Social Trading - is it profitable. I Can Trade!

The fifth month of my struggle with Social Trading is slowly coming to an end. When I launched my first system in January 2017, even in my wildest predictions, I did not expect my project to grow so much. Two things helped with this:

1. Looking at the general condition of the accounts - I'm financially ahead, I had less reluctance to invest a little more.
2. My series of articles found a sponsor - Tickmill broker - thanks to which it was easier for me to test more signal providers. Without it, I would undoubtedly not decide to run so many managed accounts at the same time.

Below I describe my thoughts after five months of investing only with the help of Social Trading.

The guarantee of success is ...

It sounds like a cliché, but the choice of strategy is crucial. Unfortunately, the opening of 10 bills and launching the 10 highest rated signals z MQL5 does not guarantee success. The truth is, a large part of the most popular strategies follow this pattern - open a position and wait for it to hit the plus. If it goes down the line, add another, etc. The last dozen or so months on the market has been calm and such an approach allowed for high returns. The problem arises when there is more movement one way - then these systems simultaneously catch a large capital slide. When building your portfolio, check when the systems you are going to copy have recorded such losses. If the dates coincide, it is reasonable to assume that the same problem will occur in the future, and despite diversification, your funds will be severely compromised.

Selection as in an elegant club

Controlling over a dozen strategies running on real accounts is very time consuming. When I started, the aim of the project was to check if it was possible to earn money on Forex market spending very little time on it. The answer is - yes, it is possible, but you need to VERY carefully select the strategies you will copy.

Social trading and rankings

All kinds of rankings are practically useless. They can change overnight and the top XNUMX system can quickly drop very far in the ranking.

The bigger and faster the profits, the ... Worse!

Do not be fooled by short-term bills (several months) and high returns. There are many strategies available that have achieved very high rates of return within two or three months (up to several hundred%). For some investors, mainly those less experienced, it can be very attractive and make them invest in this very system. Unfortunately, most often the career of such an account ends quickly. Please note that there are practically no signals that offer monthly returns of several dozen or several hundred percent with a history longer than 6 months. Why? It is simply impossible to achieve such results continuously. The moment when such an aggressive system becomes popular, appears in the rankings and gains first subscribers, it is usually the final phase of happiness of such a trader. If you connect earlier, you have a chance to quickly earn 100%, withdraw and count on a further refund. I observe such signals, the scheme is repeated very often.

An example of a "guarantee" system to fail.

Hidden costs

It is possible to achieve better results than the account manager. It often happens that people providing signals use brokers with high spreads. They do this because they expect potential players to additionally register with their reference links, which they provide in descriptions, thanks to which they will have an additional profit. It is worth betting on a proven offer of a trusted broker.

Social Trading - Is it worth it or not?

The question remains - is it possible to earn money on Social Trading? Yes, it can, but it's not as easy as it sounds. It's a constant job, just like trading. Only the performed activities change - control of managed accounts and managers' actions, allocation of funds, securing them and the constant search for noteworthy signal providers ... This is not exactly a shortcut, but rather an alternative and an idea for diversifying your investments.

Am I going to continue investing with Social Trading? Yes, of course, but in a changed form. I am going to select 3-4 strategies that have convinced me the most during this time. Thus, at the end of May, I close the cycle I Can ('t) Tradebut before that, of course, I'll show you the final results. I hope that the provided secrets will make you make far fewer mistakes than I did at the beginning of my experimental path :-). Good luck!