Auto trade copier vs. forex robots, which one is better? Which one should you use to maximize revenues? What do they even imply?
To put it just, an auto trade copier is a piece of forex trading software that allows you to directly 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 assists you with the technical analyses and recurring elements that feature forex trading. It's also called an FX bot or merely bot'.
Both of these innovations are needed, specifically in the modern world where 90% of forex trading is done by computers and algorithms. In fact, 1 in 3 financiers highly believe that automated trading simplifies the otherwise over-complex traditional forex market method. In addition, 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 just under $50 billion ($ 47bn to be precise) in 2020. That number is projected to hit $83 billion in 2025 (development of 48% annually). Long story short, auto trade copiers and forex robots are here to remain, and for good factor.
Are they needed?
The forex market is without a doubt the biggest and most liquid monetary market on earth. Let's look at a few numbers that highlight simply how huge the forex market is:
The global typical daily trade in the FX market is well over $6.6 trillion. For contrast, NASDAQ-- which is the greatest stock market worldwide-- has a trading volume of around $2.2 billion while the NYSE-- the 2nd biggest-- is valued at $2.09 billion.
Regardless of its huge size, the worldwide forex market is neither becoming slow nor decreasing. Some forecasts anticipate that it will grow by approximately 6% annually 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 average anywhere from 9 to 20 trades per month.
What the numbers show is that the forex market is substantial, challenging, complicated, 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 exceptionally unstable. Sure, you can invest weeks and months coming up with a decent trading position. However because of the many, sudden market moves, your position can quickly and quickly turn from a winning to a losing one.
The solution? Choose a forex bot to crunch the numbers for you. Because case, your only task will be figuring out when to go into or exit a position. In fact, some FX bots will go a step even more and instantly set entry and exit points for you.
Better yet, you can use an auto trade copier to mirror winning positions of seasoned traders. Consider it as forex trading for dummies, but with very little danger due to the fact that beginners choose the methods developed by expert and knowledgeable traders. With that said ...
What's an Auto Trade Copier and How Does It Work?
As the name recommends, 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 earn a profit from someone else's skill. You only need to decide the amount you want to invest and then copy whatever 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 become a little bit more interesting. When choosing a trader to copy, you'll wish to opt for an experienced investor who makes a profit more times than he/she makes a loss. That way you'll reduce the opportunities of getting in a losing position.
Even better, you can spread out the danger by dividing your total quantity and allocating each portion to a different strategy supplier. Let's state you have $1000 to invest. You can choose 4 skilled traders and choose an auto trade copier to copy their methods.
If a couple of make a loss from their techniques, then it suggests that the other three or more will have earned a profit. It likewise implies that you will have acquired a winning position from those three or more who made a profit. That's better than assigning the total to one technique provider and after that losing it all.
There are 2 points here. Firstly, your option of method service provider is extremely essential. Secondly, it pays to spread out danger. Uncertain how to pick technique suppliers or spread your risk? Use the allmarketstrading social copy trading platform to immediately pick the very best forex traders on the marketplace.
This software application completely examines traders and chooses 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 strategies.
How does a trade copier work?
The best auto trade copiers provide a forex trading platform (MT4 or MT5) directly to your computer, mobile or tablet. Frequently they'll offer 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-- enables you to view all the positions of the trader you have actually selected. You can then decide which positions to automatically follow and which ones to copy and trade yourself.
Automated-- you pick the traders to follow alongside strategies that finest match your risk profile. After that, subsequent positions and trading are automatically replicated.
Keep in mind that although auto trade copiers are comparable in numerous methods, they likewise differ in other aspects. The allmarketstrading copier, for example, lets you personally choose your investment quantity. It likewise offers you the liberty to go into and exit a position at will.
That's what you want in an auto trade copier. Not one that requires you to invest (and hence risk) more cash than you want. And you absolutely have no organization choosing a forex trading platform that will stick you with a losing technique or lock you out of a winning strategy-- i.e., one that does not enable you to get in or leave a position.