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)

CSL is a feature that gives you the ability to effectively manage your CopyTrader portfolio by providing risk management across each copy relationship based on real time Profit/Loss values. It is essentially an automated risk control system that allows you to set controls for the entire copy relationship, as a dollar value.

The system will automatically set the CSL at 40%, as a default, of your total invested copy balance with any one copy relationship. Therefore, you will now be able to assume that when the copy balance has reduced by 40%, the CSL will trigger and terminate that copy relationship. The range that you can manually set your CSL at, is between 5% to 95% where as the 95% value is a true ‘safety net’ that should only trigger when nearly all the money in that copy relationship is gone.

For example: Trader A is copied by Trader B with $1000. The CSL is set to a 40% unrealized loss which in this case is $400. Once the current equity, including the profit/loss over all trades, is reduced to $600 , the whole copy account will be closed, and the remaining funds (60% of the original copy amount) will be returned to your balance.

So, what happens when CSL triggers?

If your copy relationship has unrealized losses of 40% of your allocated funds, the CSL will trigger and all the positions in that relationship will close. In the WebTrader, the history tab contains a “Close By” column. The closed trades will be labeled in this column as “CSL”.

Copy stop loss

The CSL value can be adjusted to a value of maximum 95% and minimum 5%, as a safety net. Please note, that the system will not allow you to reduce the CSL to a value that is so small that it could trigger the closure of the CopyTrader relationship immediately.

As an example: If you are copying a trader with $1000 and the CSL value is the default 40%, you are currently loosing $300 (in opened positions) and you want to adjust the CSL value, you will not be able to set it for a value of 30% ($30 in this case) or less as this would trigger the immediate closure of the CopyTrader relationship and all the trades under it. In this case the maximum CSL you will be able to set is 35%.

Keep in mind that the CSL value will change if you change your copy amount. Adding or removing funds from the copied trader will trigger a recalculation of the CSL value as a percentage of the new copy amount.

Say for example, you’re copying a trader with $1000. Your investment in this trader has lost $900 of its value but you still believe in this copy relationship. When you allocate another $1000 to that trader – the CSL value will now be updated, and calculated out of the new $2000 total allocated to copying this trader.

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

Copy stop loss message

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 the eToro OpenBook Portfolio page or from the WebTrader 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 OpenBook, or via our help page.

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

Most Followed Traders

See who the most copied traders are in the eToro social investment network. Filter by 3, 6 and 12 months and join the social trading revolution.

Running-Chris
Running-Chris
Germany
19725
Followers
1472
Copiers
Running-Chris
Running-Ch...
24.11%
sameerah786
sameerah786
India
7066
Followers
586
Copiers
sameerah786
sameerah78...
3.73%
Lothbrock
Lothbrock
Norway
4042
Followers
165
Copiers
Lothbrock
Lothbrock
26.34%
antares82
antares82
Italy
3506
Followers
151
Copiers
antares82
antares82
3.48%
smarquezc
smarquezc
United Kingdom
3401
Followers
105
Copiers
smarquezc
smarquezc
9.41%
Loading nanoRep customer support software