Advantages and disadvantages of the service of copying trades in the market
Today there are many methods of alternative trading on the foreign exchange market. One of such methods is copying trades of successful traders with the help of special software. Services of copying transactions in the foreign exchange market are quite popular and more transparent than trading with Advisors. Let's try to assess the pros and cons of the deal copying service.
Advantages of copying trades
Each trader has his own requirements. According to them, the service of copying trades on provides him the opportunity to choose a trading strategy that will satisfy them as much as possible.
You can see the results of trading according to the strategy chosen by the trader before joining the service of copying trades. Compared to the robot service, the trade copying service allows you to see daily updates of your performance.
Based on the data provided, the trader can get information about the trading instruments, the number of profitable and loss-making trades, the duration of transactions, the value of the maximum drawdowns and so on. Having analyzed the parameters that interest him, the trader can reasonably make a choice of trading strategy.
Trade copying service, which is very important, eliminates the emotional component, relieving the trader of worries about the right or wrong entry into the market. Trading using the service of copying trades does not depend on whether the terminal of the client who has joined the service is switched on or not.
A very important feature of the deal copying service is the ability to trade in parallel and manage already open trades. Nothing prevents one from closing a trade manually if there is a fear of losing the profit gained, or from opening a new trade if there is a clear signal to enter the market. Along with that one should realize that if you make some corrections you can break trading tactics, which is followed by managing trader, which might be critical for a client.
Disadvantages of the deal copying service
The situation on the market is constantly changing, so you can't just join a copying service and take profit regularly. It is necessary to constantly monitor the dynamics of what is happening in the market. In this sense, copying transactions is not a full-fledged investment. Only the client controls his account, the "manager" trader There is nothing to do with him. Therefore, it is necessary to constantly monitor the market situation and the state of your account.
The results of trading are quite relative, because they are true for a certain account (the account of the managing trader). Therefore, it is very important to correctly determine the parameters of copying trades, depending on the ratio of the size of deposits, leverage, etc.
The very expression "managing trader" is used by us for the sake of convenience and is essentially incorrect, because the trader trades exclusively on his account and with his own money, while the client, using the service, automatically copies his trades to his own account. The "managing" trader often does not even know how many client accounts copy his trades.
This leads to two conclusions. First - the "managing" trader does not bear any responsibility in case of loss of any funds by the client, unlike the manager PAMM account. The second - a few losing trades on the deposit of the "managing" trader can be a small drawdown, while the client deposit of a smaller size will simply cease to exist.
To complete the picture, it is worth to indicate a clear difference between the service of PAMM-accounts and service of copying trades. If PAMM - it is investing in the currency market, when the client puts his money in the PAMM-account manager, with all the ensuing consequences, the service copying transactions - this opening of transactions, similar to those that are on his deposit selected by the client trader and is not an investment, which does not prevent him from having a high popularity among the alternative methods of trading in the foreign exchange market .