<s>
Copy	B-Algorithm
trading	I-Algorithm
enables	O
individuals	O
in	O
the	O
financial	O
markets	O
to	O
automatically	O
copy	O
positions	O
opened	O
and	O
managed	O
by	O
other	O
selected	O
individuals	O
.	O
</s>
<s>
Unlike	O
mirror	O
trading	O
,	O
a	O
method	O
that	O
allows	O
traders	O
to	O
copy	O
specific	O
strategies	O
,	O
copy	B-Algorithm
trading	I-Algorithm
links	O
a	O
portion	O
of	O
the	O
copying	O
trader	O
's	O
funds	O
to	O
the	O
account	O
of	O
the	O
copied	O
investor	O
.	O
</s>
<s>
Any	O
trading	O
action	O
made	O
thenceforth	O
by	O
the	O
copied	O
investor	O
,	O
such	O
as	O
opening	O
a	O
position	O
,	O
assigning	O
Stop	O
Loss	O
and	O
Take	O
Profit	O
orders	O
,	O
or	O
closing	O
a	O
position	O
,	O
are	O
also	O
executed	O
in	O
the	O
copying	O
trader	O
's	O
account	O
according	O
to	O
the	O
proportion	O
between	O
the	O
copied	O
investor	O
's	O
account	O
and	O
the	O
copying	O
trader	O
's	O
allotted	O
copy	B-Algorithm
trading	I-Algorithm
funds	O
.	O
</s>
<s>
Copy	B-Algorithm
trading	I-Algorithm
has	O
led	O
to	O
the	O
development	O
of	O
a	O
new	O
type	O
of	O
investment	O
portfolio	O
,	O
which	O
some	O
industry	O
insiders	O
call	O
"	O
People-Based	O
Portfolios	O
"	O
or	O
"	O
Signal	O
Portfolios	O
"	O
(	O
borrowing	O
the	O
terminology	O
of	O
the	O
popular	O
MetaQuotes	O
Signal	O
Marketplace	O
)	O
.	O
</s>
<s>
Around	O
2005	O
,	O
Copy	B-Algorithm
trading	I-Algorithm
and	O
mirror	O
trading	O
developed	O
from	O
automated	B-Algorithm
trading	I-Algorithm
,	O
also	O
known	O
as	O
algorithmic	O
trading	O
.	O
</s>
<s>
It	O
was	O
an	O
automated	B-Algorithm
trading	I-Algorithm
system	I-Algorithm
where	O
traders	O
were	O
sharing	O
their	O
own	O
trading	O
history	O
that	O
others	O
could	O
follow	O
.	O
</s>
<s>
Foreign	O
exchange	O
copy	B-Algorithm
trading	I-Algorithm
has	O
been	O
plagued	O
by	O
scams	O
and	O
regulators	O
have	O
tried	O
to	O
clean	O
up	O
this	O
industry	O
.	O
</s>
<s>
This	O
has	O
caused	O
most	O
brokers	O
to	O
shut	O
down	O
their	O
copy	B-Algorithm
trading	I-Algorithm
services	O
.	O
</s>
<s>
copying	O
a	O
suggested	O
investor	O
,	O
fared	O
6-10	O
%	O
better	O
than	O
traders	O
who	O
were	O
trading	O
manually	O
,	O
and	O
4%	O
better	O
than	O
traders	O
who	O
were	O
copy	B-Algorithm
trading	I-Algorithm
random	O
investors	O
of	O
their	O
choice	O
.	O
</s>
<s>
As	O
of	O
2013	O
,	O
Dr.	O
Altshuler	O
has	O
been	O
collaborating	O
with	O
Professor	O
Alex	O
"	O
Sandy	O
"	O
Pentland	O
of	O
MIT	O
on	O
a	O
study	O
that	O
aims	O
to	O
find	O
a	O
"	O
sustainable	O
"	O
social	O
trading	O
mechanism	O
in	O
the	O
aim	O
of	O
fine	O
tuning	O
traders	O
 '	O
ability	O
to	O
benefit	O
from	O
copy	B-Algorithm
trading	I-Algorithm
.	O
</s>
<s>
Copy	B-Algorithm
trading	I-Algorithm
may	O
however	O
also	O
have	O
potentially	O
adverse	O
effects	O
for	O
investors	O
.	O
</s>
<s>
From	O
this	O
perspective	O
,	O
copy	B-Algorithm
trading	I-Algorithm
may	O
lead	O
to	O
excessive	O
risk	O
taking	O
.	O
</s>
<s>
High	O
returns	O
in	O
copy	B-Algorithm
trading	I-Algorithm
may	O
be	O
associated	O
with	O
high	O
risk	O
taking	O
on	O
the	O
part	O
of	O
the	O
replicated	O
investors	O
.	O
</s>
<s>
Copy	B-Algorithm
trading	I-Algorithm
can	O
also	O
lead	O
to	O
excessive	O
risk-taking	O
and	O
non-optimal	O
outcomes	O
,	O
both	O
personally	O
and	O
socially	O
.	O
</s>
<s>
Pompeu	O
Fabra	O
University	O
,	O
Heidelberg	O
University	O
,	O
and	O
the	O
University	O
of	O
Essex	O
Colchester	O
were	O
the	O
first	O
to	O
openly	O
study	O
copy	B-Algorithm
trading	I-Algorithm
in	O
an	O
experimental	O
setting	O
.	O
</s>
<s>
Those	O
who	O
have	O
demonstrated	O
a	O
low	O
risk	O
tolerance	O
are	O
tempted	O
to	O
take	O
more	O
risk	O
by	O
copy	B-Algorithm
trading	I-Algorithm
.	O
</s>
<s>
Other	O
researches	O
also	O
indicated	O
that	O
lack	O
of	O
trust	O
is	O
one	O
of	O
the	O
most	O
significant	O
barriers	O
inhibiting	O
online	O
trade	O
,	O
and	O
that	O
trust	B-Application
signals	I-Application
play	O
important	O
roles	O
in	O
overcoming	O
these	O
barriers	O
.	O
</s>
<s>
So	O
that	O
,	O
the	O
credibility	O
of	O
online	O
community	O
members	O
is	O
crucial	O
in	O
the	O
setting	O
of	O
online	O
and	O
copy	B-Algorithm
trading	I-Algorithm
,	O
as	O
in	O
other	O
online	O
communities	O
such	O
trust-based	O
decision	O
making	O
is	O
uncommon	O
.	O
</s>
<s>
In	O
2014	O
,	O
the	O
United	O
Kingdom	O
Financial	O
Conduct	O
Authority	O
(	O
FCA	O
)	O
has	O
raised	O
concerns	O
regarding	O
copy	B-Algorithm
trading	I-Algorithm
as	O
they	O
deem	O
the	O
firms	O
offer	O
copy	B-Algorithm
trading	I-Algorithm
to	O
be	O
effectively	O
unregulated	O
investment	O
managers	O
.	O
</s>
<s>
As	O
such	O
,	O
the	O
FCA	O
has	O
sent	O
letters	O
to	O
those	O
companies	O
providing	O
copy	B-Algorithm
trading	I-Algorithm
services	O
notifying	O
them	O
of	O
their	O
intention	O
to	O
classify	O
them	O
as	O
portfolio	O
or	O
investment	O
managers	O
.	O
</s>
<s>
Different	O
copy	B-Algorithm
trading	I-Algorithm
platforms	O
employ	O
different	O
copy	B-Algorithm
trading	I-Algorithm
logic	O
.	O
</s>
<s>
These	O
usually	O
vary	O
in	O
regards	O
to	O
the	O
minimum	O
copy	B-Algorithm
trading	I-Algorithm
amounts	O
,	O
the	O
minimum	O
amount	O
for	O
a	O
copied	O
trade	O
,	O
and	O
the	O
way	O
money	O
in/out	O
operations	O
on	O
behalf	O
of	O
the	O
copied	O
trader	O
are	O
reflected	O
in	O
the	O
proportions	O
between	O
the	O
copied-copying	O
accounts	O
.	O
</s>
<s>
Some	O
platforms	O
also	O
enable	O
traders	O
to	O
place	O
Stop	O
Loss	O
orders	O
on	O
the	O
entire	O
copy	B-Algorithm
trading	I-Algorithm
relationship	O
,	O
allowing	O
traders	O
to	O
control	O
the	O
risk	O
of	O
their	O
copy	B-Algorithm
trading	I-Algorithm
activity	O
based	O
on	O
the	O
individual	O
copied	O
investors	O
.	O
</s>
<s>
Various	O
financial	O
trading	O
operators	O
offer	O
copy	B-Algorithm
trading	I-Algorithm
capabilities	O
as	O
part	O
of	O
a	O
larger	O
social	O
trading	O
platform	O
.	O
</s>
<s>
as	O
well	O
as	O
find	O
potential	O
copy	B-Algorithm
trading	I-Algorithm
candidates	O
by	O
viewing	O
investors	O
 '	O
performance	O
statistics	O
.	O
</s>
