Yeah I agree, a long and successful track record suggests consistency in a highly volatile market. It is said that every three years, market volatility, trend, and cyclic change and if a trader can still earn a consistent profit, it is a wise decision to copy trades.
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New investors can greatly benefit from copying more experienced tradersā trades, especially if theyāre completely new to the market. You can also split your funds among multiple top traders. For instance, you might decide to split your portfolio between a low-risk/high-reward trader and a high-risk/high-reward trader.
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After reading this thread, got some of my doubts cleared, I am planning to give copytrading a try. But I want to get clarity on a few more things before making the final decision:
- Do I need to pay anything to copy another traders? If yes, how much?
- Is it really worth it for beginners like me?
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I tried it in the past, but didnāt have much successā¦ Maybe I followed the wrong dudes
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I used FXstat and Hotforex PAMM accounts, what I can say is that you still need to spend some time to assess performance, risk profile of a PAMM manager, get rough understanding what type strategy he uses, etc. in order to construct diversified portfolio of investments. However I prefer to trade myself because I feel long-term rewards from this approach are higher.
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Hmm, can be. Where did you start before? With Zulutrade I know they have a list sorted for top traders, even eToro I think.
Thinking of going in again?
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Different platforms have different requirements. On some platforms, you donāt have to pay anything to copy the trades, the trade will automatically be placed in your account once you follow a trader.
On the other hand, there are some, where you have to pay a fixed fee per trade.
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How can a beginner investor like me benefit from copy trading?
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@Tretrader_1 Basically if you donāt have the kind of knowledge thatās needed to make successful or profitable trades in the market, you still have higher odds of winning if you are replicating the trading action of any top trader compared to the beginner who is trying to do it on his own. These copy trading platforms like zulutrade, etoro, naga have some of the best traders with pretty good track records, so by copying their trades, you get an opportunity to use their trading skills to make profits for yourself.
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Copy Trading allows you to invest with limited market knowledge and experience. As a beginner, you can also start trading on a demo account and learn how copy trading works, without facing the risks associated with the real market.
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Yes exactly! And some platforms like Zulutrade and eToro even provide the option of interacting with each other.
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Is it true that traders with the highest ROI are the most profitable? Or are there any other options that should also be looked into?
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Imo, you should not only look for ROI but other aspects as well like:
- maximum open trades, maximum drawdown and winning trades.
- copy those traders who have at least 6 months of trading history on the platform because the older the traderās account, the better.
- risk level of a trader should resonate with your risk appetite so that you donāt lose more than you can afford in case of any unfavourable circumstance.
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Thanks for sharing your useful insights. I will definitely consider these factors before choosing a trader to copy trades. Do you have any other tips regarding copy trading?
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You should always keep in mind that even the pros can have a bad day and may suffer losses. And thatās okay! Think of it as a chance to learn and improve. Iād love to hear how it goes when you give it a try. 
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Copy trading looks a good choice if you accept the following as facts -
- as a new trader I must invent my own strategy in order to be profitable
- strategies that generate trade signals are too complex to replicate so I must just passively accept the signals it produces
But these things are not true.
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No copy trading is not valid unless you are very lucky, their strategies martingale and when it blows up they create a new strategy/account, if you go to Quora and use this Are-hedge-fund-managers-actually-intelligent/answer/Alister-A you will see something I wrote about that on Collective2. I have access to institutional fintech with stock research and analysis, copy traders will have none of this so what you will find is that if they target above 3-5% and 7-10% pa (per year), they will implode as the markets make it a foregone conclusion.
There is something else I wrote, provided to me by fund managers, that unless you can protect 80% of your profits you will not just lose your profits but will also expose your underlying capital to the markets, this is something you truly do not want to do as mrkets are experts and it changing hands, yours to theirs.
If you could time entry and exit in to the strategy then it could work, but you will not be able to do this except via luck as even the best economists and fund managers cannot exactly time exit, they can only time a range which is too wide to guard the profits if you over extend the returns profile, and therefore expose the capital without the tools or experience, something copy traders do not have.
The companies I know have strategies coming out of their ears, they asked me to talk to these copy trade platforms for things like Ultra Wealth ETF, Digital ETF, managed funds, assets which float like currencies, ICOs which they have 100s of, if you take Collective2 they only have 2,500 active people buying strategies averaging $100/mth for a strategy, making $250,000/mth in revenue split 50% for the strategy developer across ALL strategies on their site.
Statistically you will always get someone getting it right, for some time, but I can assure you none of them can guard 80% of profits over the medium to long term, so unless you exit while the going is good you will experience the massive drawdown, if you exit precisely enough when that happens you will breakeven, if you hesitate which is what everyone does it will evaporate capital, but this is what the markets were designed to do.
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Hey there! Iāve been doing well with trading and now Iām interested in sharing my trades on a copy trading platform to earn some extra bucks 
.
Just wanted to make sure I know what I can do and what the rules are. So, are there any restrictions for traders in terms of the instruments or markets they want to trade on?
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Restrictions vary from platform to platform. For example, in platforms like zulutrade and pelican, you have the flexibility to select a broker of your choice and trade in instruments or markets provided by that broker. On the other hand, there are some brokers like etoro and naga who offer copy trading but they do not give you the leverage to select any broker of your choice. In this case, you have to trade in only those assets that they are providing.
So, itās important to carefully review the terms and conditions of the copy trading platform you are considering to ensure that you understand the restrictions and can go ahead with them.
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I already have a trading account with my broker. Can I just connect it with zulutrade or do I have to open a new account?
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