Copy Trading has become more popular as new traders seek to copy an expert trader’ positions. Rather than paying expensive management fees, copy trading allows traders to place the same trades that a copy trading expert does for a small fee. Copy trading is also beneficial for the expert traders- also called principal traders.
Copy trading Strategy for Expert Traders
Analysing the market for hours and managing the risk are critical task for copy trading expert. Good Strategy is that which minimize the risk of copy trading in an efficient way and helps traders to earn profit with good risk to reward ratio.
Here are some strategy traders should use for copy trading.
1. Understand the market conditions: Market conditions are changing every single day so same strategy will not work every time in stock market.
A range-bound trading strategy will work great in sideways market but it will get chewed up in strongly trend market.
Breakouts work great when the market is volatile, but they can give several unsuccessful trades in involatile market. There are two types of market conditions, which moves opposite to each other.
• Volatile or trending
• Stable, quiet, or range-bound
Choose your strategy and manually back test it over a variety of market conditions.
2. Manage your risk-to-reward ratio: Would you believe that a trader can have a strategy that wins 80% of the time- but still loses over long run? How is that possible? This can be happened when trader is taking more risk to make small profit.
As an expert trader, you must know your numbers-such as your average winning trade, average losing trade and your win ratio. Is your strategy suitable for long-term?
Generally speaking, trend-following strategies allow traders to earn a reward multiple times to the level of their risk. Because in stock market if you want to earn then you need to go with trend.
3. Mange your risk levels and potential drawdowns: Drawdowns are inevitable in market. Every trader will have from time to time a losing streak, but if handled properly, it should not be major hurdle for anyone. The most common mistake that new traders make is to trade aggressively while facing losses.
Copy trading free Trials
If you are looking for best copy trading signal provider which uses best strategy to copy trades to your demat account is ComBiz Services Pvt Ltd is the popular copy trading signal provider across the nation. Check it here.
Features of Combiz Services Pvt Ltd Copy Trading
• Users can copy the exact trade form the account of expert trades.
• Trades can be copied in multiple accounts.
• Your trades can get copied even when you are not available. This makes it suitable for part time traders as well.
• It works on various segments such as stocks, commodities, currency, foreign exchange etc.
Combiz Services Pvt Ltd Copy Trading Price
There are various plans available depending upon the number of account or license you are willing to operate. You can choose the plan as per your choice.
No. of License