TL;DR
- Learn the style of the original wallet (their token style, the entry/exit price,…)
- Settings Minimum Market Cap: 5M
- Settings Minimum Jupiter Organic Score: 50
- Copy wallet that have avg position age > 20 mins (0.3hrs)
- Set Stop loss at 15%
- Start small, increase when you feel confidence
Key Success Factors
1. Research Token Preferences
Token selection has a huge impact on profitability. Before copying any wallet, conduct quick research on their trading style:- Small Cap vs Big Cap: Analyze whether the original wallet typically invests in small-cap tokens (higher risk/reward) or big-cap tokens (more stable)
- Market Focus: Determine if they focus on specific sectors or trade across various token categories
2. Implement Risk Management
There are always opportunities, so protect your capital first. Setting proper safeguards is crucial:Essential Safety Measures:
- Rug Check: Always enable rug pull protection to avoid honeypot tokens
- Minimum Market Cap: 3M minimum market cap
- Jupiter Organic Score: 50 or higher
3. Analyze Trading Patterns
Position timing significantly affects Copy LP performance. Study the original LP’s behavior:- Entry Speed: Some traders “ape in” and exit very quickly, causing lag issues for copy trading
- Position Duration: Look for traders who typically hold positions for 20+ minutes
4. Use Stop Loss Protection
Stop Loss (SL) is an excellent way to protect your capital: I usually set it as 15%5. Start Small and Scale Gradually
Begin with minimal capital and increase as you gain confidence: Recommended Approach:- Testing Phase: Start with 1-5% of your intended investment
- Learning Phase: Copy for 1-2 weeks to understand the wallet’s patterns
- Optimization Phase: Fine-tune settings based on performance data
Common Mistakes to Avoid
- Copying without research: Never blindly copy a wallet based on recent performance alone
- Ignoring risk settings: Always prioritize capital protection over potential gains
- Starting too large: Resist the urge to deploy significant capital immediately
- Not monitoring performance: Regularly review and adjust your Copy LP strategies
- Chasing quick gains: Focus on consistent, long-term profitability