Binance Futures Copy Trading is newly launched
Personally, I think that compared to the previous copying model, the following points are more important for Binance copying: a lower profit sharing ratio (10% copying profit and 10% copying fee rebate), then users get The profit is 90% (a relatively high level)
The previous order-taking model would give huge profits to the order-taking person, such as a ratio of 15-30%. Since Binance is the world's largest platform with many users and high activity, user interests should be protected as much as possible. Some traditional asset management commission ratios are 30-50%, so 90% of user profits are relatively high.
The calculation of the profit sharing amount is more important. In the past, the profit sharing model generally gave the salesperson a commission on the weekly profit, excluding losses.
The mature points of Binance’s copy trading model are:
Amount with profit distribution = max (total realized profit of investment portfolio * profit distribution ratio - profit distribution finance, 0)
In short, only when the profit of the order leader continues to break through new highs can he continue to receive profit commissions. This more reasonably protects the profits of the follower and will also make the order leader operate more cautiously.
For example: in the first week, the order leader makes a profit of $100,000, and the commission profit is $10,000. In the second week, the order loss is $90,000, and there is no profit commission. In the future, only when the total profit exceeds $100,000 again can there be a profit commission (that is, it needs to be continued Breaking through new highs), this greatly ensures a win-win situation for those who lead the order and those who follow the order.
Some suggestions for future development:
How to ensure that the profit margins of those who follow orders and those who lead orders are consistent has always been a problem.
If the follower can freely choose the profit sharing method, for example, only when exiting, the leader can share the profit (that is, the profit commission will only be made from buying to selling), then the profit margin of the follower and the leader will be basically the same. .
Then you can also use stepped profits. For example, if the profit margin is less than 100%, the profit commission is 10%, 100-200% is 15%, and 200% or more is 20%, similar to this (it can also be based on the stability of the orderer's operation method, and even the orderer himself can set up)
