If you are going to be a serious Copy Trader, you need to know this

# Why Autoscaling Is Dangerous in Copy Trading and How to Use Multipliers Safely

## Summary

In this video, Alex from Expert Forex warns traders about the risks of using autoscaling when copy trading and advocates for the use of multipliers instead. Copy trading allows one to automatically replicate trades of successful signal providers, but many brokers set autoscaling as the default option, which can dangerously increase risk exposure. Autoscaling adjusts trade sizes proportionally based on account balances, which can lead to excessive lot sizes and margin calls, especially when following multiple accounts. In contrast, the multiplier strategy fixes trade sizes as a multiple of the original trade, providing better control over risk. Alex explains why autoscaling disrupts delicate profit recovery mechanisms in trading strategies and offers practical advice on when and how to safely scale your copier account. The underlying message is that understanding how copy trading settings work is critical to avoid substantial losses.

## Highlights

- [00:00:41] ⚠️ Autoscaling is the most commonly used, but it significantly increases risk by automatically scaling trade size to your account relative to the signal provider’s account.
- [00:02:00] 🔍 Multiplier sets a fixed multiple of the original trade size, allowing traders to control exposure exactly.
- [00:04:34] 📈 Autoscaling can triple risk exposure if your account is larger than the signal provider’s, leading to larger lots than expected.
- [00:06:34] 💥 Following multiple accounts with autoscaling multiplies risks and increases margin requirements, often causing margin calls.
- [00:08:33] ⚖️ Autoscaling disrupts profit recovery strategies (pruning and basket closure), often leading to losses due to misaligned trade sizes.
- [00:09:51] ⏳ Best scaling approach: manually increase your multiplier after significant gains (~20%) and only when no trades are open, preferably over weekends.
- [00:10:32] 💡 Many traders lose thousands using autoscaling without understanding its impact—education on these mechanisms is essential to preserve capital.

## Key Insights

- [00:01:23] ⚠️ **Autoscaling is the Default but Dangerous:** Brokers and platforms often default to autoscaling, convincing many traders to adopt it unwittingly. This default setting increases trade sizes based on account size ratios, which can unintentionally raise risk levels drastically without traders fully realizing it.

- [00:02:41] 🔄 **Difference Between Multiplier and Autoscaling:** The multiplier simply applies a fixed ratio to reflect your desired exposure in relation to the signal provider’s trade size, e.g., a 2x multiplier doubles the lot size. Autoscaling dynamically adjusts lot sizes relative to account balances—a concept that might sound safe but actually leads to fluctuating and unpredictable risk and profit/loss outcomes.

- [00:04:34] 📊 **Autoscaling’s Impact on Risk Exposure:** If the follower’s account is three times larger than the signal provider’s, autoscaling triples the lot sizes for every copied trade. This cubic scaling means a trader who thinks they are mirroring the provider’s trades closely might suddenly be exposed to triple the risk, which can amplify losses severely.

- [00:06:34] ⚠️ **Complications Multiply When Following Multiple Accounts:** When copying multiple traders, autoscaling triples each trade size independently for each account, increasing total exposure exponentially (e.g., three $0.1 lots become $0.9 lots combined). This excessive leverage strains margins and increases the likelihood of margin calls, particularly problematic as accounts grow larger or diversify portfolios.

- [00:08:33] ⚖️ **Profit Recovery Strategies Are Fragile:** Many advanced trading strategies use complex balancing techniques like pruning and basket closure, dependent on precise lot sizes relative to trades. Autoscaling disrupts these processes because dynamically adjusting trade sizes leads to uncoordinated partial closures and draws downs that wouldn’t occur if trades were copied precisely, thereby increasing losses or reducing profitability.

- [00:09:51] ⏳ **Manual Scaling Is Safer and Effective:** Instead of autoscaling trade-by-trade, traders should only upscale their multiplier after a significant positive equity increase (suggested ~20%) and during periods without open trades to prevent forced closure distortions. Changing multipliers over weekends ensures market stability and tighter risk controls.

- [00:10:32] 💡 **Education and Risk Awareness Are Crucial:** Thousands of dollars have been lost by traders who unknowingly used autoscaling or misunderstood its mechanisms. The video serves as an important educational resource urging traders to understand the settings carefully, avoid blindly following defaults, and practice disciplined risk management for sustainable trading.

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This detailed analysis reinforces that while copy trading offers chances to leverage expert strategies, the *how* of copying matters profoundly. Autoscaling may seem like a convenient tool but can unintentionally escalate risk beyond manageable levels. Using fixed multipliers, paired with thoughtful manual scaling, provides greater control and aligns trade sizes closer to the provider’s original intent, preserving risk management and improving the likelihood of consistent gains.