Copy Trading What Is It, Strategy, Pros & Cons, Vs Social Trading

If they are interested in trades that are held for multiple days, weeks or months, they should focus on traders who have transacted trades in this fashion. While other investment products (e.g., investment funds) have an expected annual return of around 10%, potential profits of professional traders can range between 7-24% p.a. However, many platforms allow new traders to initiate copy trading in easy and hassle-free steps. For example, traders can pick the portfolio they want to copy, and they take the same positions in their portfolio.

social trading strategies

Commissions are transferred from a copy trader’s account to the trader’s account after rollover has been performed, i.e. once a trading interval has been completed. The commission will be paid only in case the attached copy traders have registered profits from copied trades from the moment of the latest rollover or attachment. If there’s floating loss (open-trade loss) in the Trader’s account, the amount of profit on which a commission shall be paid will be corrected in order to consider the loss change value over the trading period.


As the phrase suggests, it’s a process in which a crypto investor copies the trades of an expert trader. Remember what we said about success at the very beginning of this article? By copying the trades of a successful crypto investor, one can derive profits from someone else’s expertise and experience, building a track record of success that leads to further successful trading. The incentive for experienced traders to share their strategies, is that they are often rewarded with both money and status – social trading networks usually have a leader board based on popularity and success rate. Similarly to any other type of trading, the key to a successful copy trading strategy is knowing when to enter a copy relationship and when to exit it. As in various financial markets, traders experience upswings and downswings, and you want to make sure to start copying them at the beginning of the former rather than the latter.

social trading strategies

One would think the profitability should equal 0%, but, as you may have noted, the account equity dropped 10.1%, not 10%, following the opening of the new trades. Rollover is a settlement procedure between a Trader and a Copy trader. Thus, a rollover means that a trading period has been completed and a new trading interval begins. If profits have been registered at the end of a trading period, the Trader receives his pre-set share in a Copy Trader’s profits. Conversely, a rollover is not performed if no profits have been registered.

Why Has Copy Trading Become So Popular?

In this case, investors trade the relative value with the expectation that the prices will return to a long-term average. These bots will have a smooth PnL when traded under the right conditions. Trality’s automated index tracking portfolios are diversified baskets of crypto-assets that re-balance automatically and provide you with a simple, reliable and maintenance-free way to gain exposure to the crypto market.

  • Our Electronic money institutions are Neteller and Skrill authorized by FCA of the United Kingdom and Cardpay authorized by Central Bank of Cyprus.
  • Copy trading should only be done through a trusted source, and we highlight one of the best crypto trading platforms below.
  • During the first month of trading, a Trader’s account is considered to be new and has 6 risk points.
  • Copy trading is more passive because the trader does all the work you are copying.
  • If you want to share your success with others, you can earn up to 20% in performance fees!
  • Investors can just select the traders that they want to copy and automatically replicate the exact positions in their portfolio.

You cannot start copying the same Trader before the previous copying stops. The new value will be applied when the same Trader is copied again after the previous Copying ends and the Profit share parameter has been changed. Although the process of copying is very fast – less than 0.5 seconds, the trades copied to the account of the Copying Trader are executed at current prices. Therefore, the execution prices on the account of the Copying Trader may differ slightly from the execution prices of similar trades on the Trader’s account.

eToro – Best Social Trading

Or, reduce your exposure to one trader and keep your portfolio diversified by not investing too much in a single trader. You can replace your existing ones at any time, just keep in mind that you’ll need a separate Invest account for each trader you decide to follow. Copy trading allows you to directly copy the positions taken by another trader. You decide the amount you wish to invest and simply copy everything they do automatically in real-time – when that trader makes a trade, your account will make that same trade as well. Your financial situation could also be vastly different to that of a professional investor, so it’s important to set your own trading plan that outlines how much capital you’re prepared to risk. Yes, social trading and copy trading are based on the same concept.

Social trading involves observing the trading behavior of other traders and following their strategies using either copy trading or mirror trading. A tixee, we provide industry leading products and services to clients all over the world. We help to create investment opportunities across a broad range of international markets, so you can trade in a way that’s comfortable for you. It is usually a good idea for traders to consider risk and diversify their capital across many leaders and to pick a strategy that meets their time horizon. For instance, traders who want to place lots of short-term trades should find a trader that has this type of historical track record.

Trality’s Marketplace and trend-following strategies

Perhaps it’s their number of followers, or profitability, risk level, the total amount of funds they manage or their return on investment. You might choose a combination of these – it’s completely up to you based on whatever you think is important. what is social trade Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

As a result, Anna benefits from Tom’s expertise and earns a profit from her investment. Anna realizes that social trading can be a valuable resource for learning and making profitable trades, despite its low adoption rate in the forex market. Sharing ideas about which stocks or other assets to trade, discussing market trends and conditions, and following the trade practices of other traders are all part of the social trading practice. Furthermore, it can foster community and collaboration among traders, benefiting new and experienced traders.

And so what is Social Trading?

Taking advantage of this trading strategy can be highly lucrative. In fact, many social traders, new and experienced, have had the opportunity to gain direct access to the top traders on the platform and have increased their trading success significantly. Copy investing, or mirror trading has become very popular with investors worldwide, mainly because many early adopters have had enormous success and were able to boost their trading skills and profitability with zero effort. They don’t need to know how to analyse the markets or how to interpret trading signals or indicators. Copy trading is a way to automate your trading by copying the trades of other traders. It is often used by newbies that might not yet know how to trade, with the added benefit of helping to teach them on the way.

Unexpected crypto volatility and copy trading

Or you can spread your risk across your portfolio which will enable you to ride the ups and downs in markets so that you can trade over the long-term. To find traders that have a strong track record and trading style that you want to emulate. There are no special fees to use the copy trading function, apart from the ones you pay the Strategy Manager whenever they make a profit. Any brokerage fees that would apply to a normal trade will be applied to copy trades. Experience our trading platform for 90 days, risk-free. When trading using signals, it’s important to note that past performance is no guarantee that the market will repeat itself.