Copy Trading
A method where one trader's positions are automatically replicated on another account, banned by most prop firms to prevent coordinated manipulation of their risk books.
What is Copy Trading?
Copy trading is the practice of automatically mirroring the trades of another trader on your own account in real time. If the master trader buys EUR/USD, all connected follower accounts do the same instantly.
Why prop firms ban it
Prop firms ban copy trading primarily because:
- Correlated risk: If 100 accounts all copy the same trader and that trader loses big, the firm absorbs correlated losses across all 100 accounts simultaneously
- Gaming the system: One skilled trader could sell signals and have dozens of people pay challenge fees, funnelling profits from the firm to a single strategy
- Account farming: Bad actors pay one person to pass challenges, then copy their trades across many funded accounts
What's allowed
- Personal automation: Running your own strategy across accounts you own is usually permitted
- Family of accounts: Some firms allow copying between your own accounts explicitly
Detection
Firms actively monitor for highly correlated entries and exits across multiple accounts. Violations typically result in immediate termination of all affected accounts.
How Firms Apply This Rule
FTMO bans third-party copy trading. FundedNext bans it. Virtually all major prop firms prohibit copy trading from external signal providers.
Related Terms
Expert Advisor (EA)
An automated trading script (bot) running on MetaTrader 4 or 5 that executes trades based on pre-programmed rules without manual intervention.
News Trading
A strategy of trading around high-impact economic news events. Many prop firms restrict or ban it due to extreme volatility and slippage risks.
Evaluation Phase
The trading test period(s) a trader must pass — hitting profit targets while respecting all risk rules — before receiving a live funded account.