(0.00 %)

  • Total Return YTD

    Daily change

    +43.58 %

    (+1.24 %)

  • Total Return YTD

    Daily change

    +19.04 %

    (+1.21 %)

  • Total Return YTD

    Daily change

    +19.10 %

    (+1.31 %)

  • Total Return YTD

    Daily change

    +11.93 %

    (+1.45 %)

  • Total Return YTD

    Daily change

    +6.46 %

    (+1.05 %)

  • Total Return YTD

    Daily change

    +11.38 %

    (+1.28 %)

  • Total Return YTD

    Daily change

    +7.84 %

    (+0.60 %)

  • Total Return YTD

    Daily change

    +20.35 %

    (+1.76 %)

  • Total Return YTD

    Daily change

    +7.73 %

    (+1.39 %)

  • Total Return YTD

    Daily change

    +14.74 %

    (+1.22 %)


Starting Copy Trading: What You Need To Know

The Idea Of Copy Trading

Imagine there is a successful trader. He has an account accomplishing successful activities, which gives him major profit. Now imagine there is a person who wants to have the same success, so they are replicating those trading activities in the account of a trader. You copy the trading activities of this successful trader and use them in your account.

If you are copying the activities of a trader, you may get the same results. It’s possible since all the positions that are opened for that trader, are open for the one who is copying the trades. As a result, the beginner doesn’t have to be a knowledgeable and experienced trader to use this strategy and gain solid passive profit. On the other hand, if you copy non-successful activities, you will face losses.

How To Start?

There are two important things to note before you go into copy trading:

1. Choosing a good trader and we recommend as tool for traders’ selection.  

2. Choosing a good platform.  The leader in copy trading is Etoro and platform has all features to make copy trading successful. 

The first factor means that you get the profit. If you copy the activities of an unsuccessful trader, you get losses. And a good platform will make sure that all your wins and gains are in good hands.

Facts To Keep In Mind

When you choose trader or traders to copy their activities, and the platform to keep your funds, here is what to keep in mind:

  • Keep monitoring your gains and losses, especially if you have several traders that you copy. If you see unprofitable copying, you can quickly adjust your activities.

  • Make sure to choose a broker company that allows you to withdraw funds at any time so you can prevent your losses.

  • Choose the best trader that you can find, but keep monitoring your results. Some very successful traders may take risky paths, and as a result, bring you huge wins or big losses.

How To Choose A Platform?

You can choose from two different types of broker companies:

1. Companies that have their own copy trading systems.

2. Companies that have external sources offered to their customers.

In the first case, all a future copy trader needs to do is to sign up and choose successful traders. The in-built system has all the required tools to analyze the activities of traders, copy them, and use them to the trader's advantage. It's a 1-in-everything deal, which makes it easier to begin. 

In the second case, you get access to a larger pool of traders who you can copy. The company connects its clients to traders through external links. In this case, it is easier to identify the best performing traders, and you get to choose from more options than in the first case.

Choosing A Trader

Be on alert when choosing a trader since your decisions affect your outcomes. Here are several tips that will help you to choose a successful trader to copy:

  • Seek those who've been trading on a platform for a couple of past months. Several wins over a couple of weeks don't tell you anything, while a longer period of success hints that the trader knows what they are doing. For as instance the threshold to be included in ranking list of the best copy traders is 3 years.  

  • Look at the number of open trades left. Some might be misleading since a lot of platforms reward traders with higher numbers of copiers. This is why traders are interested in presenting themselves better than they might be in reality.

Pay attention to the following information about the trader:

  • His return of investment over the year is equal to or higher than 50%.

  • Low-risk ratios – Sortino and Sharp ratio above 1.

  • Pretty high amount of managed assets. 

  • The drawdown is not higher than 30%.

  • Trades regularly.

  • The profit to loss ratio is >60%. 

  • The trader you choose should also be compatible with your objectives

The Final Thoughts

Be careful when choosing traders to start copying activities. Keep monitoring all your investments to be able to adjust your strategy. Choose platforms that are flexible enough to let you quickly adjust the strategy to not face major losses. The Etoro trading platform is the most optimal for efficient copy trading, and it will combine all the best systems for assessing the effectiveness of a trader. For Etoro, there are additional ecosystems that increase the reliability of copy trading and facilitate the choice of traders. One of these systems is - a site that acts as a platform for rating the best Etoro traders and systematic assessment of their portfolios and analysis of trading decisions. The chance to make successful copy trading as a form of passive investing can be significantly increased with the application of

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high  risk of losing your money.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.