Copying Trades vs Copying Strategies: What’s the Real Difference?

Copying Trades vs Copying Strategies: What’s the Real Difference?

Contents

Introduction

Copy trading has gained wide popularity in recent years, both in cryptocurrency and traditional markets. The reasons are apparent: low entry threshold, high automation, and quick access to results. Many beginner investors choose this format to save time on learning. However, a key question arises: what is more effective in the long run — copying the trades of individual traders or using trading strategies?

What is Copying Trades

trades

Copying trades means that the actions of a chosen trader are automatically repeated in the subscriber’s account. If the leader opens or closes a position, the same actions are performed on the investor’s account. The position size is scaled to their balance. Essentially, this creates a direct dependency on the decisions of one person.

How Copy Trading Works

The technical implementation of copying trades usually looks like this:

  • The investor selects a trader on the platform.

  • Defines the share of capital and risk level.

  • The platform automatically repeats entries and exits.

The result depends on the speed of execution and synchronisation with the leader’s actions. This approach is straightforward to set up, but it carries certain limitations.

Advantages and Disadvantages of Copying Trades

Pros:

  • Quick start without an in-depth study of theory.

  • Automation of most processes.

  • Ability to track the leader’s trade history.

Cons:

  • Complete dependence on the decisions of one trader.

  • Risk of delays and slippage in order execution.

  • Possible changes in the leader’s trading style without notification.

  • High sensitivity to cryptocurrency market volatility.

Thus, copying trades allows a fast entry into trading, but its effectiveness is directly linked to the chosen trader.

What are Copying Strategies

strategies

Copying strategies are based on following a pre-defined trading logic. The investor connects to a system of rules where entry and exit conditions, as well as risk levels, are defined in advance. This can be either an algorithmic model or a manually developed approach. Here, the focus is not on the trader’s personality but on the system.

How Strategy-Based Trading Works

Trading based on strategies revolves around fixed rules:

  • The investor selects a strategy on the platform.

  • Adjusts the share of capital.

  • The system automatically executes the strategy signals (entry, exit, risk).

This format most often demonstrates resilience over the long term, as it reduces the influence of emotions and subjective decisions.

Pros and Cons of Copying Strategies

Advantages

Disadvantages

Systematic and predictable

Less flexibility: algorithms do not always account for rare events

More stable long-term results (according to data from major platforms)

Requires trust in the chosen system and infrastructure

Minimal influence of emotions

The effect is noticeable only in the long run, not in every single trade

Thus, strategies provide a structured approach but require greater trust in the system and readiness to think long-term.

Comparison of Trades and Strategies

To better understand the differences, it is worth considering them together:

Dependence on a Person

  • Trades: The result is directly linked to the leader’s actions. If the trader changes their style or takes a break, the subscriber automatically feels the consequences.

  • Strategies: Decisions are made based on rules, which reduces the risk of sudden changes.

Influence of Time

  • Trades: Effectiveness depends on the current market conditions and the trader’s activity.

  • Strategies: Designed to work over the long term, where consistency is key.

Psychology and Discipline

  • Trades: The leader’s emotions (such as fear or overconfidence) may affect the subscriber.

  • Strategies: Discipline is built into the algorithm, such as fixed risk per trade or a ban on increasing it after a series of losses.

Thus, trades provide operational speed, while strategies ensure stability.

What Should an Investor Choose

investor

The choice largely depends on goals and level of experience.

  • For beginners, copying trades can be a straightforward starting point, as it helps to see real results and understand the trading mechanics quickly. However, it is essential to note that this approach does not guarantee long-term sustainability.

  • More experienced investors often choose strategies, as their systematic nature reduces the impact of emotions and allows for building a long-term plan.

Overall, trades may be helpful for short-term market familiarisation, while strategies are better suited for forming a long-term foundation.

Combining Approaches

In practice, many investors combine both methods:

  • They use strategy copying as the basis of the portfolio.

  • They complement it by observing the trades of individual traders for learning and analysis.

Today, these opportunities are expanding thanks to specialised services, where investors can connect directly to the best strategies of top traders. This simplifies the selection process, enabling the creation of a portfolio that combines the stability of proven models with the flexibility of individual analysis.

Conclusion

Copying trades and strategies represents two different investment formats. The first option offers quick entry and practical experience, but it depends on the chosen leader. The second is based on systematisation and more often demonstrates sustainable long-term results.

For investors, it is essential to recognise that short-term effectiveness and long-term stability often do not align. The best results are achieved through a balanced approach or its competent combination.