Mirror trading is another kind of a forex strategy that is often mixed up with auto trading. The Mirror trading strategy, not surprisingly, is popular among forex traders because it is a simple approach to trading. In a market that is known for its volatility, utilizing forex strategies is important. Following a seasoned trader by way of mirror trading their trades can be much more successful than self trading.
With mirror trading you can simply mirror the methods of successful traders in your own Forex investments. Mirror trading is great because it allows investors to choose strategies that fit their personal needs. Mirror trading is completely different from auto trading and requires a special platform, Tradency or Zulu Trader and is offered by some forex brokers. Read more about Tradency’s Mirror Trading Platform.
Mirror Trading and how it differs to Auto Trading
In auto trading you put your trust, and your money, in the hands of an automated Forex bot that decides to buy and sell for you without letting you know about their methods and strategies. With mirror trading you have more say in the process. You can research and choose from over 100 different strategies when you trade Forex using mirror trading.
For instance, some strategies are better for specific currencies-what works for trading between USD and Euro (USD/EUR) may not work for trading between USD and Japanese Yen (USD/JPY) and what works for investors making large trades may not work for those trading smaller amounts. When you choose a broker that offer mirror trading you can do the research to choose the strategy that is best for your portfolio.
Another nice thing about mirror trading is that investors can purchase results to compare different strategies to see which is most effective. This is something that is not available in the world of auto trading, as most auto trading platforms are competitors and don’t share information that judges them against the competition.
Mirror trading, when the research is put in to choose the best strategy for you, can pay off in the world of Forex.
Mirror Trading – Getting Started
Getting started with mirror trading is simple and doesn’t involve much experience. A trader must first research the best mirror trading strategy (or strategies) that work for him or her by logging into the mirror trading platform. This will depend on such things as the amount of money you wish to trade with, the risk you are willing to take and the direction you want your portfolio to go. Once a forex trader has selected the strategy (or strategies) for their portfolio, the process begins and the mirror trading takes place. One advantage of this type of trading is that unlike with self trading, emotion is taken out of the equation. Often, traders will close trades because they are frustrated or open trades because they are scared of being left behind while the currency climbs.
A trader panics and gets out too early or stays in too long. Emotion can be an almost impossible obstacle to get around. However, if a trader uses the technology, automatic signals are executed on the user’s account, which follow the techniques of the chosen strategies. Another advantage of using mirror trading technology is that it works 24 hours a day, so you don’t have to. If the USD spikes at 5pm due to a government policy announcement, or if the Euro slips at 2am because of an economic statement, your trade will react as a result of the target points that you or your mirrored strategy set. Your entire trade is run by a platform that works 24 hours a day.
Features of Mirror Trading
- Use the knowledge of experienced forex traders
- Real time forex signals that you can manage and control
- Verify your trading decisions by comparing other strategies and traders
- Live signals and strategies, details analysis
- Live charts (all available currency pairs), indicators, rates, oscillators
- Back up your trading decision with market trends from strategies and users
- Use Auto Mirroring, Semi Mirroring and manual trading all within the one trading platform
Mirror Trading – Forex Brokers
The following forex brokers offer the mirror trading accounts that enables traders to mirror the trades.
AvaFx – AvaFx, an ECN/STP dealer, minimum deposits starts from $100. Open a live account in order to make use of the Mirror Trading platform. AvaFx additionally offers the semi mirror trading option as well. Read the AvaFx Review