🎯Copytrading
TESTING
After you found a potential good wallet or a list of wallets you can start testing them. Testing phase its not meant to make money, its just the next step before really starting real copytrading. You will be able to figure it out what fees you need for that particular wallet, if there are other competitors and most important, if the wallet is copiable on the long run
We suggest creating new empty wallet whenever you start testing a new wallet, this way you will be able to track transactions more easily when you will need to fill in the testing sheet. Start with small balances like 0.01-0.05 SOL per trade, for few transactions, and study the PNL differences between you and your target wallet.
❗️ If differences are too big and the ratio between target wallet buys and liquidity is decent, its probably because your wallet is trading volatile tokens or there are other wallets copying it with more performant bots of just higher fees/tips. At this moment, you can check on Photon/GMGN if there are competitors and what bots/fees are using and based on this increase fees
If everything is good you can slowly scale up your position size (depending on your risk tolerance and SOL balance). Test the wallet for a while, if results are good (maybe your wallet will stay at breakeven but considering trade size, you are probably not making money because of the fees. Now its time to find out if fees are the reason, or simply the wallet is not copiable.
To figure out this aspect, you need to use the testing template. This template will calculate the projection and basically simulate the transactions you had but with higher SOL amount. Moreover, you will know what profits you will have with a certain buy amount you plan to use, and also calculate the average performance per day. Use the following excel file and the instructions:
HOW TO USE
You just paste your data in columns B, C, D, E. Also, in the outcome boxes you need to imput your start and stop days so the sheet can determine the timespan you traded and calculate the daily performance.
After you put all your data in the columns i just mentioned, you just select columns E-H and drag down clicking on the corner of selection, until the last row with buys and sells completed by you. Repeat this process for columns K-N.
If you are happy with the performance, its time to scale up, considered you already tested the system. Increase your buy amount gradually, avoinf increasing too much after winning streaks because you will hit drawdown at some point, wiping you profits made in the small buy phase. You can keep using the testing sheet even after testing is finished, to calculate performance on every trading day.
Then, you can proceed with imputing your profits in the wallet balance sheet, where you will be able to track the daily profits and cumulative value. Create separate sheet for every wallet you copy, this way you will be able to observe changes on each wallet performance, and help you decide easier and more accurate if the wallet worths copying anymore or not
❗️ After you set up your copytrading bot, join Solana Ray Blue bot on telegram, set up the wallet you track there to receive notifications when he makes any transaction. Also, import your wallet into Solflare and Phantom to be able to sell manually if bot fucks up. Keep an eye Solana Ray Blue bot to see if your target wallet sells and your bot doesn't.
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