Copy Trading Warning: The Truth About Misleading Percentage Gains

High percentage gains like 1000%, 2000%, or even 3500% look impressive at first glance. They instantly catch attention and make a signal provider appear extraordinary.

But here’s the truth:

Most of these numbers are misleading — and new followers will never experience the same results.

The Reality Behind Massive Percentage Gains

Huge percentage returns often come from:

  • a very small initial deposit (often €100–€500)
  • extremely aggressive trading during the early months
  • high leverage and high risk that the trader no longer uses today

Turning €500 into several thousand is possible —
but it has little to do with the performance that new followers will experience on a larger account.

The “Deposit Trick” Used by Many Platforms

Many copy trading platforms calculate total performance based on the original deposit.

This means:

  • If a trader starts with €500 and grows it to €20,000,
  • the platform will always show thousands of percent in lifetime returns,
  • even if the trader now trades with very small lot sizes and minimal risk.

The lifetime return reflects the tiny starting balance — not the balance you are copying today.

This creates unrealistic expectations.

Why New Followers Will Not Get the Same Results

The gap becomes even larger when traders:

  • do not scale their lot sizes as their account grows
  • keep trading “small” compared to their current equity
  • reduce risk to protect a bigger balance
  • slow down after they have something to lose

So the account might show:

  • 3500% lifetime return
    but in reality:
  • +10% last year
  • 0.5–1% per month recently

These recent numbers are normal, healthy returns for a low-risk account —
but they have no connection to the massive lifetime gains from earlier high-risk phases.

Two completely different realities —
but the platform only shows one metric.

A Real-World Example

A trader displays +3500% total gain.

Sounds incredible.

But after analyzing:

  • last full year: +10%
  • recent months: 0.5–1% per month
  • lot size unchanged despite 5–10× larger equity

Why?

Because:

**The massive early gains came from a tiny account and aggressive trading.

The current strategy is conservative and low-risk — and not scalable for followers.**

The lifetime percentage is a historical artifact, not a reflection of actual recent performance.

How to Evaluate Percentage Gains Properly

When analyzing any signal provider, check:

Recent monthly returns

What happened in the last 3–12 months?

Lot size scaling

Has the trader adapted position size as the account grew?

Drawdown behavior

Was the early performance caused by high risk?

Risk per position

Is it appropriate for the current account size?

Performance on real balance

Not on a €200 beginner balance.

Never rely solely on lifetime performance.

Key Takeaways

  • Huge lifetime returns often come from small deposits
  • New followers will not experience the same returns
  • Recent performance matters more than all-time stats
  • Drawdown, risk, and position sizing tell the real story
  • Big historical returns often reflect past high risk, not consistency

FAQs

Why are lifetime percentage gains misleading?
Because they’re calculated from the original small deposit. Early aggressive gains distort the long-term picture.

Should I ignore total percentage return?
No — but it should never be the deciding factor. Recent performance matters far more.

Can a trader with 2000–3000% lifetime gain still be good?
Yes, but new followers will not experience the historical percentage gains, because those came from early high-risk phases

What should I look at instead of total return?
Monthly returns, drawdown, risk behavior, lot sizing, and trade consistency.

Why do traders stop scaling their lot sizes?
Because a larger account requires lower risk. This slows down performance for new followers — which is normal and healthy.