Copy Trading Explained

platformAlso: Order Replication

Definition

Using software (e.g., Replikanto, TradeCompanion) to automatically replicate trades from one account across multiple accounts simultaneously. A scaling strategy for traders managing many funded accounts with the same strategy.

Explanation

Copy trading software connects to multiple trading accounts through API integrations and mirrors every trade execution in real-time. Traders typically use this when managing 10+ funded accounts to ensure consistent strategy application without manually placing identical trades across each account. The software must be compatible with your prop firm's trading platform and comply with their automation policies.

Example

A trader with 8 funded $100k accounts uses copy trading software to automatically replicate a long ES trade across all accounts simultaneously, scaling position sizes proportionally to each account's balance.

Why It Matters

Copy trading enables efficient scaling across multiple funded accounts without the time constraints and human error of manual replication.

Common Misconceptions

  • Copy trading software guarantees identical P&L across all accounts

    Reality: Slight execution timing differences and varying account balances can create small P&L variations between accounts