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Copy-trading with MetaTrader

With copy-trading, you can benefit from the research, experience, and decisions of other more expert traders. Sounds interesting? This article will mainly focus on automatic forms of copy trading. 

What is copy-trading?

The term copy-trading or copy-trade is used for all types of trading in which the trader follows or copies the positions of another user. However, various types of copy trading can be distinguished:

-Automatic: choose a strategy that suits your trading style and level of risk tolerance. Afterward, all the operations that the provider performs on his own trading account are automatically executed and managed on yours.

-Semi-automatic copy trading: you will receive a notification of the operations that are carried out based on the signal you have selected, and you can select for yourself what to copy and what not, controlling by the risk management you are performing.

-Manual copy of trades from other experienced traders.

Types of copy-trading

Mirror trading:

This system of copying was introduced in the 2000s and it is the original form of the current one. This service is located within the broker’s trading platform.

The trader can see the features and results of past strategies available on the platform. Then, you choose, based on your profit targets, trading style, capital and risk tolerance level, among other things, the strategy belonging to another user that you want to copy, etc.

It fundamentally reflects all the actions based on this trading strategy, hence the word “mirror”. With this type of trading, traders are automatically copied and set up on your own account.

Copy-trading:

With this style of trading, your trading account is immediately linked to that of the trader you want to copy. Set the scale you want to manage for your copy trade activities and then the chosen user’s trades are automatically composed in your account.

With this system, you have the freedom to decide the sum of capital you want to use for this. Entry levels, stop loss levels and exit levels are also copied in principle, but this can be adjusted.

In addition, the trader has the choice of disabling the copying functions at any time and taking over the administration of the account.

Social trading:

It adds a social factor to the idea of copy trading. You will be able to copy trades, strategies, and communicate with other traders. This system is called ‘people-based portfolio’ investing.

In this case, a trader is chosen instead of a trading strategy. Users are basically guided by the trader’s profile, style, and performance.

To access these systems you must have a tool, a platform. MetaTrader is a free trading platform that will allow you to access the financial markets you want to operate. Read More

The benefits of copy-trading :

We can identify these major benefits:

– Benefit from the experience of other traders:

People want to benefit from the performance of another trader or the outcomes of their strategy. This is the clearest benefit and the reason why most traders go for it.

– Simplify the process of operating:

Many choose copy trading because they don’t have time to research or control the markets. In fact, it is a form of automatic trading and, therefore, can extremely simplify the technical analysis process.

– Facilitate actions related to the operation:

With the help of a copy trading system, you can connect your trading account to that of another user so that your actions are also carried out automatically on your account.

– See if a strategy works:

The trader has an idea of “what works and what doesn’t. Additionally, social trading also gives the possibility to communicate with other traders.

– Trading psychology:

The most significant advantage of a copy trading system is that it eliminates the decision-making process; After all, you have decided for yourself which system you want to implement.

However, this is also the most important weakness. You must be sure that the chosen strategy is being implemented rightly and that the outcomes presented by the trader are reasonably consistent. Read More.

Copy-trade in MT4 & MT5

To start with an automatic copy trading system, you must have the right software and tools.

MT4 & MT5 trading platforms include a huge selection of indicators , oscillators and expert advisors, and other technical aids, including the MT4 & MT5 signal service for copy trading. 

The Forex copy trade feature is a core feature of the MT trading platform. This indicates that you will have direct access to this as soon as you install the MT4 or MT5 trading platform.

About Marketsbloom:

Markets Bloom is a trading academy consisting of former trading industry professionals. We aim to help all types of traders looking to trade in the financial markets.

By registering with us, you will gain amazing insights into common issues traders face as well as how to instantly improve your trading approach. Our team of experts will be with you every step of the way on your journey to becoming a better trader.

For more information on our services contact us

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