Thanks, I think this is one of the most important questions to ask before trying copy trading.

For me, the biggest danger is forgetting that you are still taking the trader’s risk, not just copying their profits.

Leverage is probably the first thing I would pay attention to. With futures, leverage can make both gains and losses much larger. A trader might show a great ROI. But if that result comes from aggressive leverage one bad move can turn into a very large loss very quickly.In extreme cases the position can be liquidated. That is why I would never look at ROI without also checking the trader’s drawdowns and how aggressively they trade.

The other big risk is that the trader can simply change.

Maybe they traded conservatively for months, then suddenly started taking much larger positions or using more leverage. If you are still copying them automatically your risk changes too.

This is why I mentioned in the post that copy trading is automated, but it should not mean completely forgetting about the trader. I would still check their activity from time to time and ask myself: Would I still be comfortable copying this person if I were making these trades myself?

There is also something else people sometimes overlook. A trader can have a very good history and still go through a bad period. Past performance does not guarantee that the same strategy will continue working especially when market conditions change.

So personally I would not treat copy trading as “find a good trader and leave it running forever” I see it more as choosing someone whose risk level fits you, starting small and continuing to monitor whether their behaviour still makes sense.

And if losing the amount you allocate would cause you serious financial stress, I would not put that money into copy trading in the first place.

The convenience is real but the risk is real too. That is probably the most important thing to understand before starting.