Copy trading

How it works

• A leader trades their own account on a platform that supports copying.
• A follower allocates a sum; each leader trade is replicated at the same proportion.
• The platform or leader takes a fee, often a share of profits.
• The follower can stop copying, but open positions may close at a loss.

What a leader's record hides

Displayed returns are often from a short period, a small account or a lucky streak, and survivorship bias hides the leaders who stopped. A high return with a deep maximum drawdown means the follower must sit through the same fall. Followers also get worse fills than the leader when many accounts copy the same order.

Questions to ask

What is the leader's maximum drawdown and over how many months? What leverage do they use? What happens to followers' positions if the leader is liquidated? Most regulators treat copy trading as a form of portfolio management with its own rules.

On BRVX

BRVX does not offer copy trading, trading signals or bots. Every BRVX position is opened by the account holder, with leverage from 5x and a take-profit and stop-loss the holder sets.