Auto trade copier vs. forex bots, which one is better? Which one should you choose to optimize profits? What do they even mean?
To put it simply, an auto trade copier is a piece of forex trading software that allows you to straight copy the trading position taken by another trader. It's right there in the name-- trade copier. A forex robot, on the other hand, is a trading program that helps you with the technical analyses and repetitive elements that feature forex trading. It's also called an FX bot or simply bot'.
Both of these technologies are essential, particularly in the modern-day world where 90% of forex trading is done by computer systems and algorithms. In fact, 1 in 3 financiers highly think that automated trading streamlines the otherwise over-complex standard forex market method. Furthermore, 1 in 4 traders were seriously considering social trading in 2020.
Because of this shift from conventional to tech-based forex trading, social trading platforms grew by 96% to simply under $50 billion ($ 47bn to be accurate) in 2020. That number is predicted to strike $83 billion in 2025 (growth of 48% each year). Long story short, auto trade copiers and forex robots are here to remain, and for good factor.
Are they needed?
The forex market is by far the largest and most liquid monetary market on earth. Let's take a look at a couple of numbers that highlight just how huge the forex market is:
The worldwide typical day-to-day sell the FX market is well over $6.6 trillion. For comparison, NASDAQ-- which is the greatest stock exchange on the planet-- has a trading volume of around $2.2 billion while the NYSE-- the 2nd biggest-- is valued at $2.09 billion.
Despite its huge size, the global foreign exchange market is neither becoming sluggish nor decreasing. Some forecasts 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.
Approximately 10 million people trade forex worldwide.
Roughly 41% of forex traders typical anywhere from 9 to 20 trades each month.
What the numbers show is that the foreign exchange market is big, challenging, intricate, and cutthroat 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 incredibly volatile. Sure, you can invest weeks and months coming up with a decent trading position. However because of the many, sudden market relocations, your position can quickly and quickly turn from a winning to a losing one.
The solution? Use a forex robot to crunch the numbers for you. In that case, your only job will be figuring out when to get in or leave a position. In fact, some FX bots will go a step even more and automatically set entry and exit points for you.
Better yet, you can use an auto trade copier to mirror winning positions of skilled traders. Think of it as forex trading for dummies, but with very little threat because novices choose the techniques developed by expert 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 allows you to copy the trading positions taken by another trader. In other words, it mirrors trading positions for you and puts you in a position where you can make a profit from someone else's ability. You just need to choose the quantity you want 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 earn a profit, so do you. The disadvantage is that if they make a loss, you'll also make a loss.
Which's where things end up being a little more fascinating. When selecting a trader to copy, you'll wish to choose an experienced investor who makes a profit more times than he/she makes a loss. That way you'll minimize the possibilities of entering a losing position.
Even better, you can spread the threat by dividing your overall amount and assigning each portion to a various method supplier. Let's say you have $1000 to invest. You can pick 4 experienced traders and choose an auto trade copier to copy their strategies.
If one or two make a loss from their techniques, then it indicates that the other three or 2 will have made a profit. It likewise implies that you will have gained a winning position from those 3 or more who earned a profit. That's much better than allocating the total to one technique supplier and then losing it all.
There are two points here. Firstly, your option of method company is very important. Secondly, it pays to spread threat. Unsure how to choose technique providers or spread your danger? Use the allmarketstrading social copy trading platform to instantly pick the very best forex traders on the marketplace.
This software application completely examines traders and selects those whose strategies 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 offer a forex trading platform (MT4 or MT5) straight to your computer system, mobile or tablet. Frequently they'll provide you 3 copy trading choices:
Manual-- you decide which traders to follow and whose methods to copy. This is referred to as social trading.
Semi-automated-- permits 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 choose the traders to follow along with techniques that best match your danger profile. After that, subsequent positions and trading are automatically replicated.
Note that although auto trade copiers are similar in numerous methods, they likewise differ in other elements. The allmarketstrading copier, for example, lets you personally choose your investment quantity. It also gives you the liberty to enter and exit a position at will.
That's what you desire in an auto trade copier. Not one that requires you to invest (and therefore risk) more money than you desire. And you absolutely have no service choosing a forex trading platform that will stick you with a losing technique or lock you out of a winning method-- i.e., one that does not enable you to enter or leave a position.