Signals, robots and copy trading
What you learn in 3 minutesSignals, robots and copy trading all hand part of a decision to someone else. Each one copies something different, and each one leaves you holding the loss. This lesson shows what you still pay and still risk when the entry is not yours.
Three ways to follow, one bill of 108 KSh per pip
| Step | Amount | Note |
|---|---|---|
| Signal, one standard lot | 108 KSh per pip | One pip on one standard lot of EUR/USD is 10 units of the quote currency. At 1.0850 that is 10 x 108.50 = 1,085 KSh, so one pip is 108.50 KSh, rounded to 108 KSh here. |
| Robot, one standard lot | 108 KSh per pip | The robot places the same size, so the pip value is the same. The robot does not reduce the size unless you set a limit. |
| Copy trading, one standard lot | 108 KSh per pip | Copy trading mirrors the position, so the pip value follows your account size, not the other person's. |
| Stop 20 pips away | 2,170 KSh | 20 pips x 108.50 KSh = 2,170 KSh. This is the amount at risk if the stop is hit. |
| Two losing trades in a week | 4,340 KSh | 2 x 2,170 KSh. The source of the idea does not change this sum. |
Your broker may round the pip value, charge a spread on entry and exit, and add commission or swap. These charges vary between brokers and are not included above.
The mistake people make here
The common mistake is to follow a signal or a robot and then increase the lot size because the idea came from someone else. The size is still your decision, and a larger size multiplies the loss in the same way it multiplies a gain. Before you follow anything, write down the pip value for your chosen lot size and the distance to your stop. If the total at risk is more than a small share of your account, reduce the lot size until it is not.Check yourself
You copy a trade on EUR/USD at 1.0850 with a 0.10 lot size. One pip on one standard lot is 10 units of the quote currency. What is one pip worth on 0.10 lots in KSh?
One standard lot: 10 x 108.50 = 1,085 KSh per pip. On 0.10 lots that is one tenth: 108.50 KSh per pip, rounded to 108 KSh.
The same copied trade has a stop 15 pips away on 0.10 lots. What is the amount at risk in KSh?
15 pips x 108.50 KSh = 1,627.50 KSh, rounded to 1,628 KSh.
A robot opens three trades of 0.10 lots on EUR/USD, each with a stop 15 pips away. What is the total at risk in KSh?
3 x 1,627.50 KSh = 4,882.50 KSh, rounded to 4,883 KSh. The robot chose the entries, but the total risk is still yours.