To make money on forex, you need to understand the market well and have a profitable strategy. Successful traders have valuable knowledge of how to increase money. But even those who do not have the skills of profitable trading can earn money if they transfer the capital to the trust management of a professional trader. A simple automated option is to copy forex transactions.
What is a transaction copy service?
The transaction copying service is a simplified and automated version of trust management. With its help, an experienced trader is connected to the account. When he opens a deal on his account, a similar position is opened on connected accounts. It turns out that the manager indirectly manages capital, bringing passive income to the owners of investment accounts.
Why do I need a Forex transaction copying service?
Copying forex transactions is automatic in most services. And it has a number of advantages:
Firstly, the investor’s account remains under his full control. He himself decides when to connect, what percentage of funds to allocate for such trading, how many transactions of managing traders to copy.
Secondly, even without knowledge of the market, you can create a source of passive income. In this case, it is not necessary to know that the business activity index is the most relevant indicator of economic recovery after the crisis and how it will affect the dollar exchange rate.
Transaction copying services allow you to:
- Start investing with a small start-up capital.
- Diversify risks by joining multiple accounts.
- Choose the best managers and pay them a part of the earned profit.
How copying forex trades works
Copying transactions on forex (auto trading service) was created on the basis of special programs. The connection to it is automatic, the positions of the manager open and close independently.
You can change the parameters of the copied transaction, but it is not recommended to do this. The manager’s trading strategy works as a complete system, and it does not need to be violated. It is better to set up the conditions correctly: the lot size, the list of instruments (for example, the dax index and shares of European companies) or the percentage of the trader’s lot. It is recommended to set the percentage of the account for transferring positions, and manage the rest yourself using a completely different strategy (for example, a channel Forex strategy).
How to use the transaction copying service
If you intend to earn passive income using copying forex transactions, the first task is to choose a service. Study the terms, offers, read reviews. Having decided, follow this algorithm:
- Study the statistics of accounts, strategies, managers.
- Pay attention to the yield curve. The flatter it is, the safer the trading strategy is.
- Choose an account not only by the size of the yield, but also take into account the percentage of maximum drawdown.
- Connect to the selected account by following the instructions.
- Set the parameters for transferring positions: lot size, maximum allowable landing amount, etc.
- Track the dynamics of trading. Conclusions should be made at the end of the month.