Swiset Blog

How to Make the Most of Copy Trading?

For several years, copytrading has been one of the branches in trading that has garnered the most attention. From the successful eToro commercials to multiple influencers recommending copying the trades of a robot or investor, copytrading has become a highly adapted tool for individuals who want to enter the world of trading and investments without needing to make the trades themselves. However, many people misuse this tool. In this blog, I will explain the 4 principles for using copytrading correctly.

Before delving into the principles, it’s important to clarify that conducting thorough research before investing in any copytrading platform is crucial. While investing is often considered “simple,” when it comes to withdrawing capital, you might encounter limited withdrawal methods that most people are unaware of. Therefore, it’s highly valuable that before choosing one or more platforms (as I will mention later), you read, research, and ensure your choice to avoid complications along the way. (At the end of the blog, we’ll provide you with one of our users’ favorite platforms.)

Let’s begin.


1. Choose traders based on their longevity, not just their profitability.

Engaging in trading is relatively easy, and achieving short-term positive results is also possible. However, what’s truly challenging is maintaining those results in the long term. So, whenever you come across a trader or a trading system that catches your attention, focus on how long they’ve been achieving those results—how many months or years (preferably at least 1)—rather than fixating on whether they made 100% profit in the last 2 months.

2. Diversify in everything, including platforms.

We tend to commit to one thing—a bank, a trading account, a trader, an asset. Nevertheless, in copytrading, when you’re just starting out, you might not be certain about your choices, and even after some time, finding a new trader to copy takes time. That’s why significant diversification at the BEGINNING is necessary while you adapt to the trader type, platform, assets you’re trading, and even the risk you’re assuming. In other words, seek to copy traders on at least 2 trading platforms and a minimum of 3 or 4 trading systems on each platform. Do this for at least 2-3 months, observing the profitability and risk of each. This way, you’ll understand which ones you’re most comfortable with, and later, instead of diversifying, you can concentrate your investment in a maximum of 3 or 4 systems.

3. Regularly manage your investments.

Thinking that everything is “automatic,” people often invest and only review their investments months later. It’s important to recognize that while it’s mostly automated, it’s valuable to consistently review the results of the various systems you’re copying. To do this, I suggest setting aside 15 to 20 minutes weekly to check how each system is performing and manage them.

What does managing involve?

a. Stop copying those that aren’t performing as expected (without being too impatient, of course).

b. Adjust the risk of the trading systems, increasing or decreasing it.

c. Inject more capital as time goes on. I’d like to emphasize that investments won’t yield significant returns unless you’re consistent in periodically injecting more capital.

d. Continuously search for new systems and traders to copy; you can even follow some of them on demo accounts and invest real capital when you feel confident.

4. Active and continuous learning.

I could potentially skip this principle, but I often encounter many people who don’t follow it. If you’ve made it to this part of the blog and are genuinely interested in this topic, it’s highly valuable to keep learning, dedicate time in your week to study topics related to trading and investments. This industry moves rapidly, with new developments constantly emerging. Moreover, it will provide you with more confidence in your investment decisions.

In conclusion, copytrading is a powerful tool that expands our potential for additional income sources. However, just like in investments, nothing is static, and it’s crucial to stay ahead of what’s happening in this fast-paced and ever-changing world. Furthermore, apart from copytrading, there’s also social trading, which we’ll discuss in another blog. However, I’d like to leave you with our recommendation for one of the platforms most used by our users.

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Andrés Jiménez

Co-Founder of Swiset