There are many ways to copy traders, from social media style platforms to using EAs and bots. Follow the most successful traders in forex trading today, with my useful guide on how to copy traders.
Copying Traders For Profit
Copy trading is one of the leading options you can use to profit from forex today. For those less experienced traders who don’t have years of trading under their belt, it’s an easy solution to determine the right trades to follow and invest in.
I’ve amassed a great deal of experience in forex trading over the years TradeWise is here to help you get to grips with how copy trading works. Confusing at first, but entirely compelling, it is now one of the most popular trading ‘strategies’ for those who lack the spare time to intensely scrutinize the markets.
As always, we provide brutally honest advice on where to go to find the best copy traders to invest in. Always remember there are risks involved, however, and that no trading strategy is completely risk-free. But with our guidance, you can seize the right opportunities at the right time, with the right copied trader. Here’s our guide on how to copy traders successfully.
A Brief Overview of Copy Trading
Copy trading is where you choose a trading individual that you trust, and replicate the trades that they make within your own forex portfolio. This is often done automatically, as plenty of EAs and autotrading bots allow you to link your own trades and investment amounts to the selected trader you copy from. When copy trading, your investments often also follow various guidelines set by the individual trader, including stop loss orders and take profit orders.
It is important not to get copy trading mixed up with mirror trading. Mirror trading actually began before copy trading became popular, and is a completely different method. Mirror trading is where you copy an individual’s particular strategies, rather than exact trades.
Many trading platforms and the whole idea of forex itself can seem quite inaccessible to those who are unfamiliar with how it all works. It can be difficult to determine where to start off to gather research, find other traders and eventually, work your way towards impressive gains. Thankfully, you are in the right place to gather your research. So, how do you actually get into copy trading?
How to Get into Copy Trading
To start off with your new venture, you need to find a reputable social style trading platform to follow. There are many platforms out there that offer extensive lists of traders to copy, as they detail their exact movements within the markets.
Look into multiple traders at once, determine which currencies they invest in, and diversify your copy trading portfolio. The opportunity to diversify is one to take advantage of, as it minimizes the risk of loss that can occur if you only focused on investments in one niche area of the market. Diversification is made easy with copy trading because you there is no requirement to actually understand the market fully; just select a variety of traders to copy and you’re all set.
With up-to-date reviews released by myself for 2021, brimming with honest opinions from my years of expertise in forex, you’ll struggle to find a more up-to-date source for reviews. Here is a short review of some of the best social style trading platforms to get you started:
- Zulutrade – 2 Star
My 2022 review of Zulutrade doesn’t get off to a good start. With a new year, we expect new achievements, but this is not the case with this particular social trading platform. Disappointment is combined with struggle as I navigate my way through the best traders to copy on Zulutrade. Zulutrade has just a 2-star rating from me, as it’s hard to make consistent profits on the platform. This is backed by the lack of traders with over 3 years’ experience in the industry. This lack of experience threw me off, as I struggle to put my trust into their strategies while they lack the knowledge they require to succeed.
While their platform design is easy to use and navigate for starters, one point to consider is that I do get many questions that ask if Zulutrade is a scam. This is perhaps down to the lack of ability to make good profits that people, just like me, experience while they use the service. Unfortunately, this also relates to my own experience on a personal level, as I made no good returns. It’s not a scam, but it’s certainly not the best option to make gains with.
- Yieldnodes – 5 Star
Here, I review Yieldnodes with high expectations. A cryptocurrency investment source that utilizes automated trading, that requires little involvement from you, the user, it’s a go-to service for automated copy trading. If my expectations reach a sky-high level; and I find no disappointment in the service even now, it must be a good one. All countries can use Yieldnodes, while there are also no upfront or monthly fees – don’t get caught up with subscriptions you may forget about later. With the best track record around, I give Yieldnodes a maximum of 5 stars in my honest review of the platform.
One negative was the requirement that you need to purchase Bitcoin to enter, however, this is negated completely in my eyes, due to the excellent investment potential that Yieldnotes provide me with. I make great returns, at a rate of +13.5% each month right now, with the potential to rise as I hold. I recommend Yieldnodes for those with little crypto experience, as it’s all automated and it’s free. Keep in mind that it’s also amazing for diversifying your portfolio.
- eToro – 2 Star
You can check out my recent 2021 review of eToro, the controversial trading platform. From slamming it as a total scam, to those who portray it as the best thing since sliced bread, there are plenty of split opinions on the autopilot copy trading service. I am a regular user of eToro, so I gather plenty of experience along the way, in order to justify why I rank them as a 2-star platform. They simply don’t hit the mark with their quality of traders. Margins are high, and while the platform is user-friendly; I think starters will struggle to make good investments if you follow eToro.
- Elysium Capital – 5 Star
One of my favourite copy trading services, without a doubt. This review went by with a breeze, as I find Elysium Capital to be absolutely genuine and safe to use if you worry about risk. After using the platform for a while, I quickly realize just how incompetent some of the alternatives seem to be. Elysium Capital works with developing EAs, the bots that copy trade automatically and gain profits with ease.
I love this platform for its range of strategies you can choose to copy from. With dedicated strategies running for almost a decade, to rather more new additions that prove their great track record with high returns, choose from different strategies that operate within different risk margins. Alongside this, there are no monthly subscriptions. Their profits are taken as a portion of your own profits, so they stick to extremely high incentives to improve their EAs in order to boost your profits.
Looking to start off with Elysium Capital? Follow this link to join the ultimate copy trading platform out there right now.
You need a significant amount of trust in the idea that the trader you copy from has a solid understanding of how the forex market and currencies they invest in work. You’re essentially relying on their movements to make you a profit, and it’s always important to remember that you can make a loss.
That’s why I go into such detail in my reviews of copy trading platforms. My extensive forex experience allows me to determine which are worth using, and which can eventually make you go bust. Fortunately, I’ve developed a certain level of brutal scrutiny in reviewing trading services, which allows me to catch out those who aren’t working towards your best interests. Lacking the time you need to sit and read the full reviews? I’ve made video versions on YouTube, so you can easily watch them on your way to work or while eating lunch.
Now that you know the social style trading platform you prefer to use from the above list, let’s look into how to choose a specific trader to copy from.
Choosing a Successful Trader to Copy
There are a few criteria you should look into when selecting the specific trader you want to copy. You’re putting trust, emotion, and even your money, into their hands. Here, we outline what you should be looking for in a reputable trader:
- Consistent History of Success
We want to copy those with experience, and those that utilize their experience, to make consistent, reliable positive returns.
- Make Sure They Inform Followers
Those traders who update followers with their movements, and why they’re making said movements, appear more trustworthy and transparent.
- Check Their Follow Counts
The more followers a trader has, the more likely they are to build up a consistent rapport with their copiers. They do this as they achieve great returns on investments over time, and prove their success in trading as they do so.
- Take Advantage of Social Trading Networks
These platforms allow you to see what everyone’s doing, in real-time. If more people are following a certain trader and their strategy, it signifies that a significant amount of people believe that it will make a profit.
- Observe Which Strategy They’re Using
Each trader uses a different strategy. You might find some strategies ridiculous, so those will be the traders you’re less inclined to copy from.
- Determine Whether They’re Using Their Own Money
A trader using their own money is much easier to put your trust in. It’s their own capital that’s at risk here, so they’re going to want to make great returns just as much as you do.
- See How Often They Make Negative Returns
If the trader you’re looking at has frequent negative returns, consider why. Do you have the patience, or money, to be consistently in the red? Perhaps they’re making losses, and you don’t want to get involved.
- Evaluate Their Risk Score
Each trader has a risk score, valued from 0 (very low) to 10 (very high). Keep it safe by copying those traders with a risk score of 7 – 10. To keep a risk score, the trader must maintain the score for 2 months or more. This shows consistency in their trading skills, and the potential to earn sums of money from them.
- Look at Stop Loss and Take Profit Levels
As you copy trade, you’re also copying the trader’s stop loss and take profit ideals. They might not even put a stop loss amount in place, which leaves you at risk of unlimited potential losses.
- Review Emotional VolatilityWhile forex markets and day trading can be very volatile; those trading can become emotionally volatile, too. Observe your trader’s past – if they show a significant loss at one point, check how they respond to that loss. You can often assign emotional unpredictability to the way they trade. If they make trades that don’t follow their strategy from time to time, for example, they might not be the one to copy.
Trading Services and Newsletters
As so many people speculate and come together to predict the up and coming fluctuations in forex trading, there is an abundance of quality resources to follow as you focus on copy trading. If you find this guide helpful at all, why not subscribe to my email insights on forex trading?
Bots or EAs
Automated trading is the easiest way to copy trade, if you’re looking for a simple option. This is where copy trading first originated, when automated trading was referred to as algorithmic trading. Since 2005, it has improved drastically, as we now sign up to use a copy trading platform, sit back, and reap the rewards! Many people even forget we’re investing in trades, as it’s so easy.
Choosing the best bots, EAs, and copy trading services to go with is no easy task. This is why I regularly take the time to review the best auto trading bots and EAs as they are released. My top 3 guides to the best bots and EAs to use when copy trading can be found here.
Tried and Tested Forex Trading Advice from TradeWise
At TradeWise, we focus on testing and reviewing the best ways to trade with forex, from copy trading to evaluating social platform services. You might be just getting started with forex, looking for an easy way around learning all of the complex industry insights. Even if you trade regularly, but are only seeing limited success, we provide just the advice to help you get back on track. Sign up for email updates to get all the latest news on copy trading, EAs and bots.
As an individual, I have over a decade of experience in trading foreign currencies. It’s this culmination of effort and experience that I combine with my passion for sharing essential trading knowledge with others, as I review the best EA and autotrading bots for you to choose from. Get on board: start investing (and earning) today.
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I’m Jon, owner of Trade Wise at https://tradewise.community/ and https://www.youtube.com/channel/UC7VmOx8DbvX4Rbrac2pPcjw
I review forex and crypto trading products and services to find the best of what’s out there for creating a passive income without becoming a full-time trader.