How to Test a Copy Trading System Before Subscribing: What to Watch For

21st Jul 2025
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Back when I started exploring automated trading, I was attracted by impressive performance charts and glowing trader stats.

“400% in 6 months.” “Zero losses in 3 months.”

It looked perfect — but it wasn’t.

I learned the hard way that most traders promoting their results don’t tell you how those results were made, what risks they took, or how sustainable the system is. Since then, I’ve tested dozens of copy trading systems — for myself and clients — and I’ve developed a clear checklist of what to look for before you subscribe to anything.

In this guide, I’ll walk you through how to test a copy trading system properly, what red flags to avoid, and how tools like SMARTT’s compound simulator can help you model real-world growth, not just pretty dashboards.

 

Past Performance: Focus on Stability, Not Just Profit

It’s easy to get impressed by high returns. But the most profitable systems aren’t necessarily the most reliable ones. When evaluating a copy trading system, always ask:

         Is the performance consistent over time, or are there extreme spikes and crashes?

         Did the trader make profits through scalable strategies or from a few lucky trades?

         Is there a clear record of how risk was managed?

The best systems show moderate but steady growth, month over month. A 5% return monthly with low volatility is often far superior to a random 40% followed by a 30% loss.

On platforms like SMARTT, instead of relying on individual traders, you can access a curated blend of top performers, updated daily and filtered by actual risk-adjusted results. Learn more on our Copy Trading page.

 

Look at the Drawdown — Not Just the Win Rate

One of the most misleading metrics in trading is the win rate.

You can win 90% of trades and still lose money if your losses are bigger than your wins.

Instead, check:

         Max drawdown: What was the largest drop from peak to trough?

         Recovery time: How long did it take to bounce back after a loss?

         Average loss vs. average win

A system that risks 30% of capital to gain 5% monthly is a ticking time bomb. It might look fine today, but one bad month could wipe it out.

 

Are the Trades Logic-Based or Emotion-Based?

You should be able to spot some logic or consistency in the trading behavior. Does the trader:

         Trade during specific market hours?

         Follow news events or avoid them?

         Use technical patterns or random entries?

The more transparent and rule-based the system, the easier it is to simulate and project performance. Emotional trading, revenge entries, or erratic position sizing are serious warning signs.

In contrast, SMARTT’s system is fully logic-based, combining inputs from top traders, technical signals, and risk filters — creating a structured copy flow that’s easy to track and analyze.

 

Simulate Monthly Returns Before Committing

One of the most practical things you can do before committing real capital is to simulate the system’s returns using realistic numbers.

Let’s say the copy system you’re considering claims to generate 6% monthly on average.

That sounds good, but what does it mean for your capital over time?

Using SMARTT’s compound growth simulator, you can input those numbers and see:

         How fast would your account grow in 6 or 12 months

         What difference does adding or withdrawing funds make

         How small returns compound into meaningful profits over time

 

👉 Test it for yourself using our compound growth simulator, especially if you're planning to start with a small balance and scale gradually.

 

Risk Settings and Capital Control

A good copy trading system should allow you to:

         Adjust lot size or copy ratio based on your risk tolerance

         Set stop-loss limits for your overall account

         Pause or disconnect without penalties

         Keep funds in your broker account

This is especially important if you're just starting. You need the ability to stay in control, even while you're letting others trade on your behalf.

On SMARTT, your capital remains fully under your control — the robot executes trades on your account based on copied signals, but you can pause, cap risk, or adjust anytime.

 

Final Thoughts: Never Subscribe Blindly

Copy trading can be powerful — but only if you choose wisely.

Before subscribing to any system, take the time to analyze its logic, test its claims, and simulate its results. If a system passes those tests, it’s worth considering.

But if all you see is hype, big numbers, and vague promises, step back.

Passive income from trading is possible, but only through active evaluation.

 

👉 Need help choosing the right starting point? Contact us through the Contact Us page; we’re here to guide you.

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categories:Copy Trading

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