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Trading Strategies

Copy Trading

Automatically replicating the trades of experienced traders.

Full Definition

Copy trading allows you to automatically replicate the trades of experienced traders or systematic strategies in your own account. When the signal provider buys, your account buys. When they sell, your account sells. Position sizes are typically scaled to your account balance so the risk percentage matches the master account. This enables traders without time or expertise to participate in forex while learning from proven approaches.

Copy trading comes in several forms. MAM (Multi-Account Manager) and PAMM (Percentage Allocation Management Module) accounts pool capital and allocate returns proportionally. Signal services push trade instructions to subscriber terminals that execute through a bridge or EA. Social trading platforms like Myfxbook Autotrade, ZuluTrade, and proprietary broker platforms let subscribers choose from many signal providers. The common thread is automation: once connected, trades execute without manual intervention from the subscriber.

For example, if a copy trading subscriber has a $10,000 account connected to a master that enters 1 standard lot on EUR/USD at 1.0850, the scaled position on the subscriber might be 0.1 lots (proportional to the master's account size). A 50 pip winner produces $50 on the subscriber account and $500 on the master, keeping returns proportionally equivalent. Risk is similarly scaled, so drawdown percentages match between accounts regardless of balance differences.

In copy trading, choosing the right provider is the single most important decision. SteadyFlowFX publishes a verified Myfxbook track record showing 71.3 percent win rate, 1.73 profit factor, Sortino ratio 5.41, and 34.2 percent max drawdown across 9 algorithms trading 8 currency pairs, with a 12 percent average monthly net return over 3 years and 9-year backtest. These verified numbers, combined with systematic position sizing, allow subscribers to participate in the strategy's performance with proportional risk and return.

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