Reliable statistics: Check that the presented statistics are based on real and verifiable results, avoiding scams, optimized backtests or systems that do not reflect the reality of the results of a strategy on a real account.
Real account results: Make sure that the results shown by the strategy are coming from a real account, as impressive results obtained on demo accounts may not reflect real market conditions.
Verified brokers: Before choosing a Copytrader strategy , research the reputation and reviews of the broker or platform used. Consulting review sites such as ReclameAqui (in Brazil) or Trustpilot (outside Brazil) can provide valuable insights into the broker’s reliability and performance.
Minimum 1 year of positive activity: Ensure that the chosen strategy has at least one year of positive activity, with a track record of consistently profitable results. This demonstrates that the strategy is capable of handling different market conditions over time.
Average monthly/annual profitability: In addition to analyzing the strategy’s rate of return, calculate the average monthly or annual profitability to get a more accurate sense of expected performance over time. A strategy with stable and consistent returns is generally preferable to a strategy with volatile results.
Beware of Greed: Be aware that extremely high monthly results may not be sustainable in the long term. Strategies that promise monthly returns greater than 20% should be analyzed with caution, as they may be the result of temporary luck or specific adaptation to the market.
Trading style: Check the trading style adopted by the Copytrader strategy . Evaluate whether the strategy uses increased positions (scaling) and what is the maximum percentage loss value allowed in a single operation. An aggressive trading style can involve significant risk, so limit the maximum percentage loss value to 5% or 10%.
Be prudent: When starting to invest in a Copytrader strategy , avoid investing large amounts of money right away. Start with as little as possible to test the strategy and understand its performance on your own account. For example, FortunaDozer allows an initial investment of just $50, giving you the opportunity to test the strategy before increasing investments.
Net profitability: Consider the net profitability of the strategy, taking into account the associated costs. Check the average monthly income and calculate how much you would need to invest to cover these costs. Look for strategies that offer the option to activate the copy by paying a fee or commission on profits, rather than incurring fixed costs.
Copytrader Matching : After activating the Copytrader strategy , check that the results obtained by the strategy or robot are in line with the results on your own account. Some variation is acceptable, but a significant difference could indicate problems or inconsistencies in copying operations. Make sure that the variation does not exceed a reasonable limit, avoiding cases where the difference is greater than 50%.
Investing in Copytrader strategies can be an effective way to leverage the knowledge and skills of experienced traders. However, it is crucial to follow these 10 commandments to ensure that you are choosing a reliable strategy that fits your investor profile.
By analyzing statistics, real account results and the reputation of brokers, you will be protecting yourself against possible scams and ensuring that you are dealing with real and verifiable data. Also, by choosing a strategy with at least one year of positive activity and consistent average profitability, you will be increasing your chances of achieving sustainable long-term returns.
It is important to remember that greed must be controlled. While it’s tempting to pursue strategies with exceptionally high monthly returns, it’s essential to consider the stability and consistency of those returns over time. Evaluating the trading style adopted by the strategy, such as increasing positions and the maximum allowable loss amount, will help to assess the risk involved.
When starting your investments in a Copytrader strategy , be prudent and start with minimum amounts to test the strategy on your own account. This will allow you to evaluate your performance and familiarize yourself with the strategy before increasing your investments.
Also, consider not only the rate of return, but also the net profitability of the strategy. Consider the associated costs and opt for strategies that offer the option of paying a fee or commission on profits, rather than fixed costs.
Finally, make sure the results obtained by the strategy or robot are in line with the results in your own account after activating Copytrader . A reasonable variance is acceptable, but a difference that is too high may indicate problems in executing the operations.
By following these 10 Commandments for Choosing a Copytrader Strategy , you’ll be better equipped to make informed decisions and maximize your chances of success. Remember that research, analysis and prudence are key when entering the world of Copytrading .