What is Copy Trading Analytics

Copy trading, also known as Syndicate Trading, is a well-established trading techniquein a broker’s trading landscape that can generate significant trading volumes. By subscribing to another trader’s signal, a trader can execute trades whenever the signal provider does. This allows novice traders to benefit from the expertise of more experienced traders, potentially increasing their chances of success in the market. 

The challenge brokers’ face

Sometimes, the number of followers of a signal can be so large that it presents a significant risk management challenge for a broker. This is particularly true when these trades are being warehoused, as the sheer volume can become difficult to manage effectively. 

While brokers are often aware that copy trading occurs on their platforms, they tend to have little insight into the identity and size of these groups. This lack of knowledge can make it challenging to assess and mitigate risks adequately. Without detailed information on who is participating in these trades and the magnitude of their collective actions, brokers are left in a precarious position, trying to balance the benefits of offering copy trading services with the inherent risks involved.

Copy Trading Detection can be Complex

Detecting groups of copy traders is not always easy. Copy traders may not always trade simultaneously. There may be delays between when the originating trader trades and when each copy trader places their trade.

Additionally, a trader who copies trades may not always have copy trading enabled. Traders who copy trades may also place their own, independent trades at any time.

Considering these factors, along with the fact that behavior can vary across different symbols and change in real-time, it’s clear that a sophisticated suite of analytics is needed to track copy traders.

Tapaas Approach to Copy Trading Analytics

Tapaas provides a comprehensive set of analytics and alerts for copy trading, helping brokers effectively manage risk on their trading platforms.

A number of Tapaas’s dashboards are designed to allow the users to Identify symbol bursts within a specific, user-defined time period. It also allows users to detect accounts that are trading in concert with each other, and identify the symbols they are trading.

Additionally, Tapaas enables brokers to set up customized alerts for various trading activities. These alerts can be tailored to notify brokers when large volumes are being transacted in a symbol on the B book over a very short period and shows the composition of those trades by account.

Our interface is very user-friendly fed by powerful analytics capabilities which makes it an essential tool for brokers aiming to enhance their oversight and decision-making processes.