Understanding Performance in Copy Trading

Profit & Loss (P&L)

What It Means

• How much money you've made or lost
• Shown as a dollar amount and percentage
• Updated in real-time

Example

• You invested $1,000
• Your current value is $1,150
• Your P&L is +$150 or +15%

What's Good?

• Positive is good (you're making money)
• Negative means you're losing money
• 5-10% per month is excellent
• 1-3% per month is solid

Return on Investment (ROI)

What It Means

• The percentage return on your money
• Shows how much you earned compared to what you invested
• Helps compare different traders

Example

• You invested $1,000
• You made $100
• Your ROI is 10%

How to Calculate

• (Profit ÷ Investment) × 100 = ROI%
• ($100 ÷ $1,000) × 100 = 10%

Average Win vs. Average Loss

What It Means

• How much you make on winning trades
• How much you lose on losing trades
• Helps you understand the trader's style

Example

• Average win: +$50
• Average loss: -$20
• This trader makes bigger wins than losses (good)

What's Good?

• Average win should be bigger than average loss
• 2:1 ratio is good (win twice the loss)
• 3:1 ratio is excellent

Drawdown

What It Means

• The biggest drop from your highest point
• Shows how much you lost at the worst time
• Important for understanding risk

Example

• Your highest balance was $2,000
• Your lowest point was $1,700
• Your drawdown was $300 or 15%

What's Good?

• Lower is better
• Under 10% is good
• Under 20% is acceptable
• Over 30% is risky

Win Rate

What It Means

• How many trades made money vs. lost money
• Shown as a percentage
• Example: 60% win rate means 6 out of 10 trades made money

What's Good?

• 50% is average (half win, half lose)
• 60% is good
• 70%+ is excellent
• But high win rate doesn't always mean high profits

Your Portfolio Overview

Total Balance

• Your current total money
• Includes cash and open positions
• Updated in real-time

Total Invested

• How much money you've put in
• Doesn't include profits or losses

Total P&L

• Your total profit or loss
• Shows your overall performance
• Most important number

Active Positions

• How many trades are currently open
• Which traders have open trades
• Current profit/loss for each

Individual Trader Performance

Trader Name

• Who you're copying
• How much you've allocated to them

Allocation

• How much money you gave this trader
• Your investment with this specific trader

Current Value

• What your investment is worth now
• Includes open positions

P&L

• Profit or loss from this trader
• Dollar amount and percentage

Trade History

Date

• When the trade was opened and closed
• Helps you see patterns

Asset

• What was bought or sold
• Stock name, crypto, etc.

Entry Price

• The price when you bought
• What you paid

Exit Price

• The price when you sold
• What you got back

Profit/Loss

• How much you made or lost
• Dollar amount and percentage

Duration

• How long the trade was open
• Hours, days, or weeks

Monthly Performance

What to Track

• How much you made or lost each month
• Compare month to month
• Look for trends

Good Signs

• Positive months more than negative
• Consistent returns
• Steady growth

Bad Signs

• More losing months than winning
• Big swings up and down
• Declining trend

Comparing to the Trader

Your Results vs. Trader's Results

• Your P&L should be similar to theirs
• Scaled down by your allocation
• If very different, something's wrong

Example

• Trader made 10% this month
• You allocated $1,000
• You should make about $100
• If you made $50, check why

Seasonal Patterns

What to Look For

• Do certain months perform better?
• Do certain traders do better in certain seasons?
• Are there predictable patterns?

Use This To

• Plan when to increase allocation
• Plan when to be more careful
• Adjust your strategy seasonally

When to Add More Money to a Trader

Good Signs

• Consistent positive returns for 3+ months
• Win rate above 60%
• Drawdown under 15%
• You're comfortable with their style

How Much to Add

• Increase by 10-20% at a time
• Don't double overnight
• Test the waters first

When to Reduce Money to a Trader

Warning Signs

• 2-3 losing months in a row
• Win rate dropping below 50%
• Drawdown increasing
• Your comfort level decreasing

How to Reduce

• Reduce by 20-30%
• Don't stop completely yet
• Give them one more month
• Then decide to stop or keep

When to Stop Copying a Trader

Red Flags

• 4+ consecutive losing months
• Win rate below 40%
• Drawdown over 30%
• Major change in their trading style
• You're losing sleep over it

How to Stop

• Close all positions immediately
• Or let them close naturally
• Stop receiving new trades
• Review what went wrong

When to Add a New Trader

Good Reasons

• You want to diversify
• You found a trader with great history
• You have extra money to invest
• You want different trading styles

Bad Reasons

• You're chasing big returns
• You're trying to make back losses
• You're copying your friend
• You didn't do research