Contract Copy Trading Profit Secrets: How to Choose a Signal Provider?

Making money with contracts requires some real skills; you need to invest time and real money to pay tuition, and only after some trial and error can you barely grasp the essentials. Fortunately, many platforms now offer one-click copy trading features, allowing you to directly replicate the opening and closing operations of professional contract traders, as if you’ve hired a team of experts to work for you while you just sit back and count the cash.

However, while one-click copy trading can save you the effort of trading and research, it is definitely not something you can do mindlessly! Recently, I have been mainly trading contracts on 4E, and here I would like to share some tips related to copy trading on 4E that can help you get started more quickly.

How we choose to follow traders among hundreds or thousands of signal providers is a very important step. 4E will automatically recommend some excellent traders based on their returns over the past two weeks, but we should also learn to observe the traders' performance in various aspects. Personally, I pay the most attention to the following points.

Return rate is my primary concern; a higher return rate naturally means more profit. Of course, a higher return rate also implies higher risk, and the holding time should not be too long. Below are the historical records of a few signal providers I have chosen:

This trading record is quite good, with the historical records mostly being profitable trades. Although it uses 50x leverage, which is a bit high, it only trades BTC and ETH, which are relatively stable coins, and the holding time is around half an hour, with decent returns.

There’s also a little trick: some signal providers hold positions for a long time, which may indicate they are holding onto losing trades, hoping to make their overall returns and return rates look better.

Therefore, in addition to looking at the number and amount of profitable and losing trades in a signal provider's past trading records, we should also consider the duration of each trade. If the leverage is high and the trade is held for too long, even if that trade is profitable, if the holding time exceeds two or three days, it indicates that this trader has a habit of holding onto losing trades. You need to decide if you can accept this type of trader!

Another point I pay attention to is the total profit of followers. If the trader's profit is positive and the followers' returns are also positive, it indicates that the trader is making money and is also helping the followers to profit. If the followers' returns are negative, regardless of whether the trader's profit is positive, it indicates that the followers are losing money, and such traders can be disregarded!

Another thing to look at is the number of followers and their assets. These two numbers indicate how many people are following this trader and how much capital is being invested. If the asset number is large and there are many similar funds, it indicates that these high-asset clients recognize the trader's operations and are willing to follow the trades.

If there are very few followers and the assets are low, it may indicate that this trader is used to using high leverage for short-term trading, with high risks for each trade, aiming to make a big profit from a small investment. In such cases, the followers may also have a mindset of making a quick profit and leaving, which is not suitable for long-term operations with large funds!

Additionally, you can check the number of days the trader has been on the platform. The longer the trader has been on the platform, the more their practical operations have been tested by the market over time, showing good performance, and the number of followers is stable. Whether the trader is conservative or aggressive, they have at least gone through market trials!

Moreover, experienced traders not only have a longer time on the platform but also have richer trading data, allowing us to judge their trading habits and strategies. It’s even better if they have experienced bull and bear markets.

Finally, I want to emphasize again that contracts are inherently about leveraging small amounts for large gains, and you should never forget to set stop-loss orders. Copy trading involves contract trading, and you are replicating trading strategies. If you are not familiar with the rules of copy trading and contract trading, and you are unclear about the trader's trading habits, setting a "stop-loss" can be considered a relatively safe practice to avoid unexpected losses.

By the way, in addition to supporting cryptocurrency contract copy trading, 4E also supports forex trading copy trading. If you are interested in forex trading, you can give it a try. If the East is not bright, perhaps the West is; your wealth journey might not be in the crypto circle but in the forex circle.