top of page

Copy Trade: Follow Experts with EA Robots or Successful Manual Strategies

Updated: Dec 25, 2024

Copy trading allows individuals to replicate the trading strategies of experts, either those using automated EA (Expert Advisor) robots or manual strategies. Here’s a guide to help you navigate the world of copy trading effectively and safely.


Contact Us to follow our strategy accounts
Contact Us to follow our strategy accounts

The Simplicity of Copy Trading

One of the key advantages of copy trading is its ease of use. You can assess the performance history of potential accounts to follow. Here are some tips:

Evaluate Trading History

  • Look at the Account’s Longevity: The longer the history you can review, the more reliable the copy account may be. Accounts with a proven track record over time are less likely to encounter unexpected risks.

  • Be Wary of New Accounts: Newly established accounts are inherently riskier since their drawdown levels and sustainability are not yet proven.

Save Time with Copy Trading

Copy trading allows you to save valuable time. While you focus on your daily activities, your chosen expert or EA robot works for you in the background.

Understand the Strategy

Before copying an account, determine whether it employs manual trading or an EA robot. Some platforms explicitly indicate the trading method used by the account manager. Understanding this helps align your expectations and strategy preferences.

Manage Your Risk

Match Your Investment to the Manager’s Balance

Pay close attention to the balance of the copy manager’s account:

  • For example, If the manager’s account balance is $100, avoid investing significantly more.

  • A manager with a small balance is likely taking higher risks, and over-investing can amplify those risks for you.

Mind Minimum Deposits

Even if the platform allows a minimum deposit of $25, avoid investing much less than the manager’s balance. This is because trading systems usually cannot open positions below a 0.01 lot size. If your capital is too low, your account might not withstand the trades, leading to potential losses, even if the manager’s account remains profitable.

Withdrawal Timing

If the manager withdraws funds from their account, consider doing the same. This ensures your account remains proportionally aligned and minimizes risk in volatile market conditions. Ignoring this step can lead to rapid and unpredictable growth in both profits and losses.

Understand Copy Trading Costs

Copy managers typically earn commissions based on the profits they generate for followers. These commissions range from 10% to 50%. Ideally, aim for managers who charge commissions of 25% or less to maximize your returns.

Recommended Platforms for Free Copy Trading

Here are some platforms where you can copy trade without additional costs:

  1. HFM

  2. XM

  3. LiteFinance

  4. PuPrime

By carefully evaluating these aspects, you can enhance your copy trading experience and potentially achieve consistent returns while minimizing risks. Remember, due diligence and a solid understanding of the process are key to successful copy trading.

Comments


bottom of page