Copy trading is a form of online trading that enables individuals wanting to invest in the financial markets to automatically copy the trading activity of strategy providers. To be able to do that, an investor needs to set up a copy trading account with WB Invest and pick a strategy provider to copy.

Copy trading offers investors who lack either the time, knowledge or trading experience the chance to enter the markets by leveraging the trading expertise of others. They can follow and mirror the trading strategies of trading experts, known as Strategy Providers, directly in their copy trading accounts. Investors should keep in mind that copy trading involves risk.

They are advised to carefully review the performance data and risk management strategy of the Providers they decide to follow.

A Strategy Provider or Provider is a trader with a high-performing strategy which they share with other traders known as Followers. Sharing the strategy allows Followers to automatically copy all of the Providers’ trades in their own copy trading accounts. Providers share a short presentation of their trading strategies and make special offers for Followers to subscribe to. In these offers, they present the compensation or Performance fee they require in exchange for getting copied.

A Follower is an individual who copies the trading activity of a Provider in their own Follower account. For each Follower account, only one Provider can be followed or in other words, only one “subscription” is allowed. Followers can adjust copying rules and modify risk management settings for their subscriptions. (Note: To copy multiple Providers at the same time, Followers can open more than one copy trading follower accounts)

A Performance Fee is a percentage of a Follower’s profitable trading results paid to the Provider by the Follower as part of their subscription. The performance fee is paid only when the profit of the Follower’s subscription goes higher than the most recent High Water Mark (HWM) – the Follower subscription’s last recorded maximum level or maximum value of profit.

Profit and Performance Fee are calculated on a weekly basis by subtracting the equity of the previous week from the equity of the current week. Equity is your account balance plus or minus the unrealized profit (or loss) of all your open positions.

Each Provider sets their own Performance Fee percentage as part of the offer they require Followers to subscribe to. The Performance Fee formula is always the same and is as follows: Performance fee = Subscription’s Profit x Fee %
For example:
Performance Fee = 10%

Week 1 PnL = $400 → $40 Performance fee

Week 2 PnL = -$200 → No Fee ($400 – $200 = $200 < $400 HWM)

Week 3 PnL = $300 → $10 Performance fee ($400 – $200 + $300 = $500; $500 – $400 = $100)

Copy Trading may be unavailable in your region. Go to your Client Portal to check the availability of the trading feature.