About taking orders - Advice for those who follow orders
How to choose an excellent order taker? I'm not going to tell you to look at ROI, MDD, or any of that crap. As a senior leader, I will tell you the most insightful selection method.
Risk control capabilities to withstand extreme market conditions:
After observing the ranking of orders on the exchange, you will find that most of the previous real orders are left-side trading strategies, rather than right-side trading strategies of chasing ups and killing downs. This is because the winning rate of trading on the right side is low and it is easily affected in extreme market conditions. How to judge whether the market is extreme? There is a simple criterion: as long as the Binance Insurance fund drops on a certain day, it can be defined as an extreme market situation that day. If the net worth curve of a person with an order can be maintained in extreme market conditions, it is a firm offer with extremely excellent risk control.
Stability to cope with different market conditions:
The market can generally be divided into three types: rising, falling, and consolidation. There are few trading techniques that can perform stably in these three market conditions. If the trading strategy of leading traders is biased toward the long side, it may lose money in a falling market. When choosing a leader, look for a firm with a long enough history and stable performance under different market conditions.
The total profit of the follower is more important than ROI:
Some traders have great ROI, but Cumulative Copy Trader PnL has a negative one. If you only look at ROI, itâs hard not to fall into the trap. Therefore, when choosing to follow an order, you should pay attention to the total profit of the person who leads the order.
Summarize:
Choosing an excellent leader requires consideration of multiple factors, including risk control capabilities, stability, and total profits. I wish everyone can make money by following orders!
