Auto trade copier vs. forex bots, which one is better? Which one should you choose to optimize profits? What do they even indicate?
To put it simply, an auto trade copier is a piece of forex trading software application that enables 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 elements that come with forex trading. It's likewise called an FX robot or merely bot'.
Both of these innovations are required, specifically in the modern-day world where 90% of forex trading is done by computers and algorithms. In fact, 1 in 3 investors strongly believe that automated trading simplifies the otherwise over-complex standard forex market technique. Additionally, 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 just under $50 billion ($ 47bn to be accurate) in 2020. That number is predicted to hit $83 billion in 2025 (development of 48% per year). Long story short, auto trade copiers and forex bots are here to remain, and for good reason.
Are they needed?
The forex market is without a doubt the biggest and most liquid financial market in the world. Let's take a look at a couple of numbers that highlight simply how huge the forex market is:
The international typical everyday trade in the FX market is well over $6.6 trillion. For contrast, NASDAQ-- which is the biggest stock market in the world-- has a trading volume of around $2.2 billion while the NYSE-- the second largest-- is valued at $2.09 billion.
Despite its huge size, the international foreign exchange market is neither ending up being slow nor slowing down. Some forecasts anticipate that it will grow by approximately 6% per year to $10.2 trillion by 2026.
Over 170 currencies are traded on the FX market.
Approximately 10 million individuals 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 huge, intimidating, complicated, 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 extremely unstable. Sure, you can invest weeks and months developing a good trading position. But because of the many, unexpected market moves, your position can easily and quickly turn from a winning to a losing one.
The service? Use a forex bot to crunch the numbers for you. In that case, your only task will be identifying when to enter 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 skilled traders. Consider it as forex trading for dummies, but with very little risk due to the fact that beginners choose the strategies established by professional and skilled traders. With that said ...
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 somebody else's ability. You only require to decide the quantity you want to invest and after that copy everything that the other trader is doing.
When that trader makes a trade, your account will make a comparable trade in real-time. If they earn a profit, so do you. The drawback is that if they make a loss, you'll also make a loss.
Which's where things end up being a little bit more interesting. When selecting a trader to copy, you'll want to opt for an experienced investor who makes a profit more times than he/she makes a loss. That way you'll minimize the chances of going into a losing position.
Even much better, you can spread out the danger by dividing your total amount and allocating each part to a various strategy company. Let's say you have $1000 to invest. You can pick 4 knowledgeable traders and use an auto trade copier to copy their techniques.
If one or two make a loss from their techniques, then it means that the other three or 2 will have made a profit. It also suggests that you will have gained a winning position from those three or more who made a profit. That's much better than designating the total to one technique company and then losing it all.
There are two points here. First of all, your option of method supplier is really essential. Second of all, it pays to spread danger. Unsure how to choose technique providers or spread your threat? Use the allmarketstrading social copy trading platform to instantly pick the very best forex traders on the market.
This software application completely examines traders and picks out those whose strategies win more than lose. It then occupies a list from which you can follow the best-performing traders and mirror their winning methods.
How does a trade copier work?
The very best auto trade copiers offer a forex trading platform (MT4 or MT5) directly to your computer, mobile or tablet. Usually they'll give you three copy trading options:
Handbook-- you decide which traders to follow and whose strategies to copy. This is known as social trading.
Semi-automated-- permits you to view all the positions of the trader you have selected. You can then decide which positions to instantly follow and which ones to copy and trade yourself.
Automated-- you select the traders to follow together with strategies that best match your danger profile. After that, subsequent positions and trading are automatically replicated.
Note that although auto trade copiers are similar in lots of methods, they likewise vary in other elements. The allmarketstrading copier, for instance, lets you personally choose your investment amount. It also provides you the liberty to get in and exit a position at will.
That's what you want in an auto trade copier. Not one that forces you to invest (and thus danger) more cash than you desire. And you absolutely have no company using 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.