Copy Trading:  Safe Approach and Strategies 

How to Do Copy Trading?

Copy trading is a digital trading process, in which the investors can copy the trades that have been previously done by experienced traders. 

The investor follows the step of a professional trader to earn profit and gain knowledge. Copy trading is beneficial for both the investor and the trader.

With the help of high-tech innovations, copy trading has become one of the quickest and easiest processes. 

The following trade can be easily copied into the account of the investor with proper risk management.

But, the deciding move will be made by the investor. The investor has to analyze the best deal with all the data and knowledge to make a decision.

Steps to Start Your Copy Trading Journey

Investors approach various paths for copy trading as per their requirements and abilities. The following are a few ways to start copy trading.

• Following the trader who trades on multiple financial stocks. This trader helps in diversifying an investor’s portfolio.
• Copying a commodity trader or forex trader.
• An investor can also copy the traders who work along various time frames.
• Before starting copy trading an investor should be aware of high-return volatility and low-return volatility. 
• Also, compare the active status of the traders.

Portfolio For Copy Trading

A portfolio for copy trading is all about balance. The goals for an investor should be less potential risk and higher potential profit. 

Investors can set their goals by understanding the market and analyzing their limits, then they should choose the Copy trader.

There are a few criteria for balancing a portfolio-

• Strategies that prioritize low-risk or high-profit.
• The total volume of traders’ assets
• Allocation of assets in different classes
• The frequency of transactions made.

Copy Trading Strategy For Crypto

Copy trading strategy is one of the influential methods because it is much quicker and simpler to copy the formula of the trader. Then the investor can earn equal profit from the exchange. In Copy trading, the platform allows investors or users to trade based on a particular set of indicators and rules. There is low decision-making and subsequent pressure in the copy trading strategies.

Traders to Copy

It is wise to not copy traders based on their return on investment (ROI) only. For successful exchanges, examine the overall performance of the trader.

• Grid strategy- The trading is beneficial for low-risk takers. An investor can copy the trader with a ratio of 100:1 leverage.
• FastwaySignal- It is a trend system based on the factor of correlation. If the right strategies are applied, correlation can be highly profitable, 7-10% monthly ROI expected.
• ThewinnerTakesAll- The trader employs the combination of three tools; RMI indicator, candlestick pattern, and daily time frame trend. 
• Hansheng: It is recommended for investors who seek copy trade with safe returns. Also, the trader has experience in this field.

Automated Trading

Automated trading enables users to participate in the financial market by incorporating a specific program that runs on previously set rules to enter and exit trades. A trader connects their technical analysis with set parameters. The parameters are stop trailing, orders to open, and stop guarantee.

Automatic trading allows investors to go through many traders in less time. Another benefit is that a user can always go for pre-determined strategies that can be used to follow trades and trends.

Benefits of Copy Trading

• Beneficial and an easy guide for beginners- Initially learn from successful traders, gradually understand the strategies, and earn profit.

• Less planning, more output- it is a low-risk and low-return investment. An investor is free to make their own decision as per their potential and requirements.

• Lower decision-making situations- the fewer decisions to make, the better the result will be. Mirror trading determines the opening, closing, and changing of trades.

• Trustworthy results- Before uploading any mirror trading, the broker examines and validates the result of that trading strategy. It helps in highlighting losing trades.

FAQ

Does copy trading work?

Yes, copy trading works to earn profit. By selecting the right platform one can earn profit consistently.

Is copy trading legal?

Yes, it is legal in most of the country.

Is copy trading good for beginners?

It is the best platform for beginners to start their trading careers. The low-risk and easy guide help many investors to invest safely while making money.