Portfolio Diversification for Copy Trading
Following a single trader puts all your risk in one place. Here is how to diversify smartly.
Why Diversify?
- If one trader has a bad week, others can offset losses
- Different traders excel in different markets (sports, crypto, politics)
- Reduces the impact of any single bad trade
Sample Portfolio Allocation
| Portion | Strategy | Allocation Mode | Example |
|---|---|---|---|
| 40% | Conservative trader (high win rate) | Range ($5-$15) | Steady small wins |
| 40% | Moderate trader (balanced P&L) | Range ($5-$20) | Medium risk/reward |
| 20% | Aggressive trader (high P&L, lower win rate) | Fixed $5 | Big potential upside |
Watch for Correlation
If two traders both bet heavily on NBA games, you are doubling your exposure to basketball outcomes. Try to pick traders who focus on different markets.
Start Small, Scale Up
- Begin with $100-250 split across 2-3 traders
- Use Range mode to control min/max per trade
- Evaluate after 2 weeks of data
- Increase allocation to winning strategies gradually