Is the forex market large enough for copytrading?

External question — Personal Finance Stack Exchange Author: Christian Original post: https://money.stackexchange.com/questions/79453 License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Let's say I have a strategy where I take 2 trades at the same time every day. With 1:1 risk to reward ratio, and the strategy works 60% of the time. Let's say I share my picks every day with 10, 20, 100, 500 people and they all take the same trades around the same time. It's all fun and good when we're trading microlots, but what if we're all trading 100 lots? Or 1,000? Could that actually change the market? Obviously, this will depend on the pair, but let's say I'm trading the EUR/USD and USD/JPY. Am I completely foolish in even asking?

External answer — Personal Finance Stack Exchange Author: Victor Original post: https://money.stackexchange.com/a/79460 License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/ Adaptation: HTML converted to plain text; contact email addresses removed. The FX market is the most liquid market, especially the EUR/USD, so no trades you and some 100 or so followers do will move that market. A bigger concern is your 1:1 reward to risk with only 60% anticipated success rate, you will definitely loose money with this system. A small change in your success rate with a number of consecutive losses and you will be making losses. You need a much larger reward to risk ratio to be successful.

External answer — Personal Finance Stack Exchange Author: Sunuba Original post: https://money.stackexchange.com/a/79472 License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Let's say I have a strategy where I take 2 trades at the same time every >day. With 1:1 risk to reward ratio, and the strategy works 60% of the time. Out of 100 trades, it is just almost impossible to success 60 trades, it is gonna be much less than 60, it is a fact. And having a 1:1 RRW, even though you achieve 50 trades out of 100, it will be a break even if you are lucky enough, so as it is mentioned before you will loose money. The suggestion is to increase RRW ratio, because anyway having over 50% successful trades is a work of a hero. I do not say it is not possible, but obviously you are on the wrong way by setting such RRW and success rate. Let's say I share my picks every day with 10, 20, 100, 500 people and they all take the same trades around the same time. It's all fun and good when we're trading microlots,but what if we're all trading 100 lots? Or 1,000? Could that actually change the market? Obviously, this will depend on the pair, but let's say I'm trading the EUR/USD and USD/JPY. No single person or persons in the world are able to affect the trade direction, so it is not a problem. Am I completely foolish in even asking? No, you are not.