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Copy Trade Is
Copy Trade is a form of investment that involves copying the trades of other traders. It all started in 2005 when the trading service Tradency first offered automated trading but its popularity skyrocketed with eToro and its CopyTrader service. Today, many brokers offer copy trading with various features.
Copy Trade Technology Upgrade: Traders Can Be More Profitable
In copy trading, the only research you need to do is to find profitable traders on the copy trading platform. Most platforms offer a simple way to filter trading results from experienced traders, making it easy to find the ones that best suit your trading style and risk tolerance.
When a trader you follow opens a trade, the copy trading platform opens the same trade in your account, automatically. You can also choose how much capital you want to allocate to a trader, as well as your total risk per trade. For example, if a trader opens a long position on gold with 5% of their trading account size, the same trade will appear in your trading account. You can limit your risk per trade to any level you want if you are more risk averse than the trader you follow.
Difference Between Copy Trading and Social Trading
Copy trading is a part of social trading that allows users to copy the trades of other investors or masters.
While social trading allows users to copy other traders' investments, which means that copy trading on your account will execute whatever trades they make. If they buy, then you buy. Conversely, if they sell, then you sell, and if they hold, then you hold.
How Copy Trade Works Is
Copy trading connects part of your portfolio to the portfolio of a trader of your choice. Once you copy a trader, all their open trades are copied to your account. Furthermore, all their future actions are also automatically copied to your account. You are asked to choose the amount to invest in a particular trader. In most cases, the amount should not be more than 20% of your portfolio.The amount used in trading is a calculated percentage of the trader’s portfolio based on how much you decide to invest. Imagine your current account balance is USD 1000. You have no open trades but you have decided that you want to copy a trader. The statistics look promising but since this is your first time trying something like this, you don’t want to invest too much. That’s why you invest USD 100 (or 10% of your funds).Learn How to Day Trade Crypto and Mistakes Day Traders Make!
The steps to carry out a copy trade are
- The first step of copy trading is to create an account on a reliable stock and trading platform. On most trading platforms, there is an option to follow fellow traders. There are different standards for choosing the right trader to follow. For example, you may want to follow a trader who has more profits, or they have a consistent trading pattern.
- The second step is to decide how much you want to invest and are financially prepared to take the risk. As the saying goes, never put all your eggs in one basket. Start with a small percentage of your disposable income and remember that investing always comes with the risk that you may not get all your money back.
- The third step is just watching! There are trading platforms that automatically copy your stock option trades with the fellow investors you copy from. However, there is a manual way to copy trade by looking at the portfolio options your peers are buying and selling.
Forex Robot VS Copy Trade, Explanation and Distribution Permit
Difference Between Copy Trade And Mirror Trade
Copy trading allows individuals in the financial markets to automatically copy positions opened and managed by other selected individuals. Unlike mirror trading, a method that allows traders to copy a specific strategy, copy trading links a portion of the copy trader's funds to the copied investor's account.
Mirror Trading : Automated Approach
Mirror trading, as the name suggests, is when you copy another trader’s trading strategy. I say another trader because the companies that offer mirror trading combine the strategies of their top traders to generate reliable and accurate signals for their customers. Today, mirror trading is much more sophisticated. The strategies may be old, but they have been enhanced with the help of big data and artificial intelligence. As a result, mirror trading signals are relatively accurate and predictable; they are perfect for investors who want a hands-off forex trading experience. The only downside to mirror trading is the fact that you have to mirror everything. You don’t get to pick and choose which signals you want to follow; in fact, the entire process is completely automated. Traders also have to install proprietary software or a MetaTrader plugin to enable automated mirror trading.
Copy Trading : Follow the Best Traders
Copy trading is an improvement on mirror trading. Unlike mirror trading, which requires you to follow every signal without any human input, copy trading allows you to choose a specific trader whose trades you want to copy. When that trader opens a position, your trading account will follow suit. Copy trading remains fully automated, but you can choose to follow different traders at different times. You also have the option to follow multiple traders (i.e. for different currency pairs) depending on the platform’s support. Following the best traders also allows you to learn more about their trading strategies. You can observe all open positions in real-time and try to understand the reasoning behind each trading decision.Tips and Strategies to Improve Your Copy Trading Results
The way to choose the best copy trader provider is:
Criteria for selecting traders to copy
The biggest difference between trading for yourself or letting someone else do it is trust. You are trusting someone else with your money. Therefore it is wise to know why you are trusting them. Having insight into a few factors can go a long way in deciding who to trust. One of the biggest challenges of copy trading is choosing who to copy. There are many different traders on one platform, all using different strategies so there are many factors to consider.To provide a solid foundation, we've picked out a few that we think are good ones to watch out for.
Proven Track Record
Look at a trader’s performance over a long period of time. The longer the history, the better. Having a long trading history provides insight into how someone performed when the market was bullish or bearish.Return
A good trader to follow should show consistent results rather than sporadic results. A quick way to identify this is to look at the historical performance chart. If it is consistently increasing, then you are looking for a suitable candidate to follow. If there are irregular spikes, check out someone else.Confidence
Follow someone who is trading with a real account and risking their own money. They are less likely to be reckless with their trading if this is the case. It also shows that they are confident enough to take risks.Consistency
By looking at someone’s past trading volume, you can get a sense of what type of trader they are. If a trader is consistent with their trading volume, it shows that they have a solid strategy and are sticking to a strategy that they know works, even with the occasional drawdown. If there are large fluctuations in trading volume, it can indicate that the trader is unsure of their strategy and may be taking excessive risks.Risk level
Copy trading is not without risks, but you don’t have to take the high risk of losing your money if you can’t afford it. Above all, check whether a stop level is set on each trade opened and at what distance to determine the level of risk.
Followers
Followers
See how confident the following trader is. Is the trader followed by followers who have invested a decent amount of money? This means that the following is putting trust in the trader. Copy Trading can be very profitable. But like anything, without risk there is no reward. Start small, and get comfortable with the people you choose to follow, and slowly build trust as you increase your investment in someone. Ultimately you are the one taking the risk, not someone else.
What are the pros and cons of Copy Trade
Copy trading is a form of investment, and may not be right for everyone or every financial situation. That’s why it’s important to understand the pros and cons of copy trading before you get started. excess :
- There is an opportunity to make money gradually.
- Great way to trade as a beginner
- Helps network with expert traders
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Remember the diversification of funds we talked about, this is a great way to generate passive income.
contra
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Find the right copying platform/copying software. Many platforms require you to pay for the software, avoid companies that are not backed by the BBB.
- Determine which traders are legitimate. In the world of social media, people have to do in-depth research rather than just looking at profile pictures. Use precautions when looking for traders to copy.
- If using automated software, make sure you monitor your losses and cash out yourself before all your money is gone.
Copy Trade By GICTrade
GICtrade's Copy Trade service is called Social Trade. This service connects Brokers, Masters and Followers through the GICTrade platform. The way Social Trade works is that followers choose the master they will follow and then determine the strategy to follow (Copy). When the master places an order position, Social Trade will then synchronize the trade to the follower's account that matches the master's strategy. The advantages that will be obtained if you use the GICTrade Social Trade service:
- Copy trade and reverse trade
- Free From Any Legal Broker
- Free combination of MT4 & MT5
- Money management options according to Follower equity
- Affordable subscription fees
- Access from All Gadgets
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Supported by the Latest Technology
What are the requirements to become a Master at GIC Social Trade?
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- Register as a Master on the GIC website.
- Have at least 3 months of trading history using a local broker. Masters who trade at GIC will get special treatment with a profit sharing of 80/20 from the subscription fee. While Non GIC profit sharing is 70/30.
- Fill out the form by submitting the correct information including mobile phone number, email, ID card, and other required information or documents, and wait for approval from GIC.
Source :
https://www.century.ae/en/what-is-copy-trading/
https://www.creditdonkey.com/social-trading-vs-copy-trading.html#:~:text=Copy%20trading%20is%20a%20subset,If%20they%20buy%2C%20you%20buy.
https://www.majority.com/en/community/article/what-is-copy-trading/
You can start following the master by registering an account on the GICTrade platform, start trading now!
