Copy trading gives you access to investment strategies created by others while maintaining the flexibility to adjust your investment approach as needed.
What is Copy Trading?
Copy is an innovative feature on dub that enables you to automatically mirror the actions and updates made by portfolio creators in real-time. When you copy a portfolio, your investment remains aligned with the original strategy automatically.
How to Copy a Portfolio
Follow these steps to copy a portfolio:
- Browse available portfolios on the dub platform
- Select a portfolio that interests you
- Review the portfolio details, including:
- Holdings and allocations
- Performance history
- Creator information
- Tap "Invest"
- Enter the amount you want to invest
- Review and confirm your copy order
How Your Copy Portfolio Investments Work
When you copy a portfolio, your investment is automatically distributed to mirror the portfolio's current percentage allocations.
Example: If you invest $3,000 in a portfolio with:
- 40% in Company A
- 35% in Company B
- 25% in Company C
Your $3,000 would be invested as:
- $1,200 in Company A
- $1,050 in Company B
- $750 in Company C
Automatic Updates and Rebalancing
What is Rebalancing?
Rebalancing is the process of adjusting the asset allocations within a portfolio to maintain the desired investment strategy or risk level. Over time, as markets move, some investments grow faster than others, causing the portfolio to drift from its original allocations.
How Rebalancing Works with Copied Portfolios
When you tap the "Invest" button to Copy a portfolio, you authorize dub Financial to place orders that align with the portfolio you're copying. This means:
- Automatic Rebalancing: When the portfolio creator rebalances their portfolio, your portfolio automatically adjusts to maintain the same proportions
- Real-time Updates: Your investment will reflect any changes made by the portfolio creator
- Notifications: You'll receive notifications whenever there are updates to the portfolio you've copied
Understanding Rebalancing Notifications
You may occasionally see messages like:
"Currently, the creator of the [Portfolio Name] is in the process of updating the portfolio. When the creator is rebalancing or doing other maintenance to their portfolios, users will not be able to make actions on the portfolio until the new updates have processed."
This means:
- The portfolio creator is making changes to their portfolio
- Your portfolio will automatically update once their changes are processed
- You'll need to wait until this process completes to make any changes yourself
How to Sell or Liquidate a Copied Portfolio
You can sell your copy of a portfolio at any time:
- Navigate to the app's home page
- Locate your portfolio under "Portfolios I've Copied"
- Tap on the portfolio
- Select "Sell" or "Liquidate"
- Choose to sell all or a portion of your investment
- Review and confirm the sell order
Portfolio Liquidation: What Happens When a Creator Liquidates
If a portfolio's creator liquidates the portfolio, your copied portfolio will also be automatically liquidated. This is part of the automatic mirroring feature of copy trading.
How This Works
When you elect to copy a portfolio, you authorize dub Financial to automatically mirror all actions taken by the creator—including rebalances and liquidations. This means:
- If the creator decides to liquidate (sell all positions in) their portfolio, your copied portfolio will be liquidated at the same time
- You'll receive notifications when a liquidation occurs
- The proceeds from the liquidation will appear as cash in your account (after T+1 settlement)
- You can then choose to invest in a different portfolio or withdraw the funds
Why This Happens
The copy feature is designed to keep your portfolio perfectly aligned with the creator's strategy at all times. When a creator liquidates their portfolio, it means they've decided to exit that particular investment strategy entirely. To maintain the integrity of the copy feature and ensure you're truly mirroring their approach, this action is automatically reflected in your account.
Important Things to Know
Continuation and Check-ins
- Once you've copied a portfolio, the synchronization continues automatically
- Every three months, dub provides a check-in to ensure the copied portfolio still aligns with your investment goals
- You'll need to confirm you wish to continue copying the portfolio at these check-ins
If a Creator Stops Managing
- If the creator stops managing the portfolio, your copy will continue to reflect the last known holdings and weights
- You'll still have the option to sell your copy or choose a different portfolio to copy
Minimum Investment
- The minimum investment amount varies based on the number of holdings and their weights
- This information is displayed after tapping "invest" on the portfolio landing page
- You can invest additional funds into your portfolio at any time