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#1 22-03-2021 20:19:14

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 3050
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cTrader's copy trading platform sets a new world copying record!

cTrader's copy trading platform sets a new world copying record!


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We all know that copy trading is getting more and more popular these days, but a truly unique event for the cTrader Copy platform and the copy trading world in general took place a few days ago.

Only one strategy saw a $10 million investment! Let's dive deeper into the story and find out what happened.

What is copy trading?
Copy trading essentially allows investors to copy the strategies of other traders around the world, as well as becoming strategy providers themselves and helping other traders in exchange for a fee.

In this way, a less experienced trader can benefit from the expertise of a professional, while the latter can share and benefit from their knowledge.

Not only does copy trading have the potential for profit for both parties - the followers and the providers - but it is also an opportunity for many of them to improve their knowledge and skills in long-term trading, through the observation of strategies.

The $10 million copies affair
For cTrader, we looked at this very unusual case which caused a wave of discussion in the cTrader community and we sought to understand what happened.

One user created a strategy called Relax over a year ago, after investing just $15 as a starting balance. Throughout the year, the user traded with an average return of 200% per month.

Throughout this highly successful year, the strategy attracted $10 million in investments, making money for followers and giving the provider around $1 million in additional revenue through performance fees (very impressive, given the initial investment of $15).

On 5 March 2021, as NFP figures were about to be hit, developers identified unusual activity on the cTrader copy service.

Users were actually queuing up due to follower amount limitations, eager to invest in the Relax strategy, which reached $10 million in follower capital!

The decisive hour for the NFP report approached and things got worse. The strategy was entering a phase of massive downsizing, but it continued to work the same way it had over the past year and a half.

Build a position through a “Grid Trading” strategy and bet on the rebound. Unfortunately for both parties - the supplier and his supporters - the outcome was not what we expected. The NFP numbers were surprisingly good and the market moved in the opposite direction than expected, causing the strategy to stop at 0.

It goes without saying that many were distraught in the wake of the NFP results. Some users even had trouble logging in - which is how overloaded the system was, with users keen to verify their investment (an issue Spotware addressed in a timely manner, however).

Spotware's community management manager - Panagiotis Charalambous - commented: "There has been great volatility today and the specific strategies have traded huge volumes for their followers."

Many orders were rejected by brokers due to lack of liquidity. There isn't much to do in these cases, but our team did the hard work of keeping the servers running and responding to all users' concerns".

Officials said this was the largest investment to date by cTrader Copy, and the world record for copied trades was broken as more than $10 million was invested in a single provider of trading signals.

What does this tell us?
This proves that copy trading is indeed a way to make money, but caution is in order as financial markets are volatile and your risk management should always be a priority.

For suppliers: How to attract more investors?
1. Choose a platform with a cross-brokerage function
2. Be the best to be in the top list
3. Write an easy to understand description of your trading strategy
4. Share your strategy on the different sources
5. Create a website with your strategy

Not only does your cTrader Copy strategy profile provide a great deal of additional information, giving your investors an overview, but it also allows you to present and promote your strategy on any external website using an embeddable code.


Try cTrader with Pepperstone:
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"Anything worth having is worth going for - all the way." - J.R. Ewing

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