Especially if you approach it with the wrong frame of mind. Believe it or not, it is not as easy as it sounds and it does take some strategy. Assuming of course you have chosen a good platform.

For more information on individual platforms we suggest you check out the reviews. There are dozens of available platforms, many of them little more than gimmicks to attract traders. One platform we can recommend is Signal Hive which was voted best binary options signals provider for , and Copy trading is just like any other kind of trading; you have to spread your risk around.

Blindly copying is not the way to go. For this reason alone it is a smart idea to follow more than one trader but there is still risk in that.

This way you are diversified in two ways;. When looking for a trader to follow build a list of possibilities for each asset. If you were the coach of a football team you would want to have a first string and second string right? The same idea applies here. When this happens its time to rotate them out of your portfolio and rotate in a fresh trader.

When choosing assets try to avoid unwanted correlations. Correlations are when two assets are affected by the same catalysts. It is impossible to avoid all correlations, the market is intricately entwined, but you can avoid obvious ones.

This means you can simply assign funds to copy other traders at the exact times they open or close positions. With binary options copy trading, this process is available on software that supports the purchase of these derivative contracts.

More specifically, if a trader you copy purchases a contract, your account will purchase the same contract at the same time, with the same strike price and expiry time.

Supporting brokers generally allow you to search through a wide array of expert traders, with full histories of their options types, assets, strike prices and success rates. You may have reduced buying power and wish to stake less capital than the expert, so you can set a percentage or value limit to be used for copy trading. One of the most important factors to consider when weighing up different copy trading binary options brokers is costs.

These could be in the form of trading fees, subscription charges to access expert traders or lower percentage profits per trade.

Any fees can easily build up and quickly eat into profits. However, there can be a correlation between higher costs and greater quality. Therefore, you need to determine what you would be comfortable paying for the service. Software tools for binary options copy trading are less important than other forms of short-term speculation, such as CFD day trading. Ideally, the software should have an intuitive interface, provide you with all the required information on potential master traders and allow for easy contract purchase.

Furthermore, if you plan to do any market analysis yourself, ensure that there are suitable technical indicators and graphical objects. If you are having issues that interrupt your trading, any time lost means that you are, in effect, losing money. Look out for contact methods that you prefer to use, such as email, alongside long office hours and language options. It is difficult to understand how a particular broker operates by only reading the website or looking at the app.

You may, understandably, have questions over how trustworthy and reliable a platform may be. There are many websites, forums and binary options trading clubs online that can help with this.

See our list of the best binary options copy trading brokers with accompanying reviews. You need to evaluate the different expert traders available for copy trading. Master traders will have a direct impact on your success, so this is not a decision you should take lightly.

Believe it or not, it is not as easy as it sounds and it does take some strategy. Assuming of course you have chosen a good platform. For more information on individual platforms we suggest you check out the reviews. There are dozens of available platforms, many of them little more than gimmicks to attract traders. One platform we can recommend is Signal Hive which was voted best binary options signals provider for , and Copy trading is just like any other kind of trading; you have to spread your risk around.

Blindly copying is not the way to go. For this reason alone it is a smart idea to follow more than one trader but there is still risk in that. This way you are diversified in two ways;. When looking for a trader to follow build a list of possibilities for each asset. If you were the coach of a football team you would want to have a first string and second string right? The same idea applies here.

Binary options copy trading is easy right? All you have to do is pick a winner and make a million? Copy trading is actually potentially one of the riskiest things you can do with binary options.

Especially if you approach it with the wrong frame of mind. Believe it or not, it is not as easy as it sounds and it does take some strategy. Assuming of course you have chosen a good platform. For more information on individual platforms we suggest you check out the reviews. There are dozens of available platforms, many of them little more than gimmicks to attract traders.

One platform we can recommend is Signal Hive which was voted best binary options signals provider for , and Copy trading is just like any other kind of trading; you have to spread your risk around. Blindly copying is not the way to go. For this reason alone it is a smart idea to follow more than one trader but there is still risk in that. This way you are diversified in two ways;. When looking for a trader to follow build a list of possibilities for each asset. If you were the coach of a football team you would want to have a first string and second string right?

The same idea applies here. When this happens its time to rotate them out of your portfolio and rotate in a fresh trader. When choosing assets try to avoid unwanted correlations. Correlations are when two assets are affected by the same catalysts.

It is impossible to avoid all correlations, the market is intricately entwined, but you can avoid obvious ones. The reason is simple; it defeats the purpose of diversification. My suggestion is for a copy portfolio to look something like this;. The final tip and perhaps the most important is to manage your trades and your traders. Use the risk controls provided by the platform, they are there for a reason.

If not, even with a great platform and a good trader, you could come back to find your account wiped out. Copy trading via a robot increases risk. Automated trading means you lose complete control of your trading. There are risk management tools that can be put in place — for example limiting total losses, or the number of losses in a row. It is vital these tools are used. If the service does not offer them, look elsewhere.

Copy trading is OK. The first line of defence is picking the best platform. The next step is to actively copy trade and the above tips can help. Take control of your trading and be successful. If you learn something along the way even better.

Save my name, email, and website in this browser for the next time I comment. By continuing to use this website, you consent to the use of cookies in accordance with our Cookie Policy. Skip to content Post author: admin Post published: October 24, Post category: General Post comments: 0 Comments Binary options copy trading is easy right? Some Tips For Copy Trading Success Copy trading is actually potentially one of the riskiest things you can do with binary options.

Another alternative to binary options copy trading, is a social trading network. Risk Management When Copy Trading Copy trading is just like any other kind of trading; you have to spread your risk around. This way you are diversified in two ways; First, you are not relying on any one trader Second, you are not locked into only one asset. This way if one trader or one asset starts to lose money you still have four that are doing OK.

Selecting Assets When choosing assets try to avoid unwanted correlations. My suggestion is for a copy portfolio to look something like this; Gold Oil An Index A Stock Two non-related Currency Pairs. Trade Size The final tip and perhaps the most important is to manage your trades and your traders.

Copy Trading with Robots Copy trading via a robot increases risk. Some Final Thoughts Copy trading is OK. Goals for New Binary Traders October 24, Binary Options Tips October 24, Simple Strategies for Newbies October 24, Leave a Reply Cancel reply Comment.

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These criteria will help you select the broker suited to your needs with which to open an account:. Be sure to weigh trade volume vs. June, Next Article 4 Best Crypto Tax Software Solutions In Our team then moved on to check the range of underlying assets these platforms offered. For more information you can also read our article on choosing a binary options broker or watch this video which outlines some tips on how to open an account and deal with a binary options broker. Coupled with an excellent web interface, they have a host of other features to attract potential traders.

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