Copy Systems Explained

The general idea of our groundbreaking CopyTrader tool is pretty simple: choose the trader you want to copy, choose the amount you want to copy them with, and watch your account copy their trades automatically.

However, beyond the basic concept of Copy Trading, things get a little bit more complicated, especially since we’ve added some advanced options to enable you to control your copy risk.

If you want to learn more about the two Copy systems we have at the moment and the new features of Copy Stop Loss and Pause/Resume Copy, you’ve come to the right place.

Before we begin, we will refer to:

Here are a few important points you should be aware of before copying: General CopyTrader considerations:

**These terms and conditions are subject to change at eToro’s discretion, at any time.

CopyTrader – Copying all trades

The CopyTrader system gives Copiers the option to copy all of the currently open trades of the Copied Trader. Copiers choosing this system will have the existing open trades of the trader they are copying opened in their account, with the following terms:

  1. The existing open positions will be opened in the Copier’s account with the market rates available at the time of copying (not the rates at which the original trades were opened).
  2. The trades will have the same SL and TP as the original trade.
  3. They will mirror the Copied Trader’s future actions including changes in SL’s and TP and closing of the trade, from the moment you begin copying them. However, if the copied trader extends his SL by adding more funds to a position, your SL will adjust accordingly, however your position amount will stay the same as its initial amount. Therefore, you may sometimes see differences in gain percentage between your copy account and the copied trader’s account.
  4. You will be able to close a specific copied trade without closing the copy account.
  5. If the copied trader trades in markets that are closed during the time he is copied (market break for example), the system will open a Market Order for the copier and once the market is open, the order will execute into a position with the first market rate.

Please note: The trades will all open in your account at the same time. You will see them at a slight loss which reflects the spread between the Buy and Sell rates, in order to show you a real time representation of the funds you will get if you close the trade.
New trades will open at the same rates as the Copied Trader opens them and use the Realized equity (balance + invested funds) as the basis for the proportions of copied trades. Eg. A trade opened with 10% of the copied trader’s realized equity will open a trade in your copy account with 10% of the realized equity in the copy relationship.

However the proportion can change when the Copied Trader changes their available balance – this can occur when the Copied Trader makes a deposit or withdrawal, or receives eToro credits. When any of these events occur, there is a change in funds in the Copied Trader’s account, and you might notice trades that have a different proportion than before.
When the Copied Trader closes all open trades, the trade size proportions between his account and the Copier’s account are reset (equal once more).

**These terms and conditions are subject to change at eToro’s discretion, at any time.

CopyTrader – Copying only new trades

Copiers choosing this system will only copy new trades that the Copied Trader opens after the copy action starts. The following terms will apply –

  1. Only trades opened after the copy action started will open in the Copier’s account.
  2. New trades will open at the same rate as the Copied Trader opens them.
  3. The proportions of the new trades will be calculated from the Realized equity of the Copied Trader (account balance + invested funds)
  4. The trades will have the same SL and TP as the original trades.
  5. All of the Copied Trader’s actions will automatically be copied in the Copier’s account, including changes in SL’s and TP’s and closing of the trade. However, if the copied trader extends his SL by adding more funds to a position, your SL will adjust accordingly, however your position amount will stay the same as its initial amount. Therefore, you may sometimes see differences in gain percentage between your copy account and the copied trader’s account.
  6. You are able to close a specific copied trade without closing the copy account.

Please note: The proportion can change when the Copied Trader changes their available balance – this can occur when the Copied Trader makes a deposit or a withdrawal, receives eToro Credits or closes an old trade that was opened before you started copying him (if you chose not to Copy the already opened trades); when any of these events occur you might get trades that have a different proportion than before.

**These terms and conditions are subject to change at eToro’s discretion, at any time.

Copy Stop Loss (CSL)

eToro’s Copy Stop Loss (CSL) feature allows you to preconfigure the percentage you are willing to lose on a trader you are copying. In the past, CSL displayed the dollar amount or percentage of your original investment that had to be lost in order for the copy to close. We recently reversed the logic so that CSL now represents the dollar amount or percentage your copy equity must reach in order for the copy to close. Since this change is purely visual, it does not affect existing settings. The default CSL remains as-is; The only difference being that it is now displayed as 60% instead of 40% because the copy will close when 60% of the original allocation remains.

If for example you set a 95% Copy Stop Loss on Trader X, this means that you would like your copy of Trader X to close when the copy equity reaches 95% of the original allocated amount. Conversely, if you set a 5% Copy Stop Loss, it means that you would like the copy to close when the copy equity reaches 5% of the original allocation.

So, in order to configure your CSL to close when losses reach 95%, you will need to set your CSL to 5% of the allocated amount. Where it says ‘stop copying if the value falls below: X amount’ you will need to change the default from 60% to 5% of the total allocated amount.

It is important to note that any time the CSL is edited, the new CSL will relate to the copy equity at the time of the edit, not the original copy equity. Similarly, every time you add or remove funds from the copy balance, either manually or due to a copy dividend, the CSL amount will update accordingly so that the percentage remains consistent.
As an example, let’s say you allocate $1000 to a trader and set your CSL to 50%. If you then remove $500 from the copy balance, your CSL amount will update from $500 to $250. The percentage of loss stays the same but it is now 50% of $500, instead of 50% of $1000.

When you stop copying a trader who has open positions during weekends, market breaks and other times when the markets are closed, an exit order will be submitted for the copied trades which can’t be closed immediately during these times. Accordingly, the copy account will stay in Pending Close status until all trades within the copy relationship are closed. Open positions will close at the first rate in the market when the market reopens, which may or may not incur further losses.

Copied Trades SL

The CSL was put in place in order to limit your overall exposure to any one trader, and because your copied trades are protected by the CSL we can allow for more flexibility when it comes to their Stop Losses (SL).

With regular trades, whenever you increase the SL, funds are added to the trade from the account balance to represent the extra funds needed to support it.

With copied trades, whenever the copied trader extends their SL, there are no extra funds deducted from the overall Copy Amount. Therefore, any one trade can go 200%, even 300% into loss, which gives it the flexibility to potentially recover the losses without being closed by the SL, and at the same time, leaves the Copy Amount with enough balance to cover additional trades. However, if the copied trader reaches your set CSL in terms of unrealized loss overall, the entire Copy relationship will be closed.

This difference creates several discrepancies between the copied trades and the original trades:

We don’t add funds into copied trades, therefore the percentage of available copy balance might be bigger than the balance of the copied trader. Edit Copy Copy allocation The copied trade’s gain/loss will be calculated according to the original amount invested in the trade. This is unlike a regular trade, for which the gain/loss is calculated according to the total amount in the trade, including all stop loss extensions.

Example: Investor A has $1,000
Investor B copies Investor A with $1,000 dollars.
Investor A opens a position with 10% of his funds ($100); Investor B’s account copies the position with $100. Investor A then adds an additional 10% ($100) into the trade’s Stop Loss. The trade amount for A’s position is now $200 in amount whereas the copied trade for B stays at $100.
The percentage of the balance for the copied investor will show 80% available balance. The Copy amount however, will show $100 (still just 10%) for the copier’s account as no funds were added to the copied trade.
If the original trade has lost $150 of the $200 total amount, it will show a 75% loss for the copied investor (A), but the copied trade (B) will show 150% loss because it is calculated according to the original amount of $100.
Trade bar

Pause Copy

With the new version of CopyTrader we are proud to present “Pause Copy”, a feature that allows you stop copying a trader without actually closing all the currently opened positions.

“Pause copy” can be activated from your Portfolio by clicking on the settings button and “Pause copy” Pause Copy When “Pause copy” is activated there will be no new trades opening under that copy relationship however all the currently opened trades will still be copying the SL/TP and close actions from the Copied Trader.

We hope this article has helped you gain a clearer understanding of our Copy Systems. If you have any further questions, please don’t hesitate to contact us via our @CustomerService wall on eToro, or via our help page.

**These terms and conditions are subject to change at eToro’s discretion, at any time.

Loading nanoRep customer support software