Signals, robots and copy trading
What a signal actually copies
A signal is a message that says buy or sell a market at a certain price. On a chart of EUR/USD around 1.0850, the message might say buy at 1.0850 with a stop at 1.0830. The signal provider decides the direction and the timing. You decide the lot size and whether to act at all. The chart shows the entry and the stop as two lines. The distance between them is the risk in pips.
If you follow that signal with 0.10 lots, the stop is 20 pips away. One pip on 0.10 lots of EUR/USD is 1 unit of the quote currency, so 20 pips is 20 units. At around 1.0850, that is roughly ₱20. If you use 1.00 lot instead, the same 20-pip stop is 200 units, or roughly ₱200. The signal did not change. Your lot size changed the peso loss.
A signal provider may charge a monthly fee, a fee per signal, or nothing at all. The fee is paid whether the signal wins or loses. The market loss is paid only when the signal is wrong. A provider who charges ₱1,000 per month and sends twenty signals is paid ₱1,000 even if every signal loses. That is why the fee is the smallest part of the cost.
What a robot does with your money
A robot is software that places trades for you. It reads the chart, applies rules, and sends orders to your broker. You install it, choose the lot size, and leave it running. The robot decides when to enter and when to exit. You still hold the position when the market moves against it. The chart shows the entries and exits after the fact. The robot does not show you the loss in pesos before it happens.
Suppose a robot costs ₱1,500 once and places a trade that loses 25 pips on 0.10 lots. One pip on 0.10 lots is 1 unit, so 25 pips is 25 units. At around 1.0850, that is roughly ₱25. The ₱1,500 fee is separate and already paid. If the robot places ten such trades in a month, the market loss is 250 units, or roughly ₱250. The fee stays ₱1,500. The market loss grows with every trade.
A robot can also place trades while you sleep. That means a loss can grow without you watching. You can set a maximum loss per trade, but the robot must respect it. If the robot ignores the stop or the broker slips the price, the loss can be larger. The chart will show the entry and the exit, but not the reason the robot chose them.
What copy trading copies and what it leaves with you
Copy trading links your account to another account. When that account opens a trade, your account opens the same trade. The copy service decides the direction, the timing, and often the lot size. You decide how much money to put in the account and whether to stop copying. The chart shows the same entries and exits as the other account. It does not show the other account's balance or its reason for trading.
A copy service may charge a monthly fee and a share of profit. Suppose it charges ₱2,000 per month and takes 20 per cent of profit. If your account gains ₱5,000 in a month, you pay ₱2,000 plus 20 per cent of ₱5,000, which is ₱1,000. Total cost is ₱3,000. Your net gain before other costs is ₱2,000. If your account loses ₱5,000, you still pay the ₱2,000 monthly fee. The service does not share the loss.
The lot size is the part that stays with you. If the other account uses 1.00 lot and you copy with 0.10 lots, your loss is one tenth of theirs. If you copy with the same lot size, your loss is the same. A 20-pip move on 1.00 lot is 200 units, or roughly ₱200 at around 1.0850. On 0.10 lots it is 20 units, or roughly ₱20. The copy service may set the lot size for you, but you can often change it. Check before you copy.
Three ways to hand over the decision, with the same 20-pip move on EUR/USD
| Step | Amount | Note |
|---|---|---|
| Signal service | ₱0 to ₱2,000 per month | The signal tells you what to do, but you still place the order. The fee varies by provider and is often charged in PHP by GCash or bank transfer. |
| Robot or expert advisor | ₱1,500 to ₱8,000 one-off or yearly | The robot places orders automatically. The price depends on the vendor and whether it is a one-time licence or a subscription. |
| Copy trading | ₱0 to ₱3,000 per month, plus a share of profit | The platform mirrors another account. Some charge a flat fee, some take a percentage of gains, and some do both. This varies between brokers. |
| One pip on one standard lot of EUR/USD | 10 units of the quote currency, converted at the current rate | 100,000 x 0.0001 = 10. At around 1.0850, that is roughly ₱10 if the quote currency is PHP, but the exact peso amount depends on the exchange rate at the time. |
| A 20-pip move on 0.10 lots | ₱20 | 20 pips x 10 units per pip x 0.10 lots = 20 units of the quote currency, converted to pesos. The same move on 1.00 lot would be ₱200. |
Your broker may round the exchange rate, charge a spread on entry and exit, add commission, or apply a swap if the position is held overnight. These costs are separate from the signal, robot or copy fee, and they vary between brokers.
Doing it once, step by step
You will now work through four steps to see what you are handing over and what you keep. Do them in order, using a chart of EUR/USD around 1.0850.
- 01
Mark the entry and stop on the chart
Open a chart of EUR/USD and find the current price, around 1.0850. Mark where a signal, robot or copy service would enter and where it would exit. Measure the distance in pips. That distance is the risk the decision-maker is taking. Write it down.
- 02
Set your lot size from your maximum loss
Decide the most you are willing to lose on one trade, in pesos. Convert that to units of the quote currency using the current exchange rate. Divide by the pip distance you measured. The result is your lot size. For example, if you will risk ₱100 and the stop is 20 pips, and one pip on 0.10 lots is 1 unit, you can use 0.50 lots.
- 03
Add up the fees you pay whatever happens
List every fee: monthly signal fee, robot purchase price, copy service subscription, profit share. Add them for one month. Compare that total with the market loss you would face if the trade goes wrong. The fees are paid whether the trade wins or loses. The market loss is paid only when it loses.
- 04
Check the provider against the SEC Philippines
Look up the provider on the SEC Philippines website. Check whether they are registered to offer investment advice or to manage money. If they are not registered, that is a warning. If they promise a result or a win rate, stop. No one can promise a result in trading.
- 05
Decide what you will do when the market moves against you
Before you start, write down your exit rule. Will you close at the stop, or will you hold and hope? The decision-maker may have a rule, but you hold the position. Your broker may charge a spread, commission, or swap that varies between brokers. These costs are separate from the fees you listed.
The mistake most people make here
The common mistake is to treat a signal, a robot or a copy account as a transfer of risk. It is not. You still choose the lot size, you still hold the position when the market moves against it, and you still owe any loss. The fee is the smallest part of the cost. Before using any of these, decide the maximum you are willing to lose on a single trade, set the lot size from that number, and check whether the provider is registered with the SEC Philippines. If a provider promises a result or a win rate, that is a reason to stop, not a reason to pay.Check yourself
If one pip on one standard lot of EUR/USD is 10 units of the quote currency, what is the value of a 15-pip move on 0.20 lots?
15 pips x 10 units per pip x 0.20 lots = 30 units of the quote currency. Converted at the current rate, that is the peso figure. At around 1.0850, it is roughly ₱30, but the exact amount depends on the exchange rate.
A copy service charges ₱2,000 per month and takes 20 per cent of profit. If your account gains ₱5,000 in a month, what do you pay in total?
₱2,000 flat fee plus 20 per cent of ₱5,000, which is ₱1,000. Total cost is ₱3,000. Your net gain before other costs is ₱2,000.
You pay ₱1,500 for a robot and it places a trade that loses 25 pips on 0.10 lots. What is the market loss before any broker charges?
25 pips x 10 units per pip x 0.10 lots = 25 units of the quote currency. Converted at the current rate, that is the peso loss. At around 1.0850, it is roughly ₱25, and the ₱1,500 robot fee is separate.
Questions that come up next
How much is one pip on the lots I plan to use?
One pip on a standard lot of EUR/USD is 10 units of the quote currency. On 0.10 lots it is 1 unit, and on 0.01 lots it is 0.1 units. At around 1.0850, one pip on 0.10 lots is roughly ₱1. The lot size sets the peso value of every pip before any signal, robot or copy trade exists.
What happens if I stop following a signal halfway?
A signal is a message, not a contract. You can ignore it, delay it, or close the position early. Once you have entered, the position is yours and the provider has no control over it. Closing early changes the result, and the fee you already paid does not come back.
Can a robot trade while I am asleep?
Yes, if you leave it running and your account has enough margin. That also means a loss can grow while you are not watching. A maximum loss per trade only works if the robot respects it and the broker fills the order at that price. Slippage can make the real loss larger than the one you set.
Does copy trading mean the other person loses money when I do?
No. Your account is separate. The other account copies the same trades, but the money at risk is yours. If that account is larger, the same trade is a smaller share of it. Your loss depends on your lot size, not on theirs.
Where do I check whether a provider is registered?
The SEC Philippines keeps a register of registered entities. You can search a company name there before paying any fee. A registration is not a promise of profit and does not cover market losses. It only tells you the entity is on the record.
How do I pay for a signal or robot in the Philippines?
Common methods are GCash and bank transfer. The method does not change the risk. Paying by GCash is fast and hard to reverse, so a fee sent to an unregistered provider is usually gone. Keep the receipt and check the provider first.
The words used on this page
- lot size
- The amount of currency in one trade. A standard lot is 100,000 units, and smaller sizes are fractions of it. The lot size sets how much one pip is worth in pesos.
- pip
- The smallest common step in a currency price. On EUR/USD around 1.0850, a move to 1.0851 is one pip. Its peso value depends on your lot size.
- stop
- An order that closes a trade at a chosen price to limit the loss. The distance from entry to stop, in pips, is the risk you have chosen. It only works if the broker fills at or near that price.
- slippage
- The difference between the price you expected and the price you got. It happens when the market moves fast or liquidity is thin. It can make a loss larger than the stop suggested.
- swap
- A charge or credit for holding a position overnight. It varies between brokers and is separate from any signal, robot or copy fee. It adds to the cost of a trade held for days.
- margin
- The money your broker sets aside to keep a position open. If the account falls below the required level, the broker can close positions. That close can happen at a loss you did not choose.
What to take away
- A signal, a robot and a copy account all move the decision, not the risk.
- Your lot size sets the peso value of every pip, and you choose it.
- The fee is paid whether the trade wins or loses; the market loss is paid only when it is wrong.
- Broker spread, commission, swap and slippage sit on top of any provider fee and vary between brokers.
- Check the SEC Philippines register before paying, and treat a promised result or win rate as a reason to stop.