Auto trade copier vs. forex robots, which one is better? Which one should you choose to take full advantage of revenues? What do they even mean?
To put it just, an auto trade copier is a piece of forex trading software that permits you to directly copy the trading position taken by another trader. It’s right there in the name– trade copier. A forex bot, on the other hand, is a trading program that assists you with the technical analyses and recurring components that feature forex trading. It’s also called an FX bot or simply bot’.
Both of these innovations are needed, specifically in the contemporary world where 90% of forex trading is done by computers and algorithms. In fact, 1 in 3 investors highly think that automated trading streamlines the otherwise over-complex conventional forex market technique. In addition, 1 in 4 traders were seriously considering social trading in 2020.
Because of this shift from traditional to tech-based forex trading, social trading platforms grew by 96% to simply under $50 billion ($ 47bn to be exact) in 2020. That number is forecasted to hit $83 billion in 2025 (growth of 48% annually). Long story short, auto trade copiers and forex bots are here to remain, and for good factor.
Are they necessary?
The forex market is without a doubt the biggest and most liquid financial market on earth. Let’s take a look at a few numbers that highlight simply how huge the forex market is:
The international average everyday trade in the FX market is well over $6.6 trillion. For comparison, NASDAQ– which is the biggest stock exchange worldwide– has a trading volume of around $2.2 billion while the NYSE– the 2nd biggest– is valued at $2.09 billion.
In spite of its huge size, the international forex market is neither ending up being sluggish nor decreasing. Some projections forecast that it will grow by approximately 6% each year to $10.2 trillion by 2026.
Over 170 currencies are traded on the FX market.
Roughly 10 million people trade forex worldwide.
Roughly 41% of forex traders average anywhere from 9 to 20 trades monthly.
What the numbers reveal is that the forex market is big, intimidating, intricate, and ruthless competitive. Unless you’re a professional, you absolutely can’t crunch the numbers to come up with a winning formula.
Besides, the forex market is very unpredictable. Sure, you can spend weeks and months coming up with a decent trading position. But because of the many, sudden market relocations, your position can easily and quickly turn from a winning to a losing one.
The service? Choose a forex robot to crunch the numbers for you. Because case, your only job will be identifying when to go into or exit a position. In fact, some FX bots will go a step even more and automatically set entry and exit points for you.
Even better, you can use an auto trade copier to mirror winning positions of seasoned traders. Think about it as forex trading for dummies, but with minimal risk since beginners use the methods developed by professional and skilled traders. With that stated …
What’s an Auto Trade Copier and How Does It Work?
As the name suggests, an auto trade copier enables you to copy the trading positions taken by another trader. Simply put, it mirrors trading positions for you and puts you in a position where you can make a profit from somebody else’s ability. You only require to decide the quantity you wish to invest and then copy everything that the other trader is doing.
When that trader makes a trade, your account will make a similar sell real-time. If they make a profit, so do you. The disadvantage is that if they make a loss, you’ll also make a loss.
Which’s where things become a little more interesting. When selecting a trader to copy, you’ll wish to opt for an experienced financier who earns a profit more times than he/she makes a loss. That way you’ll lessen the possibilities of getting in a losing position.
Even much better, you can spread the danger by dividing your total amount and designating each portion to a various technique provider. Let’s say you have $1000 to invest. You can pick 4 experienced traders and use an auto trade copier to copy their strategies.
If one or two make a loss from their techniques, then it indicates that the other 3 or more will have made a profit. It likewise suggests that you will have gained a winning position from those 3 or 2 who earned a profit. That’s much better than designating the full amount to one strategy supplier and after that losing it all.
There are two points here. To start with, your choice of method service provider is really essential. Second of all, it pays to spread threat. Uncertain how to select strategy suppliers or spread your risk? Choose the allmarketstrading social copy trading platform to automatically select the very best forex traders on the market.
This software completely evaluates traders and chooses those whose methods win more than lose. It then populates a list from which you can follow the best-performing traders and mirror their gaining techniques.
How does a trade copier work?
The best auto trade copiers provide a forex trading platform (MT4 or MT5) straight to your computer system, mobile or tablet. Usually they’ll provide you three copy trading options:
Manual– you decide which traders to follow and whose techniques to copy. This is called social trading.
Semi-automated– enables you to view all the positions of the trader you have picked. You can then decide which positions to immediately follow and which ones to copy and trade yourself.
Automated– you select the traders to follow along with methods that best match your danger profile. After that, subsequent positions and trading are automatically duplicated.
Keep in mind that although auto trade copiers are similar in many ways, they also differ in other aspects. The allmarketstrading copier, for instance, lets you personally decide your investment quantity. It likewise offers you the liberty to go into and leave a position at will.
That’s what you want in an auto trade copier. Not one that requires you to invest (and thus danger) more money than you desire. And you absolutely have no service using a forex trading platform that will stick you with a losing method or lock you out of a winning method– i.e., one that doesn’t permit you to get in or leave a position.