How to follow up a contract and how to fill in the correct follow up settings?

How to follow up a contract and how to fill in the correct follow up settings?

Hello, I'm Mike! Today we're going to talk about tips and tricks for setting up contract trading followers. Many of you who are new to trading may be a little confused about these concepts, but that's okay, I'm going to take you step by step through how to fill out your order setup correctly and explain the intent and function of each option. Knowing the right settings will give you confidence in the cryptocurrency market, and whether you're following a professional trader or trading on your own, these tips will help you increase your trading efficiency and success rate. Let's explore them together!

Overview of Contract Trading Follow-Up Orders

On cryptocurrency exchanges, contract trading followers are a way to help newcomers quickly enter the market and mimic the actions of professional traders. Basically, to follow a contract is to select the strategy of an expert trader through the platform's order following system, and synchronize his trading behavior to your own account. In this way, even if you are not familiar with the market, you can still gain returns through the operations of professional traders.

Following orders not only allows you to trade with fewer mistakes, but also allows you to learn how to conduct technical analysis and risk control. However, following orders is not completely risk-free, choosing the right expert and setting reasonable parameters is very critical. In the following section, we will introduce how to fill in the correct follow order settings.

How to choose the right trading strategy and masters?

Before you start trading, it is very important to choose the right trading strategy and master. Different masters have different trading styles and risk preferences, so you need to choose a master based on your risk tolerance.

1. Choose a master based on risk appetite
Some masters may favor high-risk, high-return strategies, while others may opt for stable, low to medium-risk strategies. Novice traders should choose a lower-risk, more stable master to avoid excessive losses due to short-term fluctuations.

2. Observe the historical trading performance of master traders
Before choosing a master trader, it is important to check his past trading history and profit/loss ratio. This data will help you to understand whether the trading style of the expert meets your needs and to assess his or her risk control ability.

3. Understanding the trading strategies of the best
Many platforms will publicize the trading strategies of the masters or briefly introduce their modus operandi, which you need to read carefully to make sure that these strategies are suitable for your risk tolerance. You can also interact with the experts and ask them about their trading philosophy and future plans.

Steps and Tips for Follower Setup

Once you have selected a master follower, the next step is to set it up. Follow orders set up correctly will have a direct impact on your trading experience and returns, the following are some of the basic setup steps and techniques:

1. Setting the amount of follow-up orders
The amount of money you choose to follow a master is the amount of money you have to follow the master. This is determined by the amount of money you have. It is recommended that beginners start with a small amount of capital, observe the operations of the masters and adjust the amount of their own followers. Many platforms support dynamic adjustments to the amount of money you follow, so you can adjust it according to the market conditions at any time.

2. Setting a profit and loss limit
Stop Loss and Take Profit is an effective way to protect your capital. According to your risk tolerance, set a reasonable take-profit and stop-loss ratio. Generally speaking, take-profit can be set at 1.5 times to 2 times the target return, while stop-loss should be set at no more than 5%-10% of the total capital.

3. Adjustment of follow-up strategy
Many platforms allow users to customize their following strategies, such as setting conditions for automatic stopping or choosing whether or not to follow all of a master's trades. At this point, you need to set it according to your own needs, such as whether you want to follow only some of the master's trades, or whether you want to stop following the master when he reaches a certain percentage of his losses.

How to manage risk effectively?

Managing risk is a skill that every trader must learn, and it is especially important when it comes to order following. Since the follow-through involves the trading behavior of others, you need to pay special attention to risk control.

1. Decentralization risk
Don't put all your money into the same master's trades, as this reduces the risk of a single master failing. Ideally, you should choose multiple masters and diversify your followers' funds at the same time to minimize the overall risk.

2. Regularly adjusting the follow-up settings
As the market environment changes, the strategies of professional traders may also be adjusted. Therefore, you need to check the performance of the expert traders on a regular basis and adjust your trading setup as necessary.

3. setting up capital risk controls
In addition to setting a take-profit/loss limit, you can also set a maximum risk ratio for your capital. In this way, even if the market fluctuates significantly, you will not lose more than the set maximum risk amount.

How to check the performance and optimize the settings?

After you start trading, it is very important to regularly check your performance and optimize your setups. Each expert's trading strategy and risk profile changes over time, so you should keep a close eye on your trading results.

1. Regular review of transaction results
Most platforms provide a detailed trading history of each master, including profits and losses. Reviewing this data on a regular basis can help you understand whether the performance of the master is stable and whether it is achieving the returns you expect.

2. Adjustment of follow-up amount
If you find that a high trader's performance is stable and in line with your expectations, you may want to consider increasing the amount you follow. On the other hand, if a high roller's trading performance is more volatile, you may need to adjust the amount of money or stop following the trade.

3. optimizing the take-profit and stop-loss settings
As you gain experience, you will gain a deeper understanding of market fluctuations. At this point, you can adjust the take-profit and stop-loss ratios according to the market changes, thus increasing the overall profit opportunity.

Frequently Asked Questions Q&A

Q1: Can I follow more than one master at the same time?
A1: Absolutely! In fact, diversification is an effective way to reduce risk. You can choose to follow a number of experts according to your own capital situation.

Q2: How do I determine the take-profit/take-loss setting ratio?
A2: The Stop Loss and Take Profit settings should be determined by your risk tolerance. It is generally recommended that the ratio of Take Profit to Stop Loss is 1.5:1 or 2:1, but this can be adjusted according to the specific situation.

Q3: Will there be no risk at all in following orders?
A3: While following a trade can help new traders increase their success rate, there are still risks involved. Market volatility affects each trader's performance, so proper risk management is essential.

I hope this article will help you to understand more clearly how to set up contract follow up orders and maximize your trading efficiency and profitability. If you have any questions, please feel free to ask me!