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EP15: Forex Trade Copiers
In this episode of Truth About FX, Walter talks about the advantages and disadvantages of using trade copying services like eToro and Amaya FX. He also gives some advices about hooking up your account to another trader and having a tested technology that can hold it up for you.
http://media.blubrry.com/truth_about_fx/content.blubrry.com/truth_about_fx/TAFX_-_EP15_Forex_Trade_Copiers.mp3
Download (Duration: 05:23/ 6.17 MB)
In This Episode:
00:52 – the bad news
01:10 – technology aspect
02:53 – equity curve
04:22 – lumped in
Tweetables:
Watch out for the too good to believe equity curves. [Click To Tweet].
Anticipate that there’s going to be drawdowns. [Click To Tweet].
Make sure that you have the technology aspect that will iron it up. [Click To Tweet].
Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.
Hugh: Hey, Walter. This is a sticky question this week but this is something that comes up a lot. What are the benefits and downsides of trade copying services like eToro or Amaya FX or Zulu in trading?
Walter: There’s a couple of thoughts I have about this. The good news is, you can go through and you can sort the wheat from the chaff. You’ll know who’s good and who isn’t or, at least who’s hot and who’s not. That’s the good news.
The bad news is you still have to deal with all of the normal things that you get when you’re trading a system or you’re investing in the fund which is the drawdowns, the highs and the lows, and so forth.
The other part that I’ve noticed with some of this is there’s also that technology aspect of it. Sometimes, what it’ll do is they might lump forex traders in the same boat with commodity traders, or forex traders with stock traders.
They’re limited in how they can trade through the system. A lot of people don’t think about this but as a trader, you’re often limited in how many position you can take and your so-called leverage and things like that if your trader offering services in one that’s not just for forex traders.
That’s something to think about because that actually severely restricts with possible… in terms of leverage and number of position and things like that.
Beyond that, the other thing that you’ve got to pay attention to is the actual… how you hook this up to your account because this is like a bridge between the system and your account and sometimes that connection doesn’t always match up.
Anyone who’s listening who’s traded trading robots knows about this. You’ll often see it go down. What that means is the connection between, for example Zulu and your account, might not be as stable as you’d like.
These are the sort of things you have to be vigilant and baby-sitted as well. Then the normal things coming to the line — we’ve talked about this in an early podcast where we’re talk...
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By Walter Peters (FXJake) and Hugh Kimura (Trading Heroes)In this episode of Truth About FX, Walter talks about the advantages and disadvantages of using trade copying services like eToro and Amaya FX. He also gives some advices about hooking up your account to another trader and having a tested technology that can hold it up for you.
http://media.blubrry.com/truth_about_fx/content.blubrry.com/truth_about_fx/TAFX_-_EP15_Forex_Trade_Copiers.mp3
Download (Duration: 05:23/ 6.17 MB)
In This Episode:
00:52 – the bad news
01:10 – technology aspect
02:53 – equity curve
04:22 – lumped in
Tweetables:
Watch out for the too good to believe equity curves. [Click To Tweet].
Anticipate that there’s going to be drawdowns. [Click To Tweet].
Make sure that you have the technology aspect that will iron it up. [Click To Tweet].
Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.
Hugh: Hey, Walter. This is a sticky question this week but this is something that comes up a lot. What are the benefits and downsides of trade copying services like eToro or Amaya FX or Zulu in trading?
Walter: There’s a couple of thoughts I have about this. The good news is, you can go through and you can sort the wheat from the chaff. You’ll know who’s good and who isn’t or, at least who’s hot and who’s not. That’s the good news.
The bad news is you still have to deal with all of the normal things that you get when you’re trading a system or you’re investing in the fund which is the drawdowns, the highs and the lows, and so forth.
The other part that I’ve noticed with some of this is there’s also that technology aspect of it. Sometimes, what it’ll do is they might lump forex traders in the same boat with commodity traders, or forex traders with stock traders.
They’re limited in how they can trade through the system. A lot of people don’t think about this but as a trader, you’re often limited in how many position you can take and your so-called leverage and things like that if your trader offering services in one that’s not just for forex traders.
That’s something to think about because that actually severely restricts with possible… in terms of leverage and number of position and things like that.
Beyond that, the other thing that you’ve got to pay attention to is the actual… how you hook this up to your account because this is like a bridge between the system and your account and sometimes that connection doesn’t always match up.
Anyone who’s listening who’s traded trading robots knows about this. You’ll often see it go down. What that means is the connection between, for example Zulu and your account, might not be as stable as you’d like.
These are the sort of things you have to be vigilant and baby-sitted as well. Then the normal things coming to the line — we’ve talked about this in an early podcast where we’re talk...