It involves depositing funds into your brokerage account, linking your account to one of the best trading strategies or best-performing traders, and then allowing the algorithm to do its thing. There’s no need to research any trade idea or place any trades yourself. Key metrics used when selecting bots for the Marketplace include risk-adjusted return, minimum trading activity, and time under water. And since the crypto market is a volatile one, all bots are backtested in different market conditions such as bull, bear and sideways market regimes to ensure consistent returns.

mirror trading vs copy trading

The founders say they’ve launched the platform to make investing and online trading accessible to everyone. Many companies realised the business opportunity and started to build automatic copy trading services, where users could automatically copy the traders of other successful investors. Most people have copy-traded at least once in their lives, by following experienced traders on Twitter or Discord into a trade. This way of manual copy trading is available for purchase as well, with many “influencers” acting as paid signal providers, usually in private Discord groups. The followings are the top five best crypto mirror trading platforms. reports a 143% surge in trading volume for May YoY

Mirror trading allows investors who are copiers or beginners to link their accounts to an experienced trader and mirror their positions entirely. An Expert Advisor (EA) can also do this process based on algorithms on their behalf. If you’ve wondered whether there’s a way to get in on the action, mirror trading or investing may be the answer. When you decide to trade with mirror trading, you’ll need to invest a large amount of capital from the start.

While this scenario is very rare, it needs to be included in a strategy where this situation could happen, especially in the foreign exchange market. It is also useful for traders to gather information about the products and asset classes they are trading. For instance, it will be much easier for a trader to exit positions in EUR/USD, compared to liquidating emerging currency pairs​​. When copying traders that focus on emerging market currencies, you should examine the slippage incorporated into their returns, which can be significant during periods of heightened volatility. One should also ensure that the bid/offer spread of the currency pair or security is not eroding the copy trader’s returns.

What Is Mirror Trading? Here’s What You Should Know

Therefore, a copy trading investor is restricted to only a few assets or currency pairs. Because of this limitation, mirror trading may be very risky; particularly for investors who have a short term goal. This goal can be achieved through constant backtesting of small changes in the price patterns. Located in Amsterdam, Netherlands, Cryptohopper is an automated trading platform for cryptocurrencies that allows crypto traders to automate their trading strategies. When you need advice on life’s journey – you never go to someone who has never escaped their jungle.

mirror trading vs copy trading strengthens C-suite team with Andreas Lambrou’s appointment as CFO. With over 12 years of experience in the industry, Mr. Lambrou’s onboarding reiterates the broker’s commitment to best practices and innovation. Having the clients’ best interest at heart in this volatile economic environment, tightened spreads on all FX pairs, providing some of the most competitive trading conditions on the market. Abu Dhabi-based global broker has promoted George Pavel to an expanded role as General Manager according to information made public on his LinkedIn profile. The multi-licensed global broker announces its first M&A deal, the acquisition of the book-of-clients of the well-established, thus expanding in the Greek market. Whether you’re passionate about green energy, space travel, games, or the energy sector – we have a pre-defined ThematiX portfolio ready to be traded in seconds.

Mirror Trading Is Best For…

Mirror trading, as the name suggests, is when you mirror the trading strategy of other traders. I said, other traders, because companies that offer mirror trading combine the strategies of their top traders to produce reliable and accurate signals for their consumers. You can choose to follow different traders at different times, follow multiple traders or to stick with the same trader consistently.

Liquidity risk means that one may not be able to exit positions at expected levels. A trading strategy’s risk management​​ method should have a historical precedence so the trader can see the copy trader’s maximum historical drawdown. The maximum drawdown shows the peak-to-trough decline during the life of the strategy. This is a very important figure as it lets traders see historically the maximum amount they may be comfortable losing at any given time if they choose to enter the strategy. This means that one can expect to lose at least 20% at any point once they start copying the trader. Launches Share Dealing and ETF Trading Product – CAPEX Invest

Mirror trading platforms combine the strategies of their top traders to create an algorithm which sends a signal which your trades will be based upon. Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work,
and whether you can afford to take the high risk of losing your money. Trading volatile financial markets with Copy Trading Vs Mirror Trading can be challenging, even for experienced traders.

mirror trading vs copy trading

Forex, Futures, Options and such Derivatives are highly leveraged and carry a large amount of risk and is not suitable for all investors. All content (news, views, analysis, research, trade ideas, commentary, videos or articles) on this website or this website’s subsidiaries does not constitute as “investment advice”. Mirror trading provides investors with access to the profitable strategies and trading insights of experienced traders, who themselves have a successful track record of investing in crypto. As with any service, crypto mirror trading platforms usually charge a fee, which can be either a percentage of the profits generated by the portfolio or a flat fee. You need to be an experienced trader yourself to be able to avoid successful traders’ mistakes. Beginner investors should not opt for an automated trading system because it may not help them learn the ropes.