Bybit Copy trading review
Copy trading provides an excellent strategy for traders who are new at this thing and could only commit a little bit of time to do this. The copy trade is when the positions of one trader are copied by the positions of another trader.
Copying the trades of an experienced trader could be lucrative. So we prefer a platform that offers such services as it could help us with increased gains. ByBit is one such platform. Here we will learn how you can become a copy trader on Bybit and master it.
Can you copy trade on Bybit?
Bybit currently offers Copy Trading on both Spot and Derivatives. The goal of Bybit's Copy Trading platform is to provide Followers and Master Traders with a lucrative trading environment.
Even though Copy Trading has the potential to be profitable, there are dangers involved, and followers should be aware that the past success of master traders does not ensure future success. Additionally, due to slippage, the ROI of Followers might not be the same as that of their Master Traders.
Copy Trading adjusts Master Traders and their followers' trades synchronously. After the Follower picks a Master Trader and establishes the copy order settings, all new corresponding copy trades positions or orders started by the Master Trader will be automatically copied to the Follower's account with the market order.
How to become a copy trading subscriber on Bybit?
To become a copy trading subscriber on Bybit, you have to follow the following steps.
Create a copy trading account:
Create a crypto copy trading account first on your current Bybit account. After doing this, you can start trading by selecting the Copy Trading option under the Derivatives menu.
Fund your account:
Before you start trading, make sure you have money in your account. You can move money directly from your derivatives account to your copy trading account if you'd like. Currently, Bybit only supports USDT for funding.
Choose a trader to follow:
By looking through the main trader cards and making your selection. You can take into account things like their share of profitable transactions and the typical profit their followers make.
Choose your trading parameters:
Bybit will ask you to do so once you've started following the principal trader. You can specify your desired leverage, choose a derivative trading pair, and input your order amount.
Confirm your choice:
All you need to do next is confirm your decision to begin crypto copy trading. When you select Copy, you may begin imitating the trader's actions.
6 Best Crypto Copy Trading PlatformsCheck-in on your trades:
You are not required to be involved in any way. However, Bybit lets you check into your account at any moment to view your current positions. You can keep an eye on your trades from the My Copy Deals tab on the right side of the page, and you can close trades manually at any moment from the User Center menu.
How to become a master trader?
If you're skilled at trading, joining Bybit as a Master Trader is a means to invest and showcase your trading style while also earning profit-sharing from Followers that copy your style.
You must satisfy the following requirements to be eligible to become a Master Trader:
Check to see whether you have any copy trades open and if you are currently following any master traders. Close all open positions and move all assets out of your Copy Trading Account if you still have any.
To share their trading strategies, Master Traders can only create one account.
A minimum of 100 USDT must be in Master Traders' Copy Trading Accounts.
All new Master Traders on the Bybit Copy Trading platform must complete the New Trader Missions (shown below).
Finish trading three (3) derivatives.
Make 50 USDT while trading derivatives.
Read Trading Penalties for Bybit Copy Trading.
Join the official Bybit Telegram group for copy trading.
How to choose a master trader on Bybit?
When choosing your Master Trader, you should focus on the following four factors.
Return on investment (ROI)-
The easiest way to assess a trader's profitability is by using this metric. A trader is constantly lucrative if their profit trend is smooth and upward.
The 7-day profit/loss percentage-
This ratio is comparable to ROI, except it explicitly identifies a trader's profitability. For instance, a $250 7-day profit/loss ratio means that for every $250 the trader made for the preceding seven days, they lost $1
Follower profits over time-
You can see from this how much profit a specific Master Trader has enabled their Followers to make. Remember, though, that this number is cumulative, meaning that the more Followers a Master Trader has, the higher this number will be.
Trading background-
You can have a stronger insight into a Master Trader's trading practices and the underlying reasoning behind each trade by looking at their trading history. From there, you can decide if their trading approach matches your trading objectives. Whether a Master Trader employs stop-losses to control their positions is a crucial factor to consider.
Spot copy trading on Bybit
Bybit offers the facility of spot copy trading. It currently supports it only in USDT.
When creating a copy trade, take the following things into account.
Enter the total amount you are willing to invest.
You will invest the same amount as the Master Trader's order when they initiate an order.
The trade will still be conducted with the remaining balance if there is still a balance that is less than the Master Trader's order amount.
Copy Stop-Loss: The system will sell all of the Follower's orders into USDT at the market price and transfer the assets to the Follower's Spot Account once the loss on the user's order surpasses the specified stop-loss ratio. The Master Trader is also immediately unfollowed at the same moment. Please be aware that the Stop-Loss Ratio defaults to 0%, meaning that the stop-loss will not be triggered if no values are given.
It will not impact your stop-loss order if the Master Trader you're watching sells their orders before it takes effect.
If you have enabled spot margin trading, you can only move out the portion of your spot account's assets with a risk level of under 80%.
Trades made via Spot Copy Trading are not eligible for the incentive.
Derivative copy trading on Bybit
Bybit provides a derivative copy trading facility. It only supports it in USDT for now. Consider the following things when creating a copy trade.
For each order, enter a fixed margin amount. For instance, if you establish a fixed margin of 100 USDT, that amount will be the margin for each copy order.
Stop Loss (CSL): If your cumulative losses with a Master Trader reach a certain number, you are instructed to reduce the risk of your copy positions. As an illustration, let's say you decide to copy a Master Trader and set a CSL of 400 USDT. You will immediately stop following the Master Trader if the total losses on your copied positions with them reach 400 USDT. Your remaining positions will then be handled per your desired CSL settings.
Set your desired leverage after choosing Fixed Leverage or Custom Leverage. The default setting for the leverage is 15x.
Differences between derivatives copy trading and spot copy trading
For Master Trader
| Derivatives Copy Trading | Spot Copy Trading |
|---|---|
| You can initiate an order once you are successfully registered as a Master trader. | To initiate an order you have to contact their customer service after registering as a Master Trader and provide your UID to be added as a Spot Master Trader. |
| You have to source funds from the derivative account manually. | You have to source funds from the spot account manually. |
| It supports derivative trading pairs. | It supports spot trading pairs. |
| The maximum order amount limit is different for different pairs. | The maximum order amount limit is 1,000 USDT. |
| The trading signal duration is 10 minutes. | The trading signal duration is 12 seconds. |
| The maximum order quantity is 50. | There is no maximum order quantity. |
For Followers
| Derivatives Copy Trading | Spot Copy Trading |
|---|---|
| You have to source funds from the derivative account manually. | You have to source funds from the spot account manually. |
| To unfollow the master trader you have to manually cancel the copy or it automatically unfollows the master after 20 failed orders. | To unfollow the master trader you have to manually cancel the copy or it automatically unfollows when the stop loss is triggered. |
| It supports TP/SL per order and Stop-Loss/Take-Profit ratio on Total Order Cost. | It supports the Stop-Loss ratio on Total Order Cost. |
FAQs
Can you copy trade on Bybit?
Bybit currently offers Copy Trading on both Spot and Derivatives. The goal of Bybit's Copy Trading platform is to provide Followers and Master Traders with a lucrative trading environment.
Is copy trading in Bybit profitable?
Copy trading on Bybit can be profitable. The profitability of copy trading depends on the amount you have invested and the success of the trader whose trades you are copying.
What tokens can be used for derivatives copy trading with Bybit?
Bybit only supports USDT right now.
Are there any KYC requirements for copy trading in derivatives?
No, KYC is not necessary for copy trading in derivatives.
Team that worked on the article
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.