You follow the trades and face losses, while others profit from following your trades, why?

Before we clarify this issue, we need to understand the components of your profit from following trades. Generally speaking, if your principal is 1000U and you follow trades for a month, with a maximum loss of 1000U and a profit of 500U, this 500U is not entirely yours; you need to deduct a 30% commission for the signal provider, leaving you with 350U. There are also opening and closing fees of 100U, leaving you with 250U. So, with a 1000U principal, you made a profit of 250U (remember this).

For the signal provider, with a maximum loss of 1000U and a profit of 500U, they only need to profit 2 times out of 3 trades to maintain a profit-loss ratio of 2:1, which means their win rate only needs to be above 66.67% to break even. However, from the follower's perspective, with a profit of 500U, only 250U ends up in their hands, so the follower's profit requirement is to have 5 trades, needing to profit 4 times, with a profit-loss ratio of 4:1, which means they need an 80% win rate to break even.

This is the profit-loss ratio. The higher the profit-loss ratio, the lower the win rate can be; the lower the profit-loss ratio, the higher the win rate needs to be. This is why the signal provider can be profitable while the follower incurs losses. The win rate required by followers is not the same as that required by the signal provider.