Copy Trading

Copy trading is a service where your account automatically mirrors the trades of another trader (usually called a "lead trader" or "strategy provider"). When they open a position, your account opens the same position, scaled to your capital. When they close, you close. It's been popularized by platforms like eToro, ZuluTrade, and MyFxBook AutoTrade. The appeal is obvious: you don't need to learn technical analysis or manage trades yourself. You pick a profitable trader and let their skill work for you. The reality is harsher: most copy-trading gurus are not actually profitable long-term. They look good during bull runs, then blow up during drawdowns. The ones who ARE consistently profitable usually charge high performance fees or manage huge accounts that retail copiers can't realistically match. Even the best copy trading has psychological risks. When your copied trader enters a 10% drawdown, YOU'RE in a 10% drawdown — and you didn't make the decisions that got you there. Most copiers abandon the strategy during drawdowns, which is the worst possible moment to quit.