Now I don’t think that curtailing margin is going to make much difference (if any) to trader performance, and the leading CFD and spread bet companies in the UK already prove an excellent service - but that’s maybe a subject for a later date.
So, a small profit. I was following my first trader at the lowest level possible in terms of risk - 0.5X. You can see just how small the size of the trades being copied are from this screenshot of the open positions on the account. - you can click the image to maximise it.
A word about the risk aspect. As I now have two traders I am copying, the risk is automatically adjusted. If I was following them both “1x”, because there are two on my account, this gets divided by 2. So, if they do a trade that risks for example 2% of their account, it will be mimicked on my account reflecting a risk of 1% - half the amount. I am going to make a couple of adjustments now to the risk size of these traders for my account by clicking “Settings” next to their name. First of all Janhe.
That’s it. I still have the ultimate stop loss on my account if the balance falls to an amount predetermined by me - more on that in the first blog.
If you would like to try out copy trading for yourself, you can open an account here - and play around with a demo account for a few weeks to get a feel for how it works to get comfortable. If you have any questions, feel free to get in touch or leave a comment below.