Mandarin Version:
<aside> 💡 According to a survey, about 70% of copy trading users have experienced liquidation because traders have too many methods to optimize their trading metrics and rank high on the leaderboard, which leads people to mistakenly trust them.
</aside>
Summary of the BlablaBlock Team After One-on-One In-depth Interviews and Data Collection: Most People Have Experienced Liquidation, and the Larger the Principal, the Easier it is to Make Money.
With the trend of cryptocurrency investment, there are currently at least 10 crypto copy-trading platforms in the market, each with hundreds of traders to follow. It is very difficult to find a consistently ideal trader from the thousands of options available. Therefore, copy-trading platforms have launched leaderboards to help investors to evaluate traders based on different indicators, such as ROI, win rate, number of followers, and more.
But are these leaderboards and indicators authentic? Are there any flaws? 😟
On crypto copy-trading platforms, there are many ways to manipulate the leaderboards. Here are some examples: 🔽
ROI Leaderboard Manipulation
It is relatively easy to get on the ROI leaderboard, and the core idea can be summarized as "multiple accounts, high leverage, and hedging."
The specific steps are as follows:
With this strategy, the account will basically not lose money and can also earn commission from copy-trading.
Win Rate Leaderboard Manipulation
The key to ranking high on the win rate leaderboard is "never stop loss." Once you've decided on the order direction, don't exit the market unless you're making a profit. Even if you're only making a little bit of money, take the profit quickly to maintain a 100% win rate. If you accidentally take the wrong position, continue to hold the losing position and never set a stop loss.
Followers Leaderboard Manipulation
This is relatively simple:
When other users see that you have many people following your trades, they naturally develop a sense of trust and want to try it out for themselves, so you will have even more users.
According to the above description (which is real), 87% of the traders who can rank high on the leaderboard have similar ways of operating. If you follow someone on the ROI leaderboard, you will get liquidated due to high leverage; if you follow someone on the win rate leaderboard, you will get liquidated due to insufficient funds to offset the positions; if you follow someone on the followers leaderboard, you will get liquidated because they don't even know how to trade.
Traders in the Copy-trading Platform Rankings Have Amazing ROI Gains, But How Much Do They Really Earn?
Finding a good trader requires considering many aspects, and it's not just a matter of looking at one or two indicators to determine their trading skills. It also includes factors such as the total amount of funds, the risk-reward ratio, the execution time, and so on, which require time and effort to study.
This is also why BlablaBlock needs to exist. BlablaBlock has established a new mechanism to solve the problem of "managing traders" and has been proven to generate stable returns for users through data validation and real fund testing, providing users with an open, transparent, and trustworthy Web3 investment experience.
Why are there fewer problems with fraud among fund managers in traditional finance? The main reason is that governments have regulations and restrictions on asset management and fund managers, such as: