Copy Trading Strategy

The Copy Trading strategy identifies successful traders ("whales") and mirrors their trades proportionally.

How It Works

1. Identify whales - Find wallets with large balances and good track records
2. Monitor activity - Watch for new trades from tracked wallets
3. Mirror trades - Execute similar trades at a configured proportion
4. Follow exits - Close positions when whale exits

Example

Tracked whale: 0xabc...
Whale balance: $500,000
Your allocation: 1% of whale size

Whale buys:
- $10,000 of YES on "Will X happen?"

Your trade:
- $100 of YES (1% of $10,000)

Configuration

# Minimum wallet balance to track (filters out small traders)
COPY_TRADE_MIN_WHALE_BALANCE=100000

# Proportion of whale trade to copy
COPY_TRADE_PROPORTIONAL_SIZE=0.01

Risk Level

Medium - Your success depends on whale selection.

Risks: - Whale may have different risk tolerance - Execution delay (you trade after whale) - Whale may have information you don't - Whale strategy may not scale to smaller sizes

Finding Good Whales

Look for wallets with: - Consistent profitability over time - Reasonable position sizes (not all-in bets) - Diverse market selection - Good timing (not just lucky on one event)

Whale Database

PolyBot tracks whale wallets in the database:

# View tracked whales
polybot whales list

# Add a whale to track
polybot whales add 0xabc...

# Remove a whale
polybot whales remove 0xabc...

# Show whale performance
polybot whales stats 0xabc...

CLI Commands

# Enable the strategy
polybot strategy enable copy_trade

# Run in shadow mode to test
polybot strategy shadow copy_trade --enable

# View recent whale activity
polybot whales activity

Best Practices

1. Diversify whales - Don't copy just one trader
2. Verify track record - Check historical performance
3. Use small proportions - Start at 0.5-1%
4. Monitor actively - Whales can change strategies
5. Set position limits - Don't overexpose to any single whale