Copy Trading Indexes Guide
Understand the performance metrics, risk indicators, and stability indexes that power our copy trading platform. Make informed decisions with comprehensive data analysis.
What is the Overall Copy Index?
The Overall Copy Index is a comprehensive metric that measures the health and stability of our entire copy trading ecosystem. It combines multiple factors to provide a single score representing market conditions and trader quality distribution.
Calculation Components
Index Interpretation
Return on Investment (ROI)
Calculation Formula:
Measures the percentage return generated on the initial investment over the trading period.
Performance Ranges:
Win Rate
Calculation Formula:
Percentage of trades that resulted in profit. Higher win rates indicate more consistent performance.
Quality Benchmarks:
Sharpe Ratio
Calculation Formula:
Measures risk-adjusted returns. Higher values indicate better returns per unit of risk taken.
Risk-Adjusted Performance:
Outstanding risk-adjusted returns
Solid performance with reasonable risk
Consider risk vs. reward carefully
Maximum Drawdown
Definition:
The largest peak-to-trough decline in portfolio value during the trading period. Lower values indicate better capital preservation.
Important: High drawdowns can indicate significant risk exposure and potential for large losses.
Risk Assessment:
Comprehensive Risk Scoring
Our risk assessment combines multiple factors to provide a holistic view of each trader's risk profile. The scoring system ranges from 1 (lowest risk) to 10 (highest risk).
Risk Components & Weights
Price movement consistency
Maximum loss periods
Risk-adjusted returns
Activity level impact
Risk Categories
Conservative approach, stable returns
Balanced risk-reward profile
Aggressive strategy, higher volatility
Extreme volatility, significant risk
Review System
Follower Metrics
Quality Indicators
Example 1: High-Performance Trader
Performance Metrics:
Analysis & Recommendation:
✅ Excellent risk-adjusted returns
✅ Low maximum drawdown indicates good risk management
✅ High win rate shows consistency
✅ Suitable for: All investor types
Recommendation: Strong candidate for copy trading with appropriate position sizing.
Example 2: Moderate Risk Trader
Performance Metrics:
Analysis & Recommendation:
✅ Good overall performance with solid returns
⚠️ Moderate drawdown requires position management
✅ Decent win rate shows reasonable consistency
✅ Suitable for: Balanced and moderate risk investors
Recommendation: Good choice for diversified portfolios with proper risk management.
Decision Framework by Investor Type
Conservative Investors
• ROI: 10-30% target
• Max Drawdown: <15%
• Risk Score: 1-4
• Sharpe Ratio: >1.5
• Win Rate: >70%
Balanced Investors
• ROI: 20-60% target
• Max Drawdown: <25%
• Risk Score: 3-6
• Sharpe Ratio: >1.0
• Win Rate: >60%
Aggressive Investors
• ROI: 40%+ target
• Max Drawdown: <40%
• Risk Score: 4-8
• Sharpe Ratio: >0.8
• Win Rate: >50%
Update Frequency
Data Quality Assurance
Automated Validation
Real-time data integrity checks
Anomaly Detection
Statistical outlier identification
Historical Verification
Cross-reference with multiple sources
Manual Review
Expert analysis for edge cases
Our team is here to help you make the most of our analytics and indexes. If you have questions about specific metrics or need guidance on trader selection, don't hesitate to reach out.