Question 1

What makes a good trader to copy?

Accepted Answer

Sharpe Ratio above 1.0, Max Drawdown under -30%, and at least 12 months of consistent performance. These metrics reveal skill, not luck.

Question 2

How do I avoid losing money copy trading?

Accepted Answer

Ignore follower counts and short-term gains. Focus on Maximum Drawdown—it shows the worst loss you'll experience when copying.

Question 3

Why are high returns dangerous?

Accepted Answer

Returns over 100% annually usually require extreme leverage. One bad move can wipe out your entire investment.

Question 4

What's the best metric to compare traders?

Accepted Answer

Sharpe Ratio. It measures returns relative to risk, letting you compare traders fairly regardless of their strategy.