Robot Trading Profit Continuously? Pay Attention to This, Don't Copy Blindly!
It is important for you to know that currently, the Forex industry technology is much more sophisticated than the stock or bond and mutual fund trading industry. The use of Trading Robots or Expert Advisors (EA) and Copy Trade is increasingly in demand by Forex traders.
Not without reason, because there are indeed many advantages that can be obtained from trading with EA such as:
- Passive Trading
All trading activities are carried out automatically according to the algorithm that has been coded by the developer or master trader. - No need to monitor the chart 24 hours a day
Traders can sleep soundly knowing they will not miss the right moment even if they are not monitoring the charts. This is the reason why forex traders are much more efficient than stock traders or other instruments - Discipline in Money Management
By using EA, all money management is included in the EA coding algorithm so that all trading actions are carried out automatically. - Eliminating Psychological Bias
If trading is still done manually then this will not be separated from psychological elements, namely greed and fear, so it can affect our trading results.
Check This Before Copying EA or Copy Trading from a Master Trader!
However, before deciding to copy a trade from an EA or Copy Trade service that claims to provide continuous profits, there are some important factors to consider. This article will discuss several crucial aspects you should be aware of before copying a trading robot that claims to deliver consistent profits.
- Historical evidence of this EA's performance.
Never trust EA or master traders who cannot show proof of their trading, either history from MQL5, Myfxbook, Fxblue or from trusted platforms such as GICTrade. - Duration of EA/Master Trader Running
From historical evidence, how long has this EA been running? An EA that has only been running for a few years is certainly much more credible than an EA that has only been running for a few months or weeks. - EA or Master Trader Performance Fluctuations
Is there a significant fluctuation in the performance of this EA every month, for example this month +20%, the next month -25% then the following month +100%. Of course this depends on the risk profile of each client, but this can provide a little preview of what to expect by copying this master. - Drawdown
How much is the drawdown of this master? Drawdown is one of the most important indicators in copying a master or EA. Drawdown shows the percentage of maximum loss from the master's performance. Although a master shows high gain performance but also has a high drawdown number, this shows how much risk is experienced by this master to produce the current gain. Are you ready to accept a Floating Loss position of X% to get Y% performance? Try to reconsider. - The capital used by the master and what minimum capital is required
Of course we need to know how much the minimum capital is and how to set it to use EA or copy the master trader so that the performance produced is also maximized. Is there a need for reserve funds to increase resilience in the event of a high drawdown. - Strategy used, does this EA use risky strategies such as Martingale, Grid or Averaging?
Martingale, grid or averaging is a strategy that opens additional positions even though the market does not move in the same direction as the previously opened position in the hope that the market will reverse and generate profit. This strategy is often found in master performance that never loses and provides fairly high gain performance every month, but if the market is running fast and in the same direction, the account owner can lose up to MC (Margin Call). These strategies are not bad strategies and some EAs of this type can even provide long-term performance too, but traders need to know the risks they face. - Can be used on any Broker or not
Because many platforms have a conflict of interest between Traders and Platforms or Brokers (where if the trader loses, the broker or platform wins), traders need to be careful if the EA or copy trade can only be done for certain brokers.
Social Trade Is The Answer For You Beginner Traders!
One of the broker-free Copy Trade platforms that you should consider is Social Trade from GICTrade, where traders from any platform can register as traders and traders from any broker can also become followers by copying the trading of the master so that there will be no conflict of interest between traders and the platform.
Not only that, you also don't need to worry if the master trader and you have different versions of MetaTrader because the copy trade action between MetaTrader 4 can be copied to MetaTrader 5 and vice versa (cross platform).
In the Social Trade Feature, it also displays all the history and performance of the master clearly along with the minimum amount of capital required to copy or reverse (against) the position of this master trader, making GICTrade a favorite platform among traders.
The GICTrade platform is the first P2P Forex Trading platform in Indonesia that uses blockchain technology where customers can choose to become traders or Market Makers (“dealers”), thereby eliminating the classic problems of conventional brokers who always have a conflict of interest with their customers. Click here to join!
Enjoy easy trading and taking profits all in one app. Register now!