What is copy trading?
At the heart of eToro’s rendition of social trading lies its execution of the copy trading concept. Investing funds in replicating a trader’s strategy is remarkably straightforward.
Select an investor you want to copy
Hit the COPY button
Choose how much to invest
Explaining the rationale behind the copy trading decision is even more straightforward. Firstly, you’ll be automatically investing like an experienced individual with at least one qualification (at the Elite level or higher), who engages in trading professionally. It’s crucial to note that you’re mirroring the trades they execute with their own capital. This distinction is significant because, unlike conventional financial advice, the trader’s success is directly tied to yours.

Tankwa Karoo National Park, South Africa
Copy trading comes at no additional cost*, and once the copying process is initiated, there’s no need for further action on the part of the copiers, it all unfolds automatically. If you want more detailed information, please refer to the relevant eToro page.
*While there is no specific copy trading fee, it’s important to note that if the trader engages in activities incurring fees, such as overnight borrowing for leveraged assets, those fees will be applied to your trades as well. This is not different from the copiers opening the same trade independently from the copy
What to know about copying me
Is copying me the same as copying anyone else on eToro? The answer is no, and here are a few reasons why:
- While I won’t equate copying my trades to jumping off a plane, there comes a point where you need to take a leap of faith and trust that the person you’re copying has your best interests in mind. Stick with the copy even when faced with a sea of red. This is a common occurrence and actually reflects my trading strategy, which has proven effective over time.
- I recommend a minimum copy of $300 to ensure that even if I open positions at 0.5% of the portfolio, they will be replicated in your copy*.
- If you’re looking to copy me for a quick profit without a solid understanding of market timing, it’s advisable you reconsider. I’m not just a long-term investment, nor am I solely a short-term one. While there may be periods of stagnation or even slight losses, the medium and long-term trends have consistently shown upward growth throughout the majority of my eToro career.

15,000 feet over Queenstown, New Zeeland
- Keep the copy loss limit at the default level (5%) because trading on volatility can expose you to sudden drops in unrealised equity (which is why my drawdown numbers may be higher than other traders). I generally avoid closing positions at a loss unless it’s a last resort, allowing the realised equity to continue growing even if the unrealised temporarily drops. This underscores the importance of not risking accidentally being removed from the copy because of a too high copy loss limit.
- I’ve established a robust working capital of approximately $100,000, and while I don’t anticipate needing to add funds to the portfolio, unforeseen circumstances may arise. In such cases, it’s recommended to match any additions I make to avoid the system closing positions if the copy requires rebalancing (for more on rebalancing, refer to this post)
- Occasionally, if there’s a good opportunity, I purchase shares, but this typically constitutes no more than ~10% of the portfolio, if not less.
*While the minimum position limit on eToro is $1, my standard smallest position is 0.5% of my portfolio, technically amounting to $200. However, having a bit of margin doesn’t hurt.
And about adding to the copy

Occasionally, you might wish or need to add funds to the copy, and in such instances, there are a few considerations to keep in mind:
- Once again, it’s advisable to add increments of $300 or multiples thereof.
- For those who consistently copy, I recommend gradual increments over a substantial single addition. This approach helps maintain a balanced investment and enhances risk management.
- The grid strategy comes into play once more. It’s preferable to add funds when the UK100 index is outside zone I (refer to the strategy page for more on zones). While the index may be in zone I, generating profits over an extended period, you might feel like you’re missing out on potential gains by keeping money out of the copy. Since I manage this portfolio for absolute return, aiming to generate profits consistently, my perspective is “better money in than money out.” However, ultimately, it’s your money, and the decision is yours to make.
Withdrawing money or exiting

Travelling in Patagonia in 2016
There was a time when withdrawing funds and exiting the copy presented more complexities, but thanks to the rebalancing upgrade on the eToro platform (details provided in this post), the process for both actions is now unified. Considering my trading style and the nature of this copy, withdrawing funds necessarily generates a loss, let’s think of it as an exit charge.
Given my practice of closing positions only when they’re at least 1% or more in profit, and not when they are loosing money, as well as holding onto losing positions until they turn profitable, at any given time my portfolio is in the red. The extent of this ranges from approximately -3% when the UK100 index hovers around the midpoint to a more substantial -6% or even -15% when the index reaches levels III or V in the grid.
Therefore, since withdrawing money while staying synchronized involves closing some positions at a loss, the opportune time to do so is when the index is at or around the midpoint.
Regrettably, this is a drawback inherent to the strategy. To use a metaphor it’s akin to cycling with feet secured to the pedals of the bicycle. While continuous cycling poses no issues and, in fact, having the feet tied to the pedals enhances the cycling performance, stopping outside a safe landing zone, where there is something to lean onto, could result in significant bruising.
Exiting the metaphor, the most secure approach, if cash is required, is to withdraw or exit when the index is situated around the midpoint of the strategy. Opting for any other alternative would diminish the overall profitability of the copy.
The only way to make sense out of change is to plunge into it, move with it, and join the dance.
Alan Watts