In both traditional finance and the cryptocurrency market, strategy trading is a very important and crucial method within the trading system. When faced with complex trading environments and extreme market conditions, even with solid theoretical knowledge and rich trading experience, it is easy to miss trading opportunities or make incorrect judgments and operations influenced by emotions. Strategy trading is an effective tool that can solve these problems.
Having trading tools is one thing, but knowing how to use them is another challenge. Previously, Binance launched the Strategy Square to facilitate users in directly copying strategies to address the usage issues of strategy trading tools.
Now, Binance has launched the Strategy Square 2.0 version, which not only allows users to copy strategies but also enables them to directly follow traders, enjoying all trading strategies of the traders and making profits alongside them. For investors lacking experience in strategy trading and time management strategies, following strategies is undoubtedly the simplest and most effective trading method, while strategy traders can also earn profit sharing, achieving a win-win situation. This article will specifically introduce Binance's strategy following products and usage methods.
If you have not registered on the Binance exchange yet, you can use the registration link and app download address below, along with video tutorials, to register on your own.
OKX APP is one of the three major exchanges globally, with a 20% reduction in trading fees upon registration!
OKX (overseas) registration address: https://www.okx.com/join/97763692
OKX/Binance/Huobi - Register/Download: http://18907.cc
Binance domestic registration: https://www.binance.com/zh-CN/join?ref=565010509
What is Binance Strategy Following
Binance Strategy Following is a strategy following system created in the Binance Strategy Square. This product introduces a profit-sharing mechanism, allowing strategy traders to enjoy the profits from strategy trading, with a maximum profit sharing of up to 30%. To protect the rights of strategy traders, specific strategy parameters will be hidden.
A simpler and more convenient strategy following product that can be activated with one click
Platform-streamed strategies with higher profit-sharing ratios
Initial supported strategies: Spot grid (including mobile grid), contract grid
Initial supported trading pairs: Strategies following USDT trading pairs
To apply to become a strategy trader:
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Upload valid proof of strategy trading;
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The investment amount in strategies within the last 30 days must exceed 1000 USDT;
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The number of strategies run in the last 30 days must exceed 5.
Strategy followers can activate the "lying win" mode with one click
For investors who want to follow, following mature strategy traders can yield more stable returns with lower trading risks. Mature strategy traders have established a relatively stable set of trading rules and risk management systems through long-term research and practice. By combining their historical return rates and other information, one can choose a preferred trader to follow, thereby sharing their return stability and obtaining more reliable investment returns.
Additionally, during the following process, followers can also learn and enhance their trading skills by observing and learning the trader's decision-making process, risk management methods, and trading logic, as well as understanding market trends and the judgment of trading opportunities.
Since everyone's risk tolerance is different, investors need to carefully assess the trader's historical performance, risk management capabilities, and trading style when choosing a trader to ensure that their investment goals and risk tolerance match those of the trader.
In Binance Strategy Following, you can freely choose traders according to your preferences and can activate following with one click.
During the following process, strategy followers do not need to perform additional operations; all following strategies are automatically synchronized with the trader's strategies, meaning the trader is effectively running the strategy for you. When the trader starts a strategy, the follower's strategy also automatically starts, and when the trader stops the strategy, the follower's strategy also automatically stops.
During the operation of the following strategy, you can choose to stop the strategy. If the strategy is profitable after stopping, you can receive profit sharing. Profit sharing = strategy profit * profit sharing ratio (the profit sharing ratio is determined by the trader and can be viewed when selecting a trader).
In the Binance APP, click on trading, enter the Strategy Square, and select a trader.
Here you can directly search for the trader you want to follow or choose a trader from the recommended module.
On the trader's personal homepage, you can view historical strategy following data and see their current trading strategies. By clicking on the card, you can view the strategy details, including strategy mode, trading pairs, and other information, as well as the profit sharing ratio set by the trader.
If you want to follow, enter the investment amount and click to create the strategy.
Once the strategy is created, you can view it, and when the strategy's operating conditions are triggered, it will run automatically.
During the strategy's operation, you can actively stop the strategy. If you do not actively stop it and the trader stops, you will receive a notification that the strategy has stopped.
After stopping the strategy, if it is profitable, profit sharing will be conducted at a fixed ratio, and the profits from profit sharing will automatically transfer to your fund account.
Strategy traders earn free traffic and high profit sharing
For strategy traders, while engaging in strategy trading, they can earn high profit sharing through following, while also being able to hide key points in the strategy, thus maintaining the core competitiveness of the strategy. Additionally, following can help establish an IP to gain more marginal benefits, achieving multiple gains.
In Binance Strategy Following, if your strategy is of high quality and has a higher stable return rate, you can also receive additional exposure from the platform, gaining more free traffic, attracting more followers, and earning more profit sharing income, thus forming a virtuous cycle.
In the initial phase, the platform will invite some quality traders to follow. If you meet the following three conditions, you can also apply to become a trader, setting the profit sharing ratio (0-30%) when creating the strategy. After successfully publishing the following, you can share the strategy to gain a trader's exclusive identifier.
When the following user's strategy stops, if it is profitable, they can receive profit sharing (profit sharing income = profitable portion * profit sharing ratio), and the profit sharing income will transfer to a separate system account. The income will be transferred to the trader's fund account during the settlement period, which is every Monday at 0:00.
Assuming the following strategy-A sets the profit sharing ratio at 10%, when follower B stops the strategy, if the strategy's profit is 100 USDT, the trader's profit sharing will be 10 USDT (100*10%); if follower B stops the strategy when the profit is -10 USDT, no profit sharing will be obtained.
*How to apply to become a strategy trader:
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Upload valid proof of strategy trading;
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The investment amount in strategies within the last 30 days must exceed 1000 USDT;
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The number of strategies run in the last 30 days must exceed 5.
If you have already become a Binance strategy trading trader, you can choose the profit sharing ratio when creating the strategy.
Note: The profit sharing ratio cannot be modified after the strategy is created;
The trader's following strategy only supports full liquidation when stopped.
After successfully publishing the following, you can share your following poster, and users who want to follow can scan the QR code on the poster using the Binance APP to view the strategy and perform following operations.
Traders can view strategy details and profit information at any time.