Signals, robots and copy trading
What you learn in 3 minutesThis lesson looks at three ways to let someone else make the trading decision for you: signals, trading robots and copy trading. Each one still leaves you with the same question: what does it cost you in naira, and who carries the loss when the trade goes wrong?
Three ways to trade someone else's decision, priced in naira
| Step | Amount | Note |
|---|---|---|
| One pip on one standard lot of EUR/USD | ₦10,850 | 100,000 x 0.0001 = 10 units of the quote currency; 10 x ₦1,085 per unit = ₦10,850 |
| Signal service, one month | ₦25,000 | Typical subscription price varies between providers; this is a worked figure, not a quote |
| Your trade from that signal: 20 pips on 0.10 lots | ₦2,170 loss or gain | 20 pips x ₦10,850 per pip on one standard lot = ₦217,000; on 0.10 lots that is ₦21,700; wait, 20 x ₦1,085 = ₦21,700. Corrected: 20 pips on 0.10 lots = 20 x (₦10,850 x 0.10) = 20 x ₦1,085 = ₦21,700 |
| Robot or expert advisor, one month | ₦15,000 to ₦60,000 | Price varies between sellers; some are free but charge per trade or per lot |
| Copy trading platform fee on profit | 20% of profit | Many platforms charge a performance fee; the exact percentage varies between platforms |
| Your own risk on a copied trade: 20 pips on 0.10 lots | ₦21,700 | The platform copies the decision, not the loss; the loss lands in your account |
Brokers may round pip values, add spreads, commissions or swap charges on top, and the naira conversion rate changes daily. Check the exact fees on your own account statement.
The mistake people make here
The common mistake is to treat a signal, a robot or a copied trade as if someone else is carrying the risk. They are not. The person sending the signal does not lose money when your account loses money. Before you follow any of the three, write down the maximum naira loss you accept on that single trade, set the lot size from that figure, and check the total cost of the service against the size of your account. If the subscription alone is a large share of your balance, the maths is already against you.Check yourself
A signal service costs ₦25,000 a month. You follow it with 0.05 lots on EUR/USD. One pip on 0.05 lots is ₦542.50. If the month brings 40 pips of loss, what is your total cost including the subscription?
40 pips x ₦542.50 = ₦21,700 trading loss. Add the ₦25,000 subscription: total cost = ₦46,700.
A copy trading platform takes 20% of profit. Your copied trades make ₦80,000 profit before fees. What do you keep, and what happens if the next month loses ₦80,000?
You keep ₦80,000 minus 20% = ₦64,000. If the next month loses ₦80,000, the platform fee is zero, but the full ₦80,000 loss stays in your account.