profit vs. Risk Trade-off

Quantifies how reducing leverage from 5x to 1x cuts profit from 100% to 20% and drawdown from 30% to 6%.

07:08
πŸ”§

Customizing Multiplier

Provides a practical rule: use half the lead trader's leverage to halve risk and profit.

08:43

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[00:01] tell you how you can stay 100% safe in copy trading. I mean, it's impossible for your account to be liquidated. That ca n't happen. The lead trader's account will go to zero, and others', but your account can't be liquidated.

[00:15] talking about profit everywhere, but the problem arises when ship is sunk, and we sit quietly and sit back, we don't have any money left. That's why we do n't accept loss. So, let me tell you about the setting. It's a

[00:29] small setting. Many people may already know about it, but I tried it myself and it benefited me. The lead traders I copied suffered losses. Other traders suffered losses, but I didn't because I had that

[00:41] setting. Okay, so this is a small thing, but you must apply it from today. small thing, but you must apply it from today. Before that, let me explain a little bit about what the scene actually is.

[00:55] I'd like to guide you a little bit more. Now, let's take an example here, which rather, here I'll do it in copies. Here, the second number will be the P4 provider's portfolio for copy trading. Okay, because a lot of

[01:08] I'll open this one so you can understand the whole thing. Okay, now what happened recently, 10-12 days ago, there was a loss. All the copy traders lost. The lot of people lost, and they also lost. The market went down. Okay, now

[01:23] also criticized them. There were a lot of videos of them about the P4 provider. Okay, now here, I'll tell you a little bit about some things by looking at their graph. Then I'll explain the settings. There are some things that you need to understand, otherwise you might make

[01:38] get too greedy and then it becomes a problem later, okay, now what happened, how will this setting save you, okay, now look, it was going great, but thank God the loss has been recovered, okay, now their profit percentage is very

[01:52] high, okay, the profit percentage is very high, till now they have made a profit of about 2, due to this, when there will be a loss again, then it can only be a big loss, okay, now from here we calculate

[02:05] that actually it is showing 27 here, but what actually happened at that time, okay, and who suffered a loss, and who suffered a huge loss, and who did not suffer a loss, and then how do you save yourself from that, okay,

[02:18] now you click here, I will zoom in on their chart a little, okay, this is just for the purpose of explaining to you, profit, okay, then when there was loss, the market came to 109, okay, so a

[02:36] market came to 109, okay, so a loss was booked at this place at around 75, okay, but now understand what is the scenario, the scenario is that brother, from here till here, people had made profit at 190, out of that it went to 75, okay, and it remained at 110, so it

[02:49] means that all these people did not face any issue, there was no problem of any kind, the loss was minus from the profit, but the problem is created there that when some people joined here, some did here, that is, those who joined in this area,

[03:03] okay, even some people might have joined here, okay, so they might have suffered a little less loss, these people suffered a little more loss, okay, now those people got very angry, okay, and they also said bad things, okay, whereas what the

[03:16] trader of the lead account is saying, friend, look, from here till here, such a good if You made a 100% profit and it went down to 20%, so what? That's absolutely what they said. Now, how do you avoid this scenario? So, so that the next person does

[03:30] n't have to say anything bad to you and you too stay safe from it. Now, the solution I've found, which many of you might already be doing, is that when the profit is very high, the loss can also be very high. Now, here, you know what the drawdown at 27 means.

[03:47] n't go below 27. But if you copied it here, it could even go to -75. Now, how do you avoid this scenario? You have to see for yourself. Instead of abandoning the trader whose performance seems good to you. Now,

[04:02] profit and there will be a lot of loss. If there is a drawdown somewhere, it will be more. So, what do I want? I do n't want that much profit. What I do is to ensure that I never take any risk. Now, those who had a negative at 75,

[04:14] God forbid, if it went down a little further, their account could have gone to zero. Okay, what would have happened to them was that they had a profit at 200, that would have gone down to 100%, their account, but those who joined here and were in negative at 75, they go to

[04:29] zero. Okay, now you understand how to avoid that thing. I will copied one account here. Okay, the second account is for the provider, I have done more in the second account. I will also share some traders with you in the next video.

[04:42] Okay, and you guys, all the good traders that you see, you have some numbers to share. Look, let me take

[05:01] show you my performance. No, not just at 24 or 24, so far we will call it profit at 17 or 18, that is, I invested $50 and I am in profit at $4, okay, whereas many of you will have more profit here,

[05:15] whereas my profit will be half of yours here, okay, now what is the reason for this, now what happened is that when people incurred huge losses, okay, for example, at -75, the portfolio came down from that current price, okay, my portfolio, not only mine,

[05:30] came down to 20 or 25, here the account could have been liquidated, God forbid, of the people who had followed or copied me were liquidated, and what was supposed to happen to me, I would have gone into minus at 25, that was all that was supposed to happen, okay, and if the

[05:44] account of the lead trader also went to zero, then what was supposed to happen to me, I would have gone to -30 out of 100, that is, I would have gone to 20 or 30, that is, maximum safety, a person Obviously, we are finding and copying a good guy, we feel that his

[05:58] but for our safety, what I did now is let me tell you the settings, you have to know that okay, even while copying, you get the option, otherwise you go into the settings, after going into the settings you have to go into the advanced, okay, I will

[06:12] now what I have done here, pay attention, this is just a game and nothing else, they are betting with 5x, okay, but some traders might be using 10x, some might be using 20x, okay, first try to get a 5x trader, the

[06:26] 5x trader is safer than others, after that you can put 1x or 2x on it, okay, so now now here, you have to making 100% profit every month, okay, his You have to

[06:40] check the drawdown on the graph. Like I made you check, you should not check his MDD there, like it is coming at 27, but look, it also went into minus at 75. Okay, because if we had placed it at the place above, then our minus would have been at 75. So,

[06:53] I told you. Then I will tell you the method of checking his drawdown. Now, let's assume that this person makes 100% profit every month, and his drawdown is like this. To give you the MI year, I am saying that his drawdown is

[07:08] his entire history. So, you can say that this person has gone from bad to -30. Okay, but the leverage that he uses, let's say he uses 5x. Okay, you have calculated it at 1x. When you use 1x leverage, then in the

[07:24] trade in which he would be making a profit of $10. If he is making a profit, then you will see a profit there. If his profit is $, your profit will be $. Okay, profit is $, your profit will be $. Okay, if that person has a loss of $, your loss will be one.

[07:37] if that person has a loss of $, your loss will be one. If he has a loss of $50, you will have a loss of $10. And at the same time, what was that person's profit? It was 100% for the month, you will have a profit? It was 100% for the month, you will have a

[07:51] profit of 20 per month. Now you understand that instead of 100%, the profit will be at 20. Okay, and instead of the minus drawdown at 30, you will have to drawdown only at 6. That means, this one-one setting of yours has reduced your risk by five or 10 times, but it has

[08:04] also reduced the profit. Okay, so if you want to copy someone, then how do you do it? Okay, first Okay, here you have to enter your amount. MashaAllah, check the amount of this person. $3000 is the minimum. Okay, but you have to do only 100-150. After that,

[08:17] you have to click on the advanced setting here. Okay, there's nothing to write about total loss etc. invest, and coming here, you can leave the margin mode on the trader, okay, if you can do that, you can fix it and isolate it,

[08:30] but then you will have to calculate it separately, but the leverage of the lead trader, click on it and fix the leverage, okay, and now you can manage it as per your wish, okay, now it is not necessary that you use only 1x, you

[08:43] can also use 2x, now you have to decide like this, you see, your trader uses 10x, okay, he uses 10x, so you are thinking that friend, I can take half the profit and half the risk from him, okay, then you use 5x, if there is a person with 20x, his

[08:56] trading seems very good to you, but he is very risky, then you can do it with 5x, if he uses 100% You will be making profit at 25. Okay, now if this was a P4 provider account, we were already trading with 5x.

[09:08] Okay, so to reduce the risk of that, I should do it with 2x, or with 1x. in other cond, but here I have done it with 1x. Okay, so according to this, you should see the profit of the next person, how much is he making in a month and

[09:23] how much drawdown is that person making on the chart, maximum half the leverage that he is using here, then your profit will also be halved, the risk will also be halved, the

[09:36] drawdown will also be halved. If you make it 1x, if he is doing 10x, then you can say that at 1x, it will be less than that, that is, he is making 100% profit. is, he is making 100% profit. You will make a profit per 10. If

[09:49] your account will only go minus 2. Did you understand this, then I would recommend all of you to understand this, then I would recommend all of you to was risky, is risky and will remain risky. You will never get a 100% solution in this. You have to

[10:04] reduce the risk in this and you can do that through these methods, otherwise anything can happen here at any time. Okay, if you like the person with more profit, but you can do it under this setting. Okay, and now demo trading has also come in this, I will

[10:18] find something for new people and tell them in it. Okay, if you like the I am following this person. Write his name in the comments that I am following this person, Okay, and for the next video, the next video will be on copy training only,

[10:31] for that, whatever comes to your mind. I have any questions, in the next video, Insha Allah, you will get the answers to all of them, okay, let's remember me in your prayers, okay, let's remember me in your prayers, Allah Hafiz

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