I worked hard to develop a winning trading strategy, but I ended up losing money. Now thinking of giving copy trading a try but need some genuine feedback before getting started. What do you think about copy trading?
Allegedly there are a few people that are successful doing copy trading on e.g. C2 but it is really hard IMO, because you need to understand all the common BS system vendors pull, and then filter them out in your essentially black box evaluation. Because most is BS you have to go through and reject a huge number of trade leaders before you find a single legit one (that you still need to carefully monitor). I gave up since I find doing my own trading more straightforward (not to mention interesting) than worrying about whether people I copy trades from are idiots. But there's a personality fit for everything, you will notice if it's something you really like doing.
Don't do it unless you are well acquainted with the sharer and you have seen audited account statements. Ask yourself why would someone share their trades with you? They can charge you for the trade while hedging their own account.
Bad idea. When things get hectic or haywire, you won't understand what the intended strategy is supposed to do or how you are supposed to react. You would be better off giving your funds to the manager to trade on your behalf.
Most people who sell systems can't trade and if someone produces a viable system would not be dumb enough to sell it. If you not able to trade yourself, well, learn how to invest. People lose 95% of the time in trading, 4.5% make just ok money and best of the best.....
What is the reason you lose money with your own system and who says that the reason why you lose money goes away with copy trading?
You should look into bots and coding. You'd be copytrading yourself instead of some Joe Blowjob on the internet
You talking about sharing your trade signals to other traders for a fee as in offering a signal calling trade alert service (you tell them what to trade, when to buy and when to sell) or you talking about you copying/mimicking the trades of another trader ??? Regardless, you should read up on behavior finance to understand that your cognitive decision-making process will sabotage your ability to copy/mimic the trades of another trader unless the trades are called in "advance". That same cognitive decision-making process is the reason why traders can not trade successfully with real money their backtested/hypothetical winning trade strategy until it is designed as an automated trading system. Simply, there's a lot more involved when you hear another trader say if it's profitable, why not trade it yourself ? The reality, most point-n-click traders can not trade a profitable trading system because of problems with their cognitive decision-making process (behavior finance). P.S. It's the first time I saw a slang for signal calling trade alert service called copy trading. Usually, the slang is live trade rooms although copy trading is more accurate about what is occurring...one trader is copying trades signaled from another trader or one trader has his trading account linked to the accounts of other traders so that trades can be duplicated across multiple trading accounts... The latter above, brokers have a name for it that I can not remember. wrbtrader
Yes, there are profitable signal providers, but the majority like over 90% are not (any) good. So you need to look for yourself and validate. And you can learn from their trades too. Do not believe there cannot be any successful signal providers like from other posters here because there are some. They just did not spend enough effort to find them. But in your case of lack of own strategy it is good to look for those. And you also need to diversify a bit because most of them are not super consistent in their results like having some bad months in 1 full year. So that is bit more difficult to achieve. I also would avoid all providers who are not clear and transparent in their results as summaries shown. If they need to hide their performance just skip those. Second any sign of deleting loss trades or any severe unhonesty is also a sign to skip them. And finally you can skip all those providers with 3 TakeProfits or more because usually the Risk Reward is not good and they do not count partials in their profits which is also kind of fraud. So you got a manual here, just do your own search now. I do not tell you more.