Copytrader: 10 commandments for choosing a copytrader strategy

  1. Reliable statistics in Copytrader The vast majority of presented results are scams, optimized backtests, or systems that do not represent the reality of a robot or strategy’s results in real copytrader accounts.
  2. Verify if the results are from real copytrader accounts. Impressive results are often achieved in demo accounts, but that doesn’t hold much relevance as it may not be feasible to replicate those results in real copytrader accounts due to slippage and other factors.
  3. Verified brokers in Copytrader – Check the broker/platform reviews on websites like ReclameAqui (in Brazil), Trustpilot (outside Brazil), and international regulations such as the Australian Securities and Investments Commission (ASIC) and the FCA in the UK, among others.
  4. Minimum 1 year of positive activity from the copytrader strategy. Check if the strategy has withstood at least one major crisis (Subprime 2008, Pandemic, Ukrainian War 2022) in copytrader.
  5. Calculate the average monthly/annual profitability percentage of the copytrader strategy (at least 2% monthly returns).
  6. Greed has limits! Strategies with monthly returns exceeding 20% rarely last long in copytrader. Doubling or tripling your capital in one month and losing it all the next month is of no use. Strategies with monthly returns higher than 20% may be mere luck or a period where the strategy adapts to the copytrader market. The minimum evaluation period for a strategy is 6 months. Also, ensure that the drawdown was not too high (more than 60% is unfeasible; ideally, it should be below 30%).
  7. Verify the trading style of copytrader operations. Consider the increase in positions and the maximum percentage loss per trade (ideally, not exceeding 5% / 10%).
  8. Be cautious! Never start with high amounts – begin the copytrader strategy with the minimum possible to test it (check out FortunaDozer, which has an initial investment of only $50).
  9. Check the net profitability of copytrader. Determine the average monthly return and calculate the necessary investment to cover costs (look for strategies where you can activate them by paying a fee, meaning you have no upfront costs, only a commission on profits).
  10. Copytrader correspondence – Slippage. After activation, verify if the strategy/robot’s results in copytrader are similar to the results in your account. Some variation is acceptable, but it should not be too high. There have been cases where the variation exceeds 50% in copytrader.