What is a trade copier and how is it used by forex trading professionals?
The forex trading community has become interested in the option to copy trades from one trading platform to another or from one trader to another. You can achieve this idea by using a tool called trade copier, and as the name implies copying trades from one Forex trade account (MetaTrader terminal) to another.
There is unlimited potential when using this copy trading technology, individual traders or large institutes, fund managers and account managers. For example if you are a successful trader and you have a friend that just started trading and doesn’t do it very well, you can help him and copy the trades, using the simple tool of the trade copier, account managers can manage multiple accounts easier and many more options.
Sharing the success
Many signal providers that are offering subscription on monthly basis are profiting for the relatively new technology of copying trades. Trade copier in its essence allows you to copy your trades and share your success, sharing is caring but in the end you can make a lot of profit from it. If you are a successful trader who wants to share your success you can copy your trades automatically to other accounts, and share your success.
Many individuals are benefiting from successful trade signal providers which are copying their trades, Important to remember signals from human traders and robot traders can be copied the same.
What is an MT4 Trade Copier?
Let me start by saying, Trust only proven to work effectively Trade copier software, many trade copiers has incompatibilities issues and incorrect trade copies. A Trade copier is a software which is installed on two MT4 accounts (master account which send the trades and order), Slave MT4 account which is receiving the trades and orders, these two account communicate all the time and synchronize all settings and data in real time (copying the trades and movements from one account to another). It is happening in real time considering the server and MT4 communications.
Two type of trade copier softwares
In this article we will look at the two main types of trade copiers which are ‘Local trade copier’ and the ‘Remote trade copier’, we will go through all of their features, differences and by the end of this article you will have a very good understanding on how these two types work and how you can work with them. Each of them serve a different purpose, many traders reading this article will find that they need only one of the trade copiers, but professional ones tend to use them both depending the purposes of their work and type of trades they make.
Local trade copier
The Local trade copier is a piece of software which is installed on the MT4 Metatrader on two different platforms. The platforms have to be hosted on the same VPS server or computer and can be used with any broker you want to work with. The software is implemented as an Expert advisor or EA and will provide synchronization and communication between the two platforms in order to copy orders, trades and signals from on to the other, they are on the same computer or VPS server.
Remote trade copier
The RTC, Remote trade copier functions as a trade copier which copy trades and information from one account to another that are not located on the same VPS server or computer and can even be in different countries, This trade copier functions the same as the local trade copier but is used for long distance copying, for example the master account can be located at England while the salve account will be located in Japan.
Essentially you can have a master account that is located in one country that communicates with dozens of slave accounts that can be located all over the globe and the trades will be copied in almost near real time, these allows you to manage customer accounts for a distance and manage many accounts at once without being limited to your own server or computer.
What are the purposes of the RTC (remote trade copier) and the LTC (Local trade copier)?
The LTC, Local trade copier is best explained as software that copies trade from one platform to another while operating on the same computer or VPS. Let’s say you have an MT4 trading account on one platform and you want to replicate the trades to a second account, that is where the LTC plays its role, you can easily and automatically replicate all of your orders, pending orders and trades from one account to another without worrying about anything.
The RTC is essentially doing the same as the LTC, only communicating with two different VPS servers or computers, it is copying the trades, pending orders and settings from one platform to another even if they are not located at the same the server or computer, this allows you to manage multiple accounts from a distance.
This can be done in both types of Trade copiers even if they are using different account types or different brokers.
Additional settings and options that can be configured with the local copier
There are many additional features that can be configured in the LTC account that will allow you to diversify and even test different methods to increase your profit, let’s say for example you want to copy trades from a master account to a slave account using a different percentage risk, this can be achieved if you want one account to be a fast growth account which mean take greater risks when putting orders, you simply need to determine a different percentage risk value to one of the account to make it a faster growth account, this allows you to achieve different profits using two different strategies on copied orders or trades.
That way you can manage different growth rates using different risk percentages but only using one main account that you input trades on. Meaning one account will use the high risk percentage and the second account will use the low risk percentage while you input orders only in one account, this can be implemented in multiple accounts, letting you do different strategies for trading using only one master accounts on multiple slave accounts.
An account manager benefits from a local copier and automatically copying trades to a handful of other terminals
Let’s say you are a successful account manager that is managing different customer accounts, your job is to make these accounts profitable, but you are overwhelmed by the need to place multiple orders in multiple accounts and in multiple brokers or platforms. The solution to this issue is easy!
For example: You have multiple accounts on your server and you are using A local trade copier version, that means you are managing different accounts on different terminals all located on the same computer (the accounts of your customers)
You would need to place the same or different order or trade four or five times getting in different platforms, which be not only difficult but nearly impossible, but because you have a LTC (Local trade copier) on your platform you can manage multiple accounts by trading in one account (the master account). The trade copier will automatically copy all of your orders and trades to the multiple customer accounts. As well.
Think that you just made the same trade with all parameters and entry price in multiple different accounts at the same time. The trades are copied in real time speed and usually take less than a second to appear in the secondary (slave) account; this ensures you that entry prices are as close as possible to each other.
You can easily set different parameters to different LTC accounts such as risk percentages or lot size. You may specify different lot size and risk values for different accounts when setting them up, these are only a few of the features you may customize when using the Trade copier.
Expanded uses for the Remote Trade Copier
The remote trade copier (RTC) is an efficient tool for any trade signal provider or account manager with different customers, The primary use of the RTC is to manage or share trades with multiple users that are located on different VPS servers or computers, it is a one in all solution for signal providers or account managers with different location customers, it provides with the same set of tools as the LTC with many other features and plugins.
Let’s say you are a professional trader that publishes his trades based on subscription fee, you may use an e-mail to publish your trades, but emails are very primitive. E-mails are effective don’t get me wrong but today, with the remote trade copier service you can upgrade yourself.
What if there was a seamless solution to help copy your trades into the accounts of others who are subscribed to your trade alerts?
This is the main power of the trade copier, it is allowing you to copy trade signals with the put most efficiency, you can take a signal from one account and copy it to hundreds of accounts in under one second, are you staring to understand the power of this tool?
It is now easy than ever before to build a successful business around a successful trader without any extra headaches, The RTC will be the bridge and communicate between the master account and the salve accounts.
Can a remote or local trade copier be installed on a VPS (Virtual Private Server)?
A VPS is a great tool for any trader. To put it as simple as possible, a VPS is a virtual server that stores information and is located in a Server farm, it is a virtual space allocated out of a bigger physical server and it is software based. This is a far better tool than a home computer as for most servers the uptime is much better.
You MT4 and LTC will be installed on a server much like your computer, which you will gain access to using a special software, remotely from your computer or any computer, remember that the VPS is much stronger than your home computer and much safer in case there is an electric failure or internet failure.
Many MT4 traders are running their platform and software on VPS servers, many of them are using Local and remote trade copiers to manage multiple accounts safely, the local trade copier can be installed and implemented on all server types and many traders already doing so. There are many companies that provide Virtual private servers and it is Okay if you know about a good provider, I will recommend this provider as I know them to be a good service provider – www.vpsforextrader.com
What if the accounts being copied to are of different size than the ‘Provider’ account?
The trade copier was designed to work freely even if you have different account types or different brokers, the Trade copier will copy trade from a $5,000 to a $250 account the same as a $5,000,000,000 account to a $5,000 according to the settings you apply, all the settings and trades will be correctly copy from the master account to the slave account no matter what are the account type. Here are some extra settings you can work with on the ‘slave account’ (the one that receive the data), using the trade copier
- You can set a fixed lot size for each trade
- You may set a certain percentage risk for each trade (measured according to the account size and the size of the stop loss)
- Matching the same risk that is used in the ‘master’ account (the one where the trades are copied from). This is one of the most popular risk settings.
- Choosing whether to trade certain currencies or whether to reject other currency pair trades
- These are just a few of the many settings available on the remote and local trade copiers.
The trade copier will do its job perfectly even if there are account differences, all according to the settings and strategy that is applied on the master account.
Do all the same charts need to be opened to receive trade signals on different currencies?
Essentially no. You will need to open only one chart to receive the copied trades. It is supposed to be a chart of one of the major pairs (ESDCHF, GBPUSD, AUDUSD, EURUSD, USDJPY). It doesn’t matter on what pair the TC will be installed, it will still send and receive trades of any pairs.
Can a trade copier reverse trades between two different accounts?
Yes, if you are working with a losing EA or for example you are losing money consistently, you may use a reverse strategy trade with the trade copier and make losing accounts into winning accounts, doing a reverse trade will allow you to experiment different strategies and to do the losing trades in the opposite direction making them a winning trade.
Why not just reverse a losing strategy for profit?
It is not simple as it seems, because it has to relate to the take-profit and stop loss levels, and to the spreads. When you are doing a reverse trade you are paying for the spread twice, why is that? The first account is losing two, three pips and then closing out. Those two, three pips were just the spread on the trade, since you are doing reverse trading meaning you do it backwards, you will have to pay for the trade and the spread which will lead you to have an ‘equal’ on the negative \ positive ratio.
If you do have a strategy that consistently losing money and it has a large pips amount than doing a reverse trading strategy might work well and you will be able to profit from it. But remember not all poor strategies can be reversed, if you do not have the spread you need and amount of pips you’ll just mess it up.
Trust me on this one, it is complicated to explain why it is not simple to just take a poor strategy and make it to a winning one, many systems are with a losing ratio just because they are paying out a lot on commissions. It might be that they have even 50% win-loss ratio, but because they are winning a small amount of pips every time the commissions are high and the profit is small.