Here are the 10 commandments for choosing a Copytrader strategy:

  1. Reliable statistics: The vast majority of presented results are scams, optimized backtests, or systems that do not reflect the real results of a robot or strategy in a live account.
  2. Verify if the results are from a real account: Impressive results can be achieved in demo accounts, but they often don’t translate well into real accounts due to slippage and other factors.
  3. Verify verified brokers on Copytrader: Check the broker/platform ratings on sites like ReclameAqui (in Brazil), Trustpilot (outside Brazil), and international regulations such as the Australian Securities and Investments Commission (ASIC), FCA in the UK, among others.
  4. Minimum 1 year of positive activity for the strategy: Check if the strategy has withstood at least one major crisis (e.g., the Subprime crisis in 2008, the COVID-19 pandemic, the Ukrainian War in 2022).
  5. Calculate the average monthly/annual profitability: Percentage of the strategy’s return (at least 2% per month).
  6. Greed has limits! Strategies with monthly returns higher than 20% rarely last long. It’s not beneficial to double or triple your capital in one month and lose everything the next month. Strategies with monthly returns exceeding 20% may be attributed to luck or a specific market adaptation period. A minimum evaluation period of 6 months is recommended. Also, make sure the drawdown was not too high (ideally less than 30%, as more than 60% is not feasible).
  7. Verify the Copytrader‘s trading style: Position scaling and the maximum percentage loss per trade (ideally not exceeding 5% / 10%).
  8. Be prudent! Never start with high amounts—begin with the minimum possible to test the strategy. (Check FortunaDozer, where the initial investment is only $50).
  9. Check net profitability: Determine the average monthly return and how much is needed 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 match: Slippage: After activation, verify if the results of the copytrader strategy/robot are similar to the results in your account. Some variation is acceptable, but not excessively high. I’ve seen cases where the variation exceeds 50%.