How-to profit from copy trading


Have you ever wonder why you or other people lose money from copying profitable signal? Here’s a few tips to make profit from copying profitable trade signal

  1. Pip distance: apart from choosing signal that has consistance growth you need to see if the pip distance of the win trades are high enough to compensate the slippage/commission/spreads.

  2. Signal age and consistancy: Signal should at least have 1 year history of live trading, and the strategy of these trade should be consistance. You can check if the position size/pip distance of closed trades in the trade history if they are consistance.

  3. Calculate your risk and stick with it: Many people follow “Long Term Signal” unprepared. They start following with high multiplies/risk usually when the signal is at its all time high, and reduce the risk/multiplies when losses occurs. Once the signal started to recover, they increase the risk/multiplies again. That means they take full losses and only received partial recovery. You should pick the risk that you are comfortable with and stick with it. Do not follow a signal that you are not comfortable in the 1st place.

  4. Diversify: don’t put all your eggs in the same basket, pick multiple signals with different strategies. Each strategy will enter profitable and drawdown phase in different time, this will help grow your portfolio consistantly. Also, allocate only 50-75% of your fund for trading, you will appreciate this tactics on the rare occation that all/most of the signal enters drawdown in the same time.