Social Trading
Following and watching, assessing records, alert workflows, copy limitations and conflicts.
What you will be able to do
Evaluate a public trader without treating rank as proof.
Before starting, Understand Your Execution is helpful.
- 01
What a wallet record shows
12 minRead the full article: A winning wallet is not a complete trading strategyTransactions, transfers, allocations and airdrops are not all trades.
Exercise
Name three events that can look like a profitable buy but are not ordinary market purchases.
What to look for
An airdrop or allocation, a transfer in from a related address, and an internal movement between the same owner's wallets.
- 02
Judging a record honestly
14 minRead the full article: A winning wallet is not a complete trading strategySample size, timeframe, cost treatment, drawdown and single-trade concentration.
Exercise
Two wallets show 70% win rates, one over 12 trades and one over 400. What else do you need before comparing them?
What to look for
Net results after costs, how much comes from one outcome, drawdown, timeframe, and whether open positions are marked at executable prices.
- 03
Using a social app as a research interface
12 minRead the full article: Use a social trading app as a research interfaceFeeds, following and notifications as a source of questions rather than instructions.
Exercise
When an alert arrives, list the four things you check before considering an order.
What to look for
Exact token identity, current quote versus the original entry context, liquidity and permissions, and your own cost and exit assumptions.
- 04
Why copying winners can lose
10 minRead the full article: A winning wallet is not a complete trading strategyLatency, different fills, fee drag, leader exits and concentration across followed wallets.
Exercise
The leader enters at 100, you enter at 120, both exit at 115. State both results before costs.
What to look for
The leader is up 15%; you are down about 4.17%.
- 05
Leaderboards and conflicts
10 minRead the full article: A winning wallet is not a complete trading strategyRealized versus unrealized, deposits, filters, survivorship and undisclosed compensation.
Exercise
Give two reasons a leaderboard can rank an account highly without any skill being demonstrated.
What to look for
Survivorship and filter selection showing only recent winners, and unrealized marks on illiquid positions that could not be exited at those prices.