How healthy is copy trade?

[JeffBrad12]

Copy trade is good until the trader become shit at predicting and you suffered loss as much as them. There is also possibility that they are opening a hedge position against their own trade, making the copiers in loss while they are reaping the profit.
It's not very recommended and that is why we recommend you to trade by your own, doing your own analysis, etc.

I've personally seen plenty of traders that went from huge profit to absolute loss on the copy trading section.

[LogitechMouse]

I had a friend who discovered a channel on social media and since he has been on.my neck to check it out how it works, thus, I am not that a fan of copy trade or even trade above spots trading talk less of copy trading someone's trade.

Why doesn't he learn how to trade himself? I think it's better to at least try and if he's not good at it, then he can copy trade.

One of the main reasons why is because they don't want to learn it, but they want to earn money thru trading hence, they just copy successful traders hoping that they will make money as well without doing anything, and while it could be profitable to you, there will always a chance that it might be not. In fact, there's a higher chance that you will not make money in the end by just copying other traders.

If he's not good at it, he needs to learn it, and not copy-trade. Copytrading is for the lazy and for those who are afraid to lose their money because their newbies. Yes, I've tried copytrading in the past, and there were times where I made money, but for the majority of the time, I lost.

From my past experience of copy trading, last year was my last try to copy trade, like I tested 5 master traders, and let's say 1,000 USDT each, only 1 became profitable, and I still have losses.
So, you don't need to have the same amount as the master trader; most platforms now, as exchanges have already advanced features like stop losses, or percentage trade size, depend on the master trader you are copying.

The only challenge here is to find a good master trader to copy.

Even if you find a GOOD master trader to copy, the chances of you losing money is still high, and you might still end up losing your money.

At least that's what I've experienced. I tried to copy this one successful trader, an in my first try, I doubled my money just by copying his trades. I pulled out my money after that, didn't copy him for months, then decided to copy him again, but after a few weeks, my initial capital was cut into half (because that's my risk that I entered), and I decided to stop copying him. Waited for few months, copied him again, but this time I didn't put a risk limit, and that's my mistake because I ended up losing all of my capital.

Copytrading can be profitable, but only for a few ones. At the end of the day, it's always better to learn how to trade for yourself instead of relying on other traders to make money.

[CONVOAI]

The biggest problem with copy trading is blind trust. Many times a trader can survive a drawdown due to having a large capital but an account with a small capital cannot. Therefore instead of just copying a trade one should try to understand its entry logic and stop loss discipline and overall strategy otherwise, if the market goes a little against it then a small account can be liquidated quickly.

[michellee]

You don't have to use the same amount from whom you are copy trade from. You have different balance from them but you can copy trade them but adjusting your balance to trade.

I don't use copy trade too often but if I want to use, I will adjust the balance first before use it. If the balance does not reach the minimum, I will not copy trade and search for others.

You should tells him to learn trading does than rely on copy trading. The risks could be higher than he can expect. He doesn't know the traders and just copy trade it without knowing how good his skills are.

[Text]

in my opinion the health of copy trading really depends on how it is used, if someone treats it like a learning tool like watching how experienced traders manage entries, stop losses & risk then it can have some value but blindly copying trades w/o understanding the strategy is risky.

you don’t need to have the same amount of money as the trader you’re copying, most copy trading platforms automatically adjust the trade size based on your account balance so if the trader has $1M & you only have $100, the system usually scales the position proportionally.

[joeperry]

You don't need to use the same amount of money to open a position with the person that you're copying his trade because you are to trade with the amount of money that you can afford to lose.

I agree with this and if I am not mistaken there also an option where you will base your position by percentage for instance the one you are copying allocates 10% of their position, then no matter how much your bankroll is or how much you allocate to the copy trading wallet only 10% of it will be placed as open position. Personally, if you follow a good trader, you can't go wrong with copy trading but the cons that I only see this is that you will not learn by copying others and will not know the reason of their position unless they have some kind of Telegram group where the trader discuss the reason about his/her position.

[justdimin]

From experience and with post I have came across on this forum that copy trade could be bad or even using tools to start trading there could be errors or being liquidated.
Now I want to know, must you also used the same amount from whom you are copy trade from? Reason being that there are people who could funds about $1m in their account to trade while there are people who may likely funds 100$ to their account while trading, and if using same lot size as their copier don't you think that person could get liquidated?

Why doesn't he learn trading himself if he is so into trading? I don't understand why people do this in the first place. If you want to become a trader, then simply learn trading from scratch yourself, gain as much knowledge as possible and once you are done with that, simply start trading with a small amount to practice your knowledge. You shouldn't start big as a beginner because you have no experience yet, you have to gain experience first and then you can do trading with larger amounts, because then you will know more about the market and trading practices.

Copying someone else's trades or making trades based on signals you are getting in a group is like wasting your money just like that. One should only do that if they don't want the money and want to waste it, and I would rather use that money to play some slots and I might actually hit a big win and get something instead of using it on copy trading or following signals. One can only have long-term success through trading if they do it themselves without relying on such things. That's my point of view on this matter.

[goldkingcoiner]

I had a friend who discovered a channel on social media and since he has been on.my neck to check it out how it works, thus, I am not that a fan of copy trade or even trade above spots trading talk less of copy trading someone's trade.
From experience and with post I have came across on this forum that copy trade could be bad or even using tools to start trading there could be errors or being liquidated.
Now I want to know, must you also used the same amount from whom you are copy trade from? Reason being that there are people who could funds about $1m in their account to trade while there are people who may likely funds 100$ to their account while trading, and if using same lot size as their copier don't you think that person could get liquidated?

Your friend could realistically get liquidated and most likely he fell for some "signal social media influencer" who will eventually ruin/scam his fans. I have never tried copy trading but I would not even trust a trading bot with my money, so no way would I trust a stranger to lose/win money for me.

Although that is me. I cannot speak for everyone.

[Zigabel]

You must not use the exact same amount for you to be able to copy trades but you will need to have a certain amount in your trading account for you to be able to copy their trades, that is what applies most times with copy trading. This is usually done because there are some percentages upon which the trader places a trade and you copying that will be too insignificant to trigger a trade on some account size, so for a $1m account, I believe  the minimum they will allow copy with will be around $10k, so if you want to copy with an account size of $100 you could look for other traders who has smaller accounts and trading on smaller percentages that will accommodate you to copy, anyways, this may not apply to every platform but this is to the best of my knowledge and experience.

[programmer3666]

I had a friend who discovered a channel on social media and since he has been on.my neck to check it out how it works, thus, I am not that a fan of copy trade or even trade above spots trading talk less of copy trading someone's trade.
From experience and with post I have came across on this forum that copy trade could be bad or even using tools to start trading there could be errors or being liquidated.
Now I want to know, must you also used the same amount from whom you are copy trade from? Reason being that there are people who could funds about $1m in their account to trade while there are people who may likely funds 100$ to their account while trading, and if using same lot size as their copier don't you think that person could get liquidated?

My opinion towards copy trading I view it as just a blind approach to trading. Because it just looks like a desperate trader simply following another trader’s strategy and also accepting whatever happens at the end of it, whether the trade wins or loses. The follower usually has no real control over the decision, they just mirror the trade and hope for the best. That’s why it can be risky. The person copying the trade does not fully understand why the trade was taken in the first place. If the market suddenly changes its direction, the follower will not know what to do unless if he or she has some foundational knowledge and that brings us to why it can be healthy in some cases, if the person doing it has some basic knowledge of trading. At least then they understand what they are copying and if something looks wrong they can decide not to follow the trade. Without that foundation, copy trading easily becomes just another form of blind gambling.

[KingsDen]

I had a friend who discovered a channel on social media and since he has been on.my neck to check it out how it works, thus, I am not that a fan of copy trade or even trade above spots trading talk less of copy trading someone's trade.
From experience and with post I have came across on this forum that copy trade could be bad or even using tools to start trading there could be errors or being liquidated.
Now I want to know, must you also used the same amount from whom you are copy trade from? Reason being that there are people who could funds about $1m in their account to trade while there are people who may likely funds 100$ to their account while trading, and if using same lot size as their copier don't you think that person could get liquidated?

Your friend could realistically get liquidated and most likely he fell for some "signal social media influencer" who will eventually ruin/scam his fans. I have never tried copy trading but I would not even trust a trading bot with my money, so no way would I trust a stranger to lose/win money for me.

Although that is me. I cannot speak for everyone.

I have never tried copied trading before, even when I did not quit trading, what I tried to do was to win by myself but it was difficult after the 2021 bull run. During the bull run I was making some small small wins, I thought I have known how to trade. But when the bull run was over, I tried my amateur strategy again and everything back fired.

But I later on discovered copy trading in bybit. It looks genuine because the traders have their review displayed, their trade history, win rate and the min amount you can use to enter the trade.

So, I'll advice to use cex copy trading rather than joining random social media groups.

[SquallLeonhart]

I had a friend who discovered a channel on social media and since he has been on.my neck to check it out how it works, thus, I am not that a fan of copy trade or even trade above spots trading talk less of copy trading someone's trade.

Well, no harm in checking it out, I think. Being rigid about not checking something is as bad as copying the trades blindly, as you suggested. I mean, there is a good chance that it's just another one of those fake or scam telegram channels that ask for money or suggest random trades as premium. But still, it's worth checking out since your friend is suggesting it and I'm assuming here he gains nothing by fooling you.

In general, though, I'm not a fan of copy trading because the real traders who make money systematically would never share their strategies and/or trades because it gets saturated very quickly. What's available publicly is usually trash, but worth checking just in case you find gold (a good channel/group, etc).

[RockBell]

The biggest problem with copy trading is blind trust. Many times a trader can survive a drawdown due to having a large capital but an account with a small capital cannot. Therefore instead of just copying a trade one should try to understand its entry logic and stop loss discipline and overall strategy otherwise, if the market goes a little against it then a small account can be liquidated quickly.

I am not a fan of copy trading i feel like there is abetter chance in doing things your self and that is one of the ways you can even get better because there is a way that things will get better when you are consistent that way you will even gain more experience because most people don't even know most of the things to do like studying charts and many others the only thing they are always doing is for them to just to copy other peoples trades.

And when you take your time to learn there is more value in that that copying what you don't know because from the look of things people are always wanting the easiest way out and which is always not the best way but they are always taking they for granted but when they do it and it does not favor them eventually they will turn around and do the right thing.

[Fivestar4everMVP]

I had a friend who discovered a channel on social media and since he has been on.my neck to check it out how it works, thus, I am not that a fan of copy trade or even trade above spots trading talk less of copy trading someone's trade.
From experience and with post I have came across on this forum that copy trade could be bad or even using tools to start trading there could be errors or being liquidated.
Now I want to know, must you also used the same amount from whom you are copy trade from? Reason being that there are people who could funds about $1m in their account to trade while there are people who may likely funds 100$ to their account while trading, and if using same lot size as their copier don't you think that person could get liquidated?

Copy-trading can be good and or bad, it all depends on who you decide to copy your trades from, like it's often said that the blind can't lead the blind to cross an express road as both of their lifeless bodies will end up in a nearby mortuary, so also copying trades from a trader who doesn't know how to trade and mostly ending up in losses will also lead you into losses as well..

And it's not mandatory that you must fund your trading account with exactly same amount of money the person you want to copy from funded their own account with, you can fund your trading account with any amount of money you have, the copy trading is in the trade setup, what this mean is that your open positions are going to be the same with that of the person you copied from even though with different amount, you will either profit or lose money based how much you invested..
If you must copy someone else's trades, make sure the person has a high win rates.