why I think copy trading won't scale over the long run

below post is from a very good trader I follow

building @revealcam @alfaca @offmarket @perl | alum South Park Commons | previously cofounder SBLY.com, eng at Stripe | peter-kim.com

terminally /hyped. also /powerfeed and /faristocats

ah I was referring more to people front running your copy trade with their own copy trade, not front running the transaction like mev bots typically do

afaik there’s no frontrunning possible on base since there’s no MEV here (but i might be wrong lol)

Operator turned investor. Work in TradFi. Exploring the future of social investing @crossroads.  🟪

other people or bots watching the same wallet will front run then dump on you

can work if you’re planning on long term holding, but that conviction comes from forming your own thesis (which can come from people shilling), not copying someone’s trade without any context behind it

just my opinion

If people are copytrading based on the contents of their wallets, then how is there risk of being front run?

I think it’s understandable from a data perspective but this is no different than what already exist in dark money pools. It’s elite stuff, works, for small number of people.

And in the long term, much more traders and coins will make it obsolete

lessoninthere

good opsec but very painful, any tips to share on wallet and opsec management?

Copy trading isn't bad entirely, it will be too bad when one doesn't want to put in the work on their own.

If I am watching a wallet, I am only doing that to get insight into what the more advanced traders are bidding, then I will do my assignment to know their thesis on the play.

Thanks for this insight Peter, was never a fan of copytrading and this reinforced my conviction against it

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yeah better to analyze people’s calls and make your own decisions

Your absolutely right about this. Always be a winner and a loser, unfortunately.