In this article, you will learn how to properly set up Bitget copytrading by working with us!
But first of all, if you are not registered on the Bitget Exchange – Do it and get a 5% bonus on your deposit!
Link to register from a computer
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In order for copy trading on Bitget to work stably both during strong price movements and during consolidation, we will use two trading strategies. In this article, we will take a detailed look at Bitget’s long-term copytrading strategy. But after setting up this strategy, also carefully study our short-term trading strategy.
Long-term copytrading strategy on Bitget – details
The main goal of the long-term strategy is to catch big long-term price waves.
The number of probable trading situations per year is to 10
Maximum trading leverage – 20
To reduce risks in 2 times, you can use the 10th leverage.
The maximum amount of entry into one position is 5% of the total deposit. (For example, if you have 20 leverage in the settings, and the deposit size is $1000, then the maximum entry into one position will be:
(1000$*20 leverage)*5%= $1000
In case you want to risk less and use the 10th leverage, entry into one position will be:
($1000*10 leverage)*5%= $500
The position is entered by three equal orders (1.66% each). This is necessary in order to partially fix profits when the price moves towards the global target. That is, in the Bitget copytrading settings, in the “fixed amount” column, you need to enter an amount that will be equal to:
$1000*1.66%=$16.6
To join a long-term trading account, where you need to enter the settings, follow this link
Unfortunately, you can enter the amount only with whole numbers. Therefore, to write $16 or $17 is up to you.
But if 1.66% of your deposit is less than $10, then the platform will not allow you to keep this value. What to do in this case? For example, your deposit is $500 and 1.66% is $8.3. In this case, you need to set a fixed amount of $10, but the leverage should be such that after taking three orders your position would be no more than $500. In this case, you need to use the formula:
Required leverage = (your deposit) / number of orders / (fixed amount)
500/3/10=16.6=16 leverage
When will we increase the number of positions in Bitget copy trading?
In order to enter the next position, you need to wait for one of three factors:
1) The price went against our position to the next liquidity level;
2) A break-even stop was placed on the position;
3) The first local take-profit for the position is fixed.
Risk control of long-term trading strategy
When entering a position for 5% of the total deposit, the probability of losing the deposit even with 20 leverage is zero. In this case, the first leverage is entered, and the price can squeeze even $0. If you have chosen the 10th leverage for trading, even more so.
If the price continues to move against our position, we buy at the next liquidity level. We do not place a stop order on this position. In the event of a price rebound and movement in our direction, we take profit on the second position. Depending on the situation on the market, we continue to make transactions, keeping the first position. If we are unsure that the first position will be profitable, and the average price for two positions is profitable or break even, we can close all positions.
If the price continues to move against our two positions, we are looking for an entry point for the third position.
ATTENTION! We trade the third position with a stop to prevent the possibility of liquidation the position. Trading with a stop is performed until we close the second position either at breakeven or at profit.
Pros and cons of a long-term copy trading strategy on Bitget
Each trading strategy has its pros and cons. The thing is that each strategy is designed to achieve a specific goal. Therefore, for other purposes, it may be either inefficient or unprofitable.
In the case of the Bitget medium-term copy trading strategy, you can see the following advantages:
- Each profitable trade brings notable profit
- No losses, only drawdowns of the deposit for some time are possible
- In the case of trading in a trending market for several trading situations, you can increase your deposit several times
But in a place with these advantages, there are also disadvantages:
- Few entry points as long-term waves are traded
- In consolidations, the strategy is ineffective
- In case of a mistake, you will need to sit out the loss.
This fact freezes the deposit, taking away mobility.This trading strategy should be paired with a short-term copytrading strategy on Bitget. Do you have any questions? Write us!