I believe it does. Social trading is still going to become big…and systems will improve over time to come.
There are several ways to copy trades. Some brokers offer direct copy accounts(look at Roboforex) where you can open a copy account and trades get passed to your account directly…like an anonymous PAM/MAM setup. I haven’t tested it but see no reason why it will not be successful.
The system type and order processing is critical. If you have a scalper that takes 1 or pips profit using market orders, then it will not be suitable for copying
Here is an example…at the risk of breaking the forum rules here(mods, this does go directly to the subject matter)…I am running a little experiment on an EA that I created that I believe is very well suited to copy trading
Here is a link to myfxbook master account :-
CF_Trend V1.5 beta System by compuforexpamm | Myfxbook
Here is where I am copying my own account :-
Signal copy test System by compuforexpamm | Myfxbook
As a matter of interest, the copy account is not the same broker as the master, which is not ideal, but you can see it is ok…
Here I have a friend who is running a copy but with the same broker…
FP-Market signals System by Stoneydxb | Myfxbook
A couple of points to note, this system uses stop orders and TP/SL to exit trades…no market orders.
It is a demo account but I believe it will work just as well with a live account and I will prove this in the coming months.
The signal slippage on this system is insignificant. Slippage from you broker would be a different story but if you are with the same broker as the master account you should not have to worry.
The system uses the metaquotes(MQL4.com) website as a signal service.
When you look at the system, note things like the average win/loss per trade(pips). You will see that the more pips average, the more suited the system will be for copying.
The final and best form of social trading is to find a decent trader who runs a PAM/MAM setup with a reputable broker.
A final word, the copying/technical aspects can work, but no matter how good the copying is, if you choose a bad trader to copy you are going to lose. Therefore, choice of trader is the most critical aspect of social trading. Learn to identify what kinds of trading will blow your account(martingale, high risk, etc).