From trading floors to basically anywhere, trading has developed over the years, and it is fair to say that it is easier than ever before. Electronic trading systems made it easier to execute buy and sell orders and receive and analyse various markets in a few minutes.
Not only has trading become simpler with trading software like MetaTrader, but the learning curve has become shorter thanks to social and copy trading techniques.
Investors can now follow the steps of market experts from the copy trading software on MT4, selecting the investment strategy and assets they want and automating their activities on the trading platform. Let’s discuss how this tactic works and how you can use the MT4 trade copier yourself.
Understanding Copy Trading Software on MT4
Copy trading is a popular investment strategy that entails relying on a certain system determined by a trading expert, including the choice of markets, assets and risk tolerance.
This style was designed after the growth of social trading communities, where investing enthusiasts, newbies, and professionals discussed market updates, news and tactics on online platforms.
Today, the social trade copier has developed into a full system managed by a portfolio manager and facilitated by the trading platform you use.
MetaTrader 4 is one of the world’s most popular trading platforms developed by Metaquotes. This software is known for its simplicity and user-friendliness, besides being adaptive to recent breakthroughs in technology, such as trade automation and AI.
Copy trading makes it easier for beginners to enter the market with a basic understanding of how trading works. Moreover, it allows new entrants to learn by doing, meaning that they can copy a certain trading system and study their activities.
How to Start Forex Copy Trading
Copying a trading strategy can be done using a trading platform, such as MetaTrader 4, which offers multiple styles in its social trade copier option. You can check the trading systems and review the history of each approach to find the Forex copy trading strategy that suits you.
Alternatively, you can use an MT4 white label solution that develops customisable trading software. Pre-built trading platforms are highly flexible and can be adjusted to your preference while utilising the technical support of the provider.
Starting with copy trading in MetaTrader 4 can be done in the following simple steps:
- Create an MT4 trading account on a broker’s website.
- Launch MetaTrader 4 either from the Webtrader or the dedicated application.
- Find the “Signals” option from the bottom toolbar.
- Select a suitable signal provider and go through their copy trading strategies.
- Subscribe to the preferred trade copier. Note that some providers are free of charge, while others may impose weekly or monthly fees for their services.
- Adjust the trading lots, stop-loss and take-profit levels and check other parameters before applying the strategy to your chart.
It is crucial to analyse the outcomes of the strategy and adjust your inputs continually to improve your style and cope with market changes.
Finding The Best Forex Copy Trading Source
There are many trading platforms that offer similar services, including copy trading. Therefore, it is important to ensure your chosen trader checks the below boxes.
Flexibility: Unlike mirror and algorithmic trading, copy trading requires the user’s input in choosing the traded lot, risk tolerance and stop-loss indicators. Therefore, check out the available parameters and the degree of freedom you can exercise in copying a particular trading system.
Reliability: The speed and uptime of your trading software are crucial to ensure that your orders are executed with minimum slippage and zero delays. Slippage refers to the slight price difference between the time you trade on your platform and the time the asset is “actually” bought/sold in the market.
There are several factors that affect price slippage, such as market depth, liquidity levels and asset class. Therefore, make sure your chosen trading platform provides high liquidity and a deep order book.
Support: Responsive customer support makes copy trading more efficient by providing assistance through live chat, email, or phone to solve the trader’s issues or give directions on how to use the social trade copier.
Copy trading software on MT4 allows investors to follow the steps of experienced traders with proven portfolios and profitability.
However, choosing the right Forex trading copier is challenging, requiring you to research the selected platform’s reliability, flexibility and responsiveness.