WOO X Social Trading is a feature for users looking to diversify their portfolio or improve their performance by copying the positions of highly experienced Lead Traders that are specially curated and verified by the WOO X team.
This is well suited for novice traders who are looking to obtain exposure to the market in a hands-off but reliable way, as well as for experienced traders who wish to further diversify their trading portfolio.
With Social Trading, not only do you have the opportunity to profit by copying Lead Trader strategies, you will also be able to analyze the Lead Trader’s order history and learn directly from the best.
To check if your country/region is supported, please visit ▶ List of unsupported countries/regions.
How does WOO X Social Trading work?
As a Copier, you should first learn to identify the Lead Traders who fit your trading preferences and risk profile by browsing the Lead Trader Leaderboard.
Then, you can determine your investment amount and start copying your selected Lead Trader’s strategy.
USDT is the default asset used in Social Trading. It is a stablecoin that is pegged at a 1-to-1 ratio with the US Dollar fiat currency, backed by Tether’s reserves. You can check out ▶ How to buy crypto with fiat currencies - General on how to buy USDT with fiat.
After the funds have been allocated to your selected Lead Trader’s strategy, whenever the Lead Trader opens or closes a position, the system will automatically invest with your funds based on the order that the Lead Trader has made, and the copy mode you have selected.
How to access Social Trading?
You can access Social Trading from the home page of the WOO X mobile app. (AppStore | Google Play).
How to analyze a Lead Trader’s profile
Learning how to analyze a Lead Trader’s profile is the key to identifying a Lead Trader who suits your trading preferences and risk profile. Below is the description of each item that is displayed on the Lead Trader’s profile. If you are interested in detailed calculations, please check out Related Calculations.
- ROI - Return on Investment: A simple percentage of profit or loss a Lead Trader has made in the fixed period selected, based on their initial investment amount. The higher the percentage, the more profit this Lead Trader has made over their initial investment in the specified period.
- PnL - Profit and Loss: This indicates how much the Lead Trader has earned or lost in USDT value during the specified period, including both realized and unrealized profit and loss.
- Win rate: The percentage of the Lead Trader’s winning days when the account balance is not 0.
- Max drawdown (MDD): This indicator is the downside risk over a specified period. It describes the maximum observed loss from a peak to a trough of a portfolio. The higher the value, the more downside risk has been observed.
- Balance: The total amount of funds the Lead Trader currently has.
- Copier assets: Indicates the sum of all Copiers’ balances currently copying this strategy.
- Copiers: Current number of Copiers count and total available copy seats. When the seats are full, you will need to wait until there are available seats again to be able to copy. You can follow the Lead Trader’s profile and check for the availability of seats from time to time.
- Profit share ratio: The percentage of profit that the Lead Trader will gain from your copied profit. We will explain more about the profit share mechanism later in this article.
- Sharpe ratio: A higher sharpe ratio indicates that a Lead Trader's strategy has a higher risk-adjusted return when compared to other Lead Trader strategies of a similar composition. This means that it provides more return per unit of risk.
How do I start copying?
Once you have selected the desired strategy from a Lead Trader, click on the ‘Copy’ button at the bottom of the screen.
You will be presented with some customizable options before you start copying. Please see the explanation for these items in the section below.
You will start copying after you’ve confirmed your copy settings and agreed to the terms.
Copy and Counter
- Copy and Counter decide the order side relation between you and your selected Lead Trader.
Copy: You will open and close your copied position on the same side as your Lead Trader. When your Lead Trader opens a long position, you will copy a long position. - Counter: You will open and close your countered position on the opposite side as your Lead Trader. When your Lead Trader opens a long position, you will counter with a short position.
One-click copy
The one-click copy option provides you with a quick and simple way to start copying.
This copy trading mode is set as a fixed ratio method by default. Your copied position will open and close at a fixed ratio based on (Open: your available funds / Lead Trader’s available funds; Close: the percentage of the position). In other words, your copied portfolio ratio will stay similar to the Lead Trader’s portfolio ratio.
Risk management
Even though WOO X tries to identify and promote highly-experienced Lead Traders, due to the nature of the crypto market and its high volatility, it is always best to keep risk control in mind. We recommend the following principles for proper risk management that will help you secure your assets when facing adverse market conditions.
Invest What You Can Afford to Lose
We recommend that you invest only the amount of money that you are willing to lose. These funds should not come from any personal loans that may affect your daily life.
Doing your own research and learning from experience will help increase your chances of being profitable.
You will be able to adjust your invested amount even after you start copying. Adjusting the invested amount will not change the notional size of the current copied positions and will only affect your subsequent copied positions in fixed ratio mode, since the amount of funds available will have changed. Decreasing the invested amount will affect your margin ratio and may cause liquidation if there are any open leveraged positions.
WOO Shield
Total stop loss
The total stop loss helps you to manage your funds while you’re not looking. It’s a setting that closes all your copied positions and stops copying once you lose a certain percentage of funds.
For example, if a user has invested 100 USDT with a 70% stop loss limit, the funds will settle and the account will stop copying the Lead Trader strategy once the total lose reaches 70 USDT. If the user deposits another 100 USDT (making the total invested amount 200 USDT), the stop loss target will become 140 USDT. On the other hand, if the user withdraws 50 USDT from the initial 100 USDT, the stop loss target will become 35 USDT.
Slippage tolerance
By default, Copiers will use market orders to copy trades whenever the Lead Trader’s open orders get filled or partially filled, if the slippage tolerance setting is not set by the user. This means that Copiers may experience a slightly worse average price execution as compared to the Lead Trader’s average entry price. entry price.
The slippage tolerance setting helps to protect the Copier when the market is volatile and will only execute their trade with IOC orders when opening a new position.
※ Note: when closing a position, Copiers will always use market orders to execute the copy trade to ensure that the position is closed accordingly.
For example, if a Copier’s slippage tolerance setting is set at 1% and the Lead Trader opens a long position of 1 BTC with a price of 60,000 USDT. The Copier’s average order price will only be equal to or better than 60,600 USDT, which means that the order might be only partially filled or canceled if the price gets higher before the order is fully filled.
How to read the Social Trading dashboard?
You can monitor the overall performance of your copied strategies on the Social Trading dashboard. Click on the dashboard to access more detailed information.
You can find all your copied Lead Trader strategies here.
Click on any one of the strategies to view its details. To view your past copied strategies, click on ‘Copy history’.
On this page, you can observe the various performance metrics of the selected strategy, the current portfolio composition, order history, and profit share history.
You can also adjust your investment amount with the ‘Adjust investment’ button at the bottom of the page, or stop copying by clicking on the stop icon in the top right-hand corner.
When will the copy stop?
There are a few scenarios that will terminate a Copier’s copy trading and close all copied positions:
- Manually stop copy
- Lead Trader gets liquidated
- Copier gets liquidated
- Total stop loss is triggered
How does profit sharing work?
Profit sharing on WOO X Social Trading is designed to be mutually beneficial. This means that Copiers will only share profits to the Lead Traders when they successfully earn profits based on the Lead Trader’s strategy.
High watermark mechanism
WOO X Social Trading employs a high-water mark mechanism in determining the amount of profit that is shared.
The “High-water mark” refers to the highest total profits* gained within the Copier’s Social Trading portfolio at each time of settlement. After the profits from the Copier have been shared with the Lead Traders, WOO X continues to record the portfolio’s highest total profits gained as the high-water mark. During the next settlement period, Copiers will only share profits** with the Lead Trader if their total profit has exceeded the previous high-water marks.
*Total profits = Portfolio value + withdrawals - deposits + previous profit share amount
**Profit share amount = (Current total profit - previous high-water mark) * profit share ratio
Example:
A Copier starts with a 100 USDT investment in a Lead Trader strategy, and the Lead Trader’s profit share ratio for that strategy is set at 10%.
During the first profit sharing settlement period, the Copier’s balance in the strategy has increased to 300 USDT, recording the high-water mark as 200 USDT. As it is the first settlement, the previous high-water mark will be 0 USDT. The Lead Trader will gain a profit share of 10% from the current total profit: (200 - 0) * 10% = 20 USDT, and the copy balance will then become 280 USDT after the settlement has been completed.
During the second settlement, the Copier’s balance drops to 100 USDT, recording the total profits as 20 USDT. Since the current total profit is lower than the previous recorded high-water mark, no further profits will be shared with the Lead Trader.
During the third settlement, the Copier’s balance has increased to 180 USDT, recording the current total profit as 100 USDT. Since 100 USDT is still lower than the previous high-water mark of 200 USDT recorded in the first settlement, no further profits will be shared with the Lead Trader.
During the fourth settlement, the Copier’s current balance has increased to 380 USDT, recording the current total profit as 300 USDT. The Lead Trader will gain additional profit sharing, since the high-water mark of 300 USDT is now higher than the previously recorded high-water mark of 200 USDT. The formula to calculate the amount of profits shared will be:
- (current total profit - previous high-water mark) * profit share ratio = (300 - 200) * 10% = 10 USDT
After the settlement, the high-water mark will be updated to 300 USDT, and the Copier’s balance will become 370 USDT.
When does the profit sharing settlement occur?
The regular profit sharing settlement occurs daily at 00:00 UTC, or when the Copiers stop copying.
Will Copier’s own positions be affected by Social Trading?
No, all of the Copier’s social trading positions are separated from their regular trading account.
A separate virtual account will be created for each strategy. These virtual accounts are segregated from each other and the Copier’s main account or other regular subaccounts. For example, PnL, margin ratio, or liquidation are tracked separately. What happens in one virtual account won't impact the others.
After the Copier starts copying a new strategy, a virtual account will be created and the Copier’s initial investment amount will be transferred from their main account to the virtual account.
※ Note: Please be aware that when initiating a new copy or depositing assets into a Lead Trader strategy, the invested amount will be deducted from the main account. If you have leveraged positions, your main account's collateral and margin ratio will decrease when the investment funds are transferred.