Copy Trading with FLOW TRADERS Ltd
You know that trading financial markets has the potential to be profitable. But you also know it takes a lot of skill and experience, and time spent following the markets. It’s okay! If you’re not feeling up to it yourself, we have the perfect solution.
FLOW TRADERS Ltd is an innovative way you can access the opportunities of trading without any technical skills, and the minimum of time. You simply choose to copy FLOW TRADERS Ltd traders (also known as Strategy Managers) who are right for you and make their trading strategies available to follow. We’ll do the rest!
Copy trading with FLOW TRADERS Ltd lets you retain full control of your money, and you’ll only pay a fee to your Strategy Manager when they make a profitable trade.
What is copy trading?
It’s all in the name! Copy trading allows you to directly copy the positions taken by another trader. You decide the amount you wish to invest and simply copy everything they do automatically in real-time – when that trader makes a trade, your account will make that same trade as well.
You do not need to have any input on the trades, and you get the identical returns on each trade as your chosen trader.
Copy trading is one of the easiest ways to use another trader’s expert knowledge. It also means that you don’t lose any control over the outcome. You still have the ability to close trades, and open new ones when you want.
But by copying another trader, you could potentially make money based on their skills. In fact, no advanced knowledge of the financial market is required to take part!
How does copy trading work?
Copy trading is automated trading made easy.
Choose a Strategy Manager
Select a bot trader who best matches your goals to follow, by using the tools provided by the platform FLOW TRADERS Ltd to filter the available traders. What is important to you? Perhaps it’s their profitability, risk level, the total amount of funds they manage or their return on investment. You might choose a combination of these – it’s completely up to you based on whatever you think is important.
Make a deposit.
Decide your investment amount, and how you will share it among different managers. Be balanced and don’t put all your eggs in one basket, so choose how much to allocate to each chosen trader if you have selected more than one person to copy. For further guidance, watch our short video guide
Automatically copy the Strategy
The copy trading platform will then automatically replicate all the selected trader’s positions in your trading account.
Cash in when they profit
Add more funds if you like how the trader is performing. Or, reduce your exposure to one trader and keep your portfolio diversified by not investing too much in a single trader. You can replace your existing ones at any time, just keep in mind that you’ll need a separate Invest account for each trader you decide to follow.
Share a percentage with the Strategy Manager
There are no special fees to use the copy trading function, apart from the ones you pay the Strategy Manager whenever they make a profit. Any brokerage fees that would apply to a normal trade will be applied to copy trades.
The benefits and risks of copy trading?
Benefits
The advantages of copy trading are the reason it has become so popular.
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What is the goal? To find traders that have a strong track record and trading style that you want to emulate. Or you can spread your risk across your portfolio which will enable you to ride the ups and downs in markets so that you can trade over the long-term.
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Accessibility copy trading offers an interesting and reachable route into trading. Huge advances in social trading and the multiple social trading networks means this is now freely available.
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Up-skill your own trading knowledge copy trading allows you to follow the trading activity of experienced traders, some of whom have years of expertise and know-how. You can learn from watching by replicating their success and developing your own trading.
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Diversification with the huge variety of trade strategies on offer, you can now allocate your portfolio to numerous providers across different assets. By spreading the risks associated with individual decisions, you can offset losses if one trader performs poorly. You could also potentially make money in several types of market environments.
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Ask yourself… do you want some oil exposure as Saudi Arabia becomes prone to more acts of sabotage? Do you want to take advantage of intra-day moves during Jerome Powell’s press conference? Or perhaps you are content with a quieter life, lower volatility, green investing perhaps? You can get whatever exposure you want, on your terms by tapping into a wealth of global expertise.
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Free time you can continue to trade in the markets throughout the day as someone you have chosen is monitoring them and trading. This means you can spend time on your other hobbies!
Risks
The main risk with copy trading is an obvious one – you are taking part in some risk with
financial implications. Trading by its nature is a high risk, high reward endeavour.
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Market risk copy trading, like with any trading in financial markets, involves putting some of your capital at risk. Inevitably, the market risk associated with this means you can lose that capital as the assets your chosen trader has bought and sold may be prove unsuccessful.
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Trader Histories choosing a long-term reliable trader to copy can be difficult. It is up to you to do your own homework to make sure you understand your chosen traders. Sometimes, results can be too good to be true, or a trader is going through a hot streak which means a drawdown is close by.
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Execution risk as with any financial trading, there is risk involved if the assets being traded are illiquid i.e. how easy is it to exit the positions held. You also need to be aware of other areas like what costs are included in the copy trader’s returns and is the bid/offer spread already included in published returns.