Copy trading

[eleanorK80]

Hello all!
I am not a copy trader, but someone asked me this question, and I thought maybe it might be useful for others, so I decided to bring it here:
What criteria should be applied to evaluate the performance and risk profile of a trader before engaging in copy trading?

 

[wxytrader]

Hello all!
I am not a copy trader, but someone asked me this question, and I thought maybe it might be useful for others, so I decided to bring it here:
What criteria should be applied to evaluate the performance and risk profile of a trader before engaging in copy trading?

I'm pretty sure you're a bot, but I was actually thinking the same thing about asking what the f is copy trading?
Like you're taking the same risk so is this just to get around margin?

 

[PPC]

Hello all!
I am not a copy trader, but someone asked me this question, and I thought maybe it might be useful for others, so I decided to bring it here:
What criteria should be applied to evaluate the performance and risk profile of a trader before engaging in copy trading?

Hi,
it sounds like . . . . “I have a friend whose friend has a friend whose friend has a friend . . . ”

Why don't you instead say "I can't make any money in the markets so I'm considering copy trading

Look, if you want to do copy trading, then look for VERY STABLE equity curve over a very long period, with many trades. It will tell you how mentally stable the trader is and how s/he manages risk and position sizing. Don’t get mesmerized by returns, instead scrutinize how s/he manages risk.

Be aware that some traders trade multiple accounts and then they only promote their successful account and they don’t mention their other not so successful accounts.

Don’t expect the trader to fully disclose (in real time) what trades he is getting into, because nobody in their right frame of mind wants to deal with their clients’ psychological issues/biases.

Maybe diversify the risk capital between different traders trading different markets so that you have some protection in case the brown stuff hits the ceiling fan.

Or just buy some EFTs in different asset classes (hedge against inflation) and forget about copy trading, and go on to enjoy your life.

 

[ironchef]

Hello all!
I am not a copy trader, but someone asked me this question, and I thought maybe it might be useful for others, so I decided to bring it here:
What criteria should be applied to evaluate the performance and risk profile of a trader before engaging in copy trading?

A very easy copy trade:

BRK annual report is coming out soon. Borrow a copy, read what Buffett owns, buy what he owns and you can go fishing, don't need to trade since his holding period is forever. Check once a year to add to your holding.

If that is too much work, just buy BRK-A (or B if you are not already a millionaire).

 

[Drawdown Addict]

Copy trading is a amazing for the one that starts the trade.

What do you always want to happen when you enter a trade? That everyone follows you, so the price goes into the direction you traded into.

It is the essential trick that is running in trading chats. Lost of minions trading in the same direction that the master set.

Obviously the master gets out before the minions, so the trick is complete. The last minion is the one that gets hurt.

Wait! Am I describing retail trading following props?

 

[legionx]

Hello all!
I am not a copy trader, but someone asked me this question, and I thought maybe it might be useful for others, so I decided to bring it here:
What criteria should be applied to evaluate the performance and risk profile of a trader before engaging in copy trading?

Drawdown!

 

[ironchef]

Copy trading is a amazing for the one that starts the trade.

What do you always want to happen when you enter a trade? That everyone follows you, so the price goes into the direction you traded into.

It is the essential trick that is running in trading chats. Lost of minions trading in the same direction that the master set.

Obviously the master gets out before the minions, so the trick is complete. The last minion is the one that gets hurt.

Wait! Am I describing retail trading following props?

Why you like drawdown?

 

[PPC]

Copy trading is a amazing for the one that starts the trade.

What do you always want to happen when you enter a trade? That everyone follows you, so the price goes into the direction you traded into.

It is the essential trick that is running in trading chats. Lost of minions trading in the same direction that the master set.

Obviously the master gets out before the minions, so the trick is complete. The last minion is the one that gets hurt.

Wait! Am I describing retail trading following props?

What you’re describing can happen in signal services or trading rooms, but that's NOT what happens in copy trading, because that's not how copy trading works.

@eleanorK80 was referring to copy trading, and not signal service / trading room. It is a subtle, yet major difference.

You can read introduction about how copy trading works here:

https://en.wikipedia.org/wiki/Copy_trading

 

[Drawdown Addict]

What you’re describing can happen in signal services or trading rooms, but that's that’s NOT what happens in copy trading, because that's not how copy trading works.

@eleanorK80 was referring to copy trading, and not signal service / trading room. It is a subtle, yet major difference.

You can read introduction about how copy trading works here:

https://en.wikipedia.org/wiki/Copy_trading

Not interested in propaganda. Thank you.

 

[murray t turtle]

Hello all!
I am not a copy trader, but someone asked me this question, and I thought maybe it might be useful for others, so I decided to bring it here:
What criteria should be applied to evaluate the performance and risk profile of a trader before engaging in copy trading?

%%
A] Have to consider your own personality.
z]Even if i got to sit in the same room with jack Schwager top 2 traders;
i still would want to do my own research.
IPOs + any stuff that does not even have 50 + 200 trading days = super risk.
Very few things are 100% original, so I would not be afraid to copy anyone;
but still do plenty of my research.
Common sense like the 50 day-200day remark helps; or could learn that the hard way