During covid-19 and after a pandemic period, it seems that anything in the world can affect assets price. But you can control your financial well-being and can find different trading ways and strategies. In the past, investing and copy trading seemed a bit complicated for a non-professional or retail trader.

But now, modern financial tech companies have emerged, making trading accessible for everyone. Because of the robotic system and automated trading strategies, trading is easy for a non-specialist too. And there are different trading and investment strategies using copy trading methodology.

So, let’s see in detail what are copy trading signals and how it works, and their pros and cons?

What Is Copy Trading?

It is also known as social trading that allows novices traders to automatically copy the trades of any experienced or successful traders of forex and other financial markets.

Let’s take an example:

Swiss Eagles is a leading copy trading platform providing its services in the UK. Swiss developers developed automated trading solutions for traders and built the platform for copy trading signals. Its tailored investment management solutions help you gain consistent growth with lower and controlled risks. Many traders also search for no-loss forex robots, but such robots usually result in a massive drawdown as they include severe high-risk trading methods.

Where to Start?

You need five steps to start successful copy trading:

1. Search for successful copy trading platform
2. Look for a suitable auto trader portfolio to copy
3. Diversify your portfolio with multiple forex strategies
4. Choose according to your risk
5. Monitor financial results

How Does Copy Trading Work?

There are multiple automated copy trading platforms. What do you have to do?

1. Find and register yourself with a copy trading platform.
2. Select the portfolio or any signal provider. Subscribe to the chosen one. After that, trades automatically copy into your account.

But for professional copy trading signals, you have to pay for it. Either there is a monthly subscription or a profit-sharing model to determine. Every platform has a different method of charging its investors.

What Are Pros And Cons of Copy Trading?

PROS:

• You can achieve decent gains or profit without any trading knowledge and skills in the forex trading market.
• Everything is under an automated system. As an investor, you only have to monitor your account’s performance.
• You can select a portfolio or automated system according to your financial goals.
• You have excessive time to do your work because professional traders are looking after your account.
• You can select multiple signal providers or portfolios to diversify your investment.

CONS:

High-Risks: Forex trading market is volatile. Professional traders can fall into the financial trading business. Therefore, be aware of the risks and be mindful while choosing for trading platform. Make sure the risk remains under control.

How to choose a trader to copy?

1. Proven track record
2. Performance statistics
3. Consistent Returns
4. Risk Appetite

To copy in copy trading is a difficult task. Let’s discuss the above points in detail.

•     Proven track record.

First of all, check the performance statistics of the trader for at least 12 months. After looking at a more extended performance history, it will satisfy you in choosing the best forex trader or portfolio to copy.

•     Performance Statistics

Understand the past performance in depth. Analyze in detail the maximum losing or winning statistics. You need to check its winning streaks and the overall probability of losing trades that should not eat up all of your profits.

•     Consistent Returns

Chose the trader or portfolio, which is delivering consistent results rather than sporadic. You can know this after looking at the performance graph. What you have to keep notice that whether it shows a gradual increase or irregular spikes? If gradual increase then it is easy to choose them.

•     Risk Appetite

Select the signal provider close to your risk tolerance. And check if their trading manners fit with your investment behavior.

Is Copy Trading Safe?

Yes, it is safe, but it depends on the trader or portfolio you choose.

CONCLUSION: 

Concluded this article, even if you have selected a trader to copy, you don’t need to sit free and relax. Learn with the experience, diversify and expand your trading portfolio. In this article, you learned about copy trading, its pros, and the cons of choosing wisely. What strategies can be better than others, and how do they work? As an investor, it is always important to carefully understand and monitor the copy trading options before investing your capital to avoid any nasty surprises.