Social trading is a staple of the cryptocurrency market with thousands of retail traders choosing to follow experienced peers instead of trying to figure out every tiny minutia of the blockchain industry on their own. There are many ways to make this approach work very well regardless of the composition of your portfolio.
WunderTrading is one of the leaders of the trading automation sector of the cryptocurrency industry. Itscopy trading crypto marketplace is also one of the best as it offers you opportunities to work with very specific experienced traders that fit your risk style and portfolio allocation.
The overview of the WunderTrading’s product lineup
When it comes to automation, this platform is an excellent destination for both conservative investors and aggressive day traders. Thanks to the flexibility of the tools offered by the company, it is possible to create any type of automated trading system without much trouble.
Here are some of the products that may catch your attention:
- Preset bots like DCA and GRID. These can be launched without any preparations on your end. The bots use the distributed cost average approach to reduce the cost of investment in the long run while fulfilling your requirements for overall position size. The bots can be adjusted to work as perpetual trading systems or to buy and hold assets on the spot market.
- Custom ATS. You can create any bot using the instruments in the dashboard. Setting up an automated trader is quite simple and does not require you to have any prior experience in coding, script writing, or even trading. Even complete newbies can easily start using the platform and make unique trading systems.
- Social trading. The marketplace is a great place to look for people to follow. If you want to create a bot that will copy actions of experienced retail traders who outperform the market on average with an impressive level of consistency, you will be able to do it here without venturing out into the wilderness of the crypto market.
While many come to WunderTrading for custom bot building experience, they often stay for mirror trading functionality allowing users to build diversified portfolios using bots following retail traders with different risk styles and trading methods.
The advantages of the crypto copy trading platform
Here are several key benefits of using WunderTrading as your main destination for trading automation:
- An excellent user interface. The dashboard is tightly designed to ensure that users have just enough information to make reasonable decisions. You can use advanced settings if you need to, but what is shown by default is more than enough to create an automated strategy. You can also skip some of the options when setting up a bot.
- Many integrations with other platforms. When using bots from this platform, you can effortlessly connect them to a myriad of centralized exchanges including Binance, Kraken, OKX, and many other crowd favorites. It is hugely important to have this selection of compatible CEX platforms.
- A huge selection of retail traders to follow. The marketplace features several hundred successful retail traders who are qualified to offer their managing services. Some do it for a small fee. Others may allow you to follow them free of charge. Note that only verified traders with good results over the last six months of trading can be featured in the marketplace.
These advantages allow newcomers and experienced veterans to quickly find a good trader to follow and copy their in-market activities. Let’s talk about how you can get started!
Using the WunderTrading copy crypto trading platform
What is crypto copy trading? It is a natural evolution of the web 2.0 social trading concept that shaved off everything unnecessary and cumbersome to present itself in its full glory. The WunderTrading platform does not want users to build relationships with managers and discuss the latest trends in the crypto market. Instead, it provides you with information.
You can make a selection based on a plethora of metrics that you can analyze when browsing through the catalog of available retail traders offering their portfolio management services to WunderTrading’s clients.
How to get started:
- Go to the WunderTrading dashboard and click “marketplace”.
- Find traders who work on the same exchange as you (we will talk later why it matters).
- Click follow next to names of traders whose performance impressed you.
- Go to “My Bots” and launch newly created copy trading bots.
The process is that simple. However, you definitely need to pay attention to some settings when creating a new bot.
Here are two parameters that should never be ignored:
- Position size. Limit bots to a certain share of your portfolio. You can set the limit in percentile points or in absolute value (in USD, for example) to ensure that bots never overextend market positions. While it is a good idea to follow an experienced retail trader if you don’t have enough experience, you should always reduce the risk of opening a market position to a level that feels appropriate for your particular case.
- Stop loss and take profit. Delayed orders make it easier to aim at certain profitability goals or protect your portfolio from excess losses. Many experts suggest using SL/TP ratios like 1:3 or 1:1. It means that you need to put stop loss orders at a certain level depending on the take profit. For example, if you plan to make 30% profit on a deal, put the SL order at 10%. This ratio works well for long-term positions. Using SL/TP orders is a necessity if you want to stay safe in the crypto world.
How to pick a good retail trader to follow
The marketplace features hundreds of experts working on multiple centralized crypto exchanges. It can be quite challenging to choose someone who corresponds with your risk style and general requirements for an investment. Obviously, you alone can identify which risk profile and profitability target fits your portfolio. However, there are some things that you should do regardless:
- Picking a trader working on your exchange. Different CEX platforms have unique fees, commissions, trading volumes, market orders, and more. If you start following someone who works on a different platform, it will create issues even if you create a new account on an exchange used by your preferred trader. You will need time to adjust which can be problematic. If you contemplate copy trading crypto on Binance, you should work with someone also using Binance.
- Check the whole available trading history. By default, the marketplace shows only the last month of the trader’s history. Expand the scope and look at the performance on a bigger scale to gage the efficiency of traders before following them.
- Remember that past performance does not guarantee future results. Never commit too much to a single retail trader you follow. They are human just like everyone else. It is possible that they make a mistake and cause significant losses which they may be comfortable with. Always have a small seed of doubt in your head when choosing traders to follow and how much of your portfolio should be given under their control.
The main takeaway
The WunderTrading platform offers a great level of flexibility and diversity to their clients. You can create a balanced portfolio using only copy trading bots following retail traders with different levels of risk and profitability.