How Copy Trading Works

Copy trading lets you automatically copy trades from experienced traders. When they buy or sell, you buy or sell the same thing. Here's how it works on PiTrade.

The Copy Trading Process

Copy trading is simple and follows 4 easy steps:

  1. Find a Trader to Copy – Browse traders and check their performance history.
  2. Decide How Much Money to Use – Choose how much of your money you want to use for copying this trader.
  3. Start Copying – Once you start, the system automatically copies their trades in real time.
  4. Watch and Adjust – You can add more traders, change how much money you're using, or stop copying anytime.

Real-Time Trade Replication

How Trades Are Copied

When you copy a trader on PiTrade, your account automatically copies their trades. Here's what happens:

Step 1: Trader Makes a Trade

  • The trader you're copying buys or sells something
  • PiTrade instantly detects this trade

Step 2: Your Trade Happens Automatically

  • Your account gets the same buy or sell signal
  • The trade happens right away at the current price
  • You buy or sell the same thing as the trader

Step 3: Your Position Matches Theirs

  • You now own the same asset as the trader
  • But the amount you buy is smaller, based on how much money you allocated
  • If they buy 100 shares, you might buy 10 shares (depending on your money)

Simple Example

Let's say you give $1,000 to copy a trader:

  • Trader buys: 100 shares of Stock ABC
  • You buy: 10 shares of Stock ABC
  • Why?: Your money ($1,000) is 1/10th of their money ($10,000), so you buy 1/10th of what they buy

Capital Allocation

Understanding Capital Allocation

Capital allocation is just deciding how much of your money you want to use for copying a trader.

How It Works

  • You choose an amount (like $1,000 or $5,000)
  • All trades are scaled based on this amount
  • If the trader buys 100 shares, you buy a smaller amount based on your money

You Can Change It Anytime

  • Increase your amount if the trader is doing well
  • Decrease your amount if you want to take less risk
  • Future trades will use the new amount

How the Math Works

It's simple: your trade size = (your money ÷ trader's money) × trader's trade size

Example:

  • Your money: $2,000
  • Trader's money: $10,000
  • Trader buys: 50 shares
  • You buy: (2,000 ÷ 10,000) × 50 = 10 shares

Automatic Execution

What Happens Automatically

Once you start copying a trader, everything happens on its own:

When They Buy, You Buy

  • The trader opens a position (buys something)
  • Your account automatically gets the same signal
  • Your trade happens right away at the current price
  • Your position opens with the right amount based on your money

When They Sell, You Sell

  • The trader closes their position (sells something)
  • Your account automatically sells too
  • Your position closes at the current price
  • You make or lose money based on the price change

Partial Closes

  • If the trader closes half their position, you close half of yours
  • Everything stays balanced between your account and theirs

How Fast Is It?

  • Speed: Trades happen in seconds
  • When: During market hours (when the market is open)
  • Delays: Very minimal - almost instant

Monitoring & Adjustments

Watch Your Trades

PiTrade shows you everything happening with your copied trades:

See Your Performance

  • View all your active trades
  • See how much you're making or losing right now
  • Compare your results with the trader's results
  • Track your total profit or loss

Trade History

  • See all trades that were copied
  • Check the buy and sell prices
  • Look at the history of each trader you're copying
  • Learn from past trades

Get Alerts

  • Get notified when trades happen
  • Get alerts if prices move a lot
  • Get updates if a trader's performance changes
  • Get warnings if something goes wrong

Make Changes Anytime

You have full control and can change things anytime:

Copy More Traders

  • Add another trader to copy
  • Copy multiple traders at the same time
  • Spread your money across different traders
  • Reduce risk by not putting all eggs in one basket

Change Your Money Amount

  • Give more money to a trader who's doing well
  • Give less money to a trader who's not doing well
  • Change it whenever you want

Stop Copying

  • Stop copying a trader anytime
  • Close all their trades or keep them open
  • Start copying someone else

Pause Copying

  • Temporarily stop copying without closing trades
  • Resume later when you're ready
  • Useful if the market is crazy or you need a break

Key Takeaways

  • Copy trading automatically copies trades from experienced traders
  • Trades happen in seconds with almost no delay
  • Your trades are automatically sized based on how much money you give
  • You can watch everything and make changes anytime
  • Check your trades regularly and spread your money across different traders

Next Steps

  1. Risk Management – Protect your money
  2. Understanding Performance – Track your results

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