COPY TRADING: An Incredibly Easy Method That Works For All

Copy Trading Explained: The Ultimate Guide To Copy trading

Introduction to Copy Trading

Copy-trading allows you to immediately copy another trader’s positions. You choose the amount you want to invest and then just copy whatever they do in real-time — every time that trader makes a deal, your account will make the same move.

 

You don’t have to make any decisions about the deals, and you get the same returns as your chosen trader.

Copy trading is one of the easiest ways to benefit from another trader’s expertise. It also implies you maintain complete control over the outcome. You can continue to close deals and open new ones whenever you like.

However, you could potentially make money by copying another trader’s strategies systems.

Copy Trading Strategy Revealed

One of the most difficult aspects of copy trading is deciding who to copy. There are numerous signal/strategy providers on one platform, as well as numerous aspects to consider.

man holding black smartphone with flat screen monitor in front

  1. Historical drawdown – The difference between the account and equity balances, when the equity balance is less than the account balance, is known as drawdown. It measures an account’s largest loss, which is why you should evaluate how much of a trader’s account has been in the red over time. A similar drawdown is likely to occur again in the future, especially if the same strategy is used.
  2. Proven track record – Examine a trader’s performance over the previous three months or longer. It’s preferable if they’ve been trading for a while so you can see how they perform when the market is up or down.  
  3. Returns – Examining the historical performance graph is an easy approach to spot this. If it’s progressively rising, you might want to consider switching signal providers. Check out someone else if there are any abnormal spikes.
  4. Confidence – Follow a signal provider who trades with real money on a real account. If this is the case, they are more inclined to be cautious in their trading. This also shows that they are self-assured enough to take the dangers that come with trading
  5. Risk level – Copy trading is not without hazards, but you don’t have to accept them if you can’t afford them. This is when the risk level of a signal provider comes into play. Is it too high or too low? To assess risk levels, check to see if stop levels are placed on each trade opened and at what distance. Don’t copy a trader who has no stop-losses because this means you’re taking on unlimited risk.

The Basics of Copy Trading

You don’t have to worry about the hundreds of variables that can influence the price of gold versus the dollar as a copier.

You can sit back and relax, or you begin learning the ins and outs of trading in order to become an expert.
Though the transactions will open and close in real-time, remember the time zone of the expert you’re copying!

The best aspect is that you can just click a button to cease copying a Master Trader at any time.

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