Before you follow a signal provider, check these
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A practical vetting checklist for copy-trading providers: data source, record length, drawdown, style and fee terms.
Choosing the provider is the biggest decision in copy trading. A glance at recent returns is not enough — complete this checklist.
The vetting checklist
- Data source: where do the numbers come from — live data, an official report, or the provider’s own claim?
- Record length: how many months? A short record in a calm market says little.
- Drawdown: how deep was the largest one, and how long did recovery take?
- Style: manual or algorithmic? Higher or lower risk? Separate them with the style filter.
- Terms: fees, minimum capital and copy-stop rules.
Use the compare page to place several accounts side by side, and read the choosing-a-manager guide.
Frequently asked questions
How many months of record is enough? There is no magic number, but a short record taken in a calm market says little. Watch how the provider behaved in a real drawdown.
Does a negative return mean a bad provider? Not necessarily. Losses are part of markets; what matters is the risk taken and how it was managed.
How many providers should I follow? Diversification makes sense, but each addition means another full vetting. Match the count to your review capacity.
How long a provider track record is enough? There is no rule of thumb, but measure any record on two axes: time length and trade count. A long, thinly-traded record and a short, heavily-traded one are both misleading. More important than either is the variety of market conditions in it: a record that has seen only one market regime has not been truly tested.
Summary
Vetting a signal provider is vetting an account manager: data source, behaviour, terms. For the full framework read the choosing-a-manager guide, and to see risky patterns check SANJESH.
Five steps to vet a provider
- Find the data source: live, official, or self-declared?
- Check the record length and the largest drawdown
- Separate the style with filters
- Read fee and copy-stop terms
- Put at least two options side by side
Several accounts on one page: See it.
Compare the track record, drawdown and costs of PAMM, MAM and copy-trading accounts, with the source and time of every figure.
Review and compare accounts Calculate scenarios and costsSubmit a verifiable track record so investors can review it against transparent criteria.
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