Forex Signals Deadly Sin 5: Relying On Trade Copiers
So far in the Forex Signals Success Course there is a common thread connecting all the Deadly Sins. Basically, if you need to be around 24 hours a day to place trades and manage trades, it will be impossible to trade the signals correctly. If there is no set trading time, you need to spend a lot of time trading or you are getting email or text messages any time day or night because you are focusing on Intraday Forex signals… getting similar results as the service you are following by manually trading will be impossible.
And the Forex signals services providing signals like these are aware of this fact. This is why they rely on technology to fix this problem. And the technology they employ is called Trade Copiers.
A Trade Copier is a way to connect your trading platform to a “Master” trading platform where the signal provider places and manages trades. When the signal provider takes action on their trading platform, the same action is taken on the subscribers platform. So, basically, this is a way to copy the signals without any time commitment or effort on the part of the signals subscriber.
In theory, getting your signals by Trade Copier fixes a lot of problems we have previously discussed.
- You don’t need a set trading time because no matter when the signals come out, they will be copied to your platform.
- Once you set up the trade copier, you don’t spend ANY time trading.
- Intraday signals can be traded because the signal provider takes action, and that action is automatically copied to the subscribers platform.
- There is no need to for Email or Text Messages because everything is done automatically.
This SOUNDS like the very best option for a signals subscriber. But in practice, there are various problems. And these problems lead to getting very different results than the signals service you are following.
Trade Copiers Problem 1: Keeping Your Platform Connected
In order to get the Forex signals through a Trade Copier, you need to have your trading platform open and connected to the Internet. Since you don’t know when the trade signals are coming, this means keeping your platform open and connected 24 hours a day.
One solution to this problem is to use a Virtual Private Server (VPS). A VPS allows you to have your trading platform open and connected to the Internet 24 hours a day, without having to keep your computer running. You can also access the VPS from different computers, which makes it easier to access your trading platform from anywhere.
Trade Copiers Problem 2: Missed Trades
Even if you keep your platform open and connected to the Internet 24 hours a day, there still is the possibility of missing trades or trade management activities. The signals may be sent by the Master account, but any number of things can happen to keep the signal from reaching your account. And it only takes one missed trade, or missed trade management activity, to dramatically differ your results from the service you are following.
Trade Copiers Problem 3: Slippage
Even if you keep your platform open and connected to the Internet AND manage to get every signal sent out, you still need to worry about slippage. Slippage is the small price differences between the Master signal account and the signal follower account. Due to slippage, you will not get exactly the same results as the Master account.
OK, that does not sound that bad. But the real problem is when you are using a Trade Copier to copy Intraday type trades that are only going after a small number of pips. The small differences due to slippage can mean big differences in profitability. And it can even mean some trades will be profitable for the Master signals account and not profitable for the signals follower.
In my personal experience, I have tested various trade copiers. And there are some decent ones out there. But I have never personally used one that copied the trades perfectly. There were always problems of missed trades, missed trade management or slippage.
Not only does this mean I was unable to get the same results as the Master account, but it is very frustrating. Imagine watching the signals service report positive results, and you not get those same results. Eventually, this frustration leads to not wanting to follow the signals service at all.
The Solution: Manual Trade End Of Day, Set And Forget Forex Signals
The truth is, Trade Copiers sound great, but are just not reliable enough. When you are trading real money under live market conditions, you do not what to leave the trading up to chance. So this means not putting your trading in the hands of Trade Copier technology that does not work perfectly.
A better option is to manually place end of day, set and forget style signals. The trades and trade management can be completed in less than 10 minutes a trading day. And the rewards greatly outweigh the small time commitment and effort you need to put in to trade the signals perfectly.
So, don’t commit the Deadly Sin of relying on Trade Copiers.
If you can manually place trades once a day, you can trade our signals!