A strong historical return is not evidence that a strategy is safe. Use this checklist to inspect both the trader and the system making trades on your behalf. The most important questions are often the ones that are not visible on the performance leaderboard.
1. Broker and custody
Who will be your contractual counterparty? Find the full legal name and regulator of the entity that would accept your account, rather than assuming an international brand holds the same permissions everywhere. Check whether your money is in a trading account at that broker and which withdrawal rules apply.
- Which legal entity opens my account, in my country?
- What permissions, protections and complaint routes apply?
- Can I withdraw cash and stop copying without provider permission?
2. Provider track record
Performance tables can conceal open losses, short history, selective reporting and survivorship bias. Check what the numbers cover and whether they are independently verified or only reported by the platform.
- How long is the complete record, including difficult markets?
- What was the largest drawdown, and how is it calculated?
- Is leverage, position concentration and open risk visible?
3. Copying mechanics
Ask what precisely triggers new trades in your account. Some systems enter only newly opened positions; others can include existing positions. A late start may produce a very different entry price from the provider’s.
- How is position size calculated for my balance?
- Can I set a hard loss limit, pause or close positions myself?
- What happens if the connection breaks or provider account is stopped?
4. Total cost and incentive conflicts
Provider revenue might be related to subscribers, strategy fees, trading volume or broker commercial agreements. These are not necessarily aligned with minimizing losses. Examine explicit and implicit costs together.
- What are spreads, swaps, commissions and performance/provider fees?
- How is the strategy provider paid?
- Is the reviewer or referring website paid for the account?
After answering the questions
If key information is missing, mark it unknown rather than assuming the best. A ranking based on incomplete fee or legal-entity data should not determine your choice. No checklist can make leveraged speculation low-risk.
Forex position size & risk calculator
Change assumptions yourself. This free calculator uses transparent arithmetic; it does not predict a strategy’s future results.
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