What strategy i follow as a copier for copy trading?
I’m new to copy trading and want to understand how to choose traders to copy. What do you look for before following someone, and how do you manage your risk?
I started with following them on there past performance.
Past return would be pretty low on my list by itself. From my experience with hfm, I'd look at max drawdown, how stable the position sizing is, whether losses are being averaged into, trade duration, and whether one or two huge trades explain most of the track record. A smooth equity curve with controlled risk tells you much more than headline return
ortellius posted:Past return would be pretty low on my list by itself. From my experience with hfm, I'd look at max drawdown, how stable the position sizing is, whether losses are being averaged into, trade duration, and whether one or two huge trades explain most of the track record. A smooth equity curve with controlled risk tells you much more than headline return
I would have to agree. Risk stability is definitely high on priority list. And stable equity is far more important than balance growth. Balance graph can always be manipulated while equity cant (if the account is being updated regularly).
ortellius posted:Past return would be pretty low on my list by itself. From my experience with hfm, I'd look at max drawdown, how stable the position sizing is, whether losses are being averaged into, trade duration, and whether one or two huge trades explain most of the track record. A smooth equity curve with controlled risk tells you much more than headline return
Exactly, I agree. Past returns can be tempting, but drawdown and position sizing give a much better picture of how much risk the trader is actually taking. A smooth, consistent track record matters more to me than one or two big winning trades.
Maximum Drawdown: <1 % (Live peak-to-trough)Total Gain: > +20%Profit Factor: > 2 or 3
Risk/Reward Profile: Asymmetric allocation with strict intraday invalidation levels.
I have had great ROI with a certain signal, take a look at my profile.
