Summary: The text explains survivor bias in copy trading: rankings highlight only those who are still around, not those who failed, making apparent profits look better than they are. Relying on short-term results or “golden” performers can mask risk and lead to copy decisions based on luck rather than skill. To avoid this bias, the speaker offers a practical framework for evaluating operators and building a durable copy portfolio, including longer histories, risk visibility, consistency, stable position sizes, transparency, understanding the edge, and meaningful metrics. The message emphasizes backtesting across market cycles and smart diversification, with concrete rules and exercises to test profiles before copying. The goal is to move from chasing appearances to adopting a methodical, risk-aware investment process. Key points and steps: - Survivor bias definition: rankings show only survivors, skewing perceived skill and profitability. - Problems with common rankings: short evaluation windows, emphasis on gross returns while hiding drawdowns, and profiles that reset or rely on hot streaks. - Episode objective: learn to filter, measure risk, and build a copy portfolio that lasts. - Step-by-step filters: 1) History: at least 12 months and ~20 trades; avoid relying on a few wins. 2) Visible risk: assess the equity curve; require a cumulative-return-to-maximum-drawdown ratio of at least 2. 3) Consistency: more than half of months positive; drawdowns recover within months. 4) Trade size/leverage: prefer stable sizing; avoid chasing losses. 5) Transparency: beware of erased history or frequent strategy changes. 6) Edge quality: understand the edge in two sentences; if not, be wary. 7) Metrics: use risk-adjusted metrics (e.g., Sharpe) and watch the length of negative streaks. - Practical guidance: apply filters on the platform, anticipate that few profiles passing the sieve is a good sign. - Diversification: copy multiple operators with different styles; limit exposure per operator (e.g., max 10%); use a loss exit if an operator exceeds their historical max drawdown. - Backtesting and realism: test strategies across up, down, and sideways markets; prefer median results over means. - Quick exercise: seven days, review one operator per day with the checklist, decide whom to copy and why. - Reflection questions: how many operators disappeared from rankings; what loss threshold triggers an exit; what you learn from setbacks. - Takeaway: survivor bias can turn copy trading into a lottery; the aim is a disciplined, survivable investment approach. End note (contact): Remeber you can contact me at andresdiaz@bestmanagement.org