Diversify Into New Markets
For a start, copy trading isn’t limited to just forex. Algobot, for example, trades a wide variety of markets, including cryptocurrencies, commodities, and equities. Moreover, Algobot has enjoyed unparalleled success trading the DAX index. This is a major European index that tracks 40 large-cap companies from Germany.
This includes everything from SAP, Siemens, and Allianz to Mercedes-Benz Group, Airbus, and BMW. We’ll explain Algobot’s track record in more detail shortly. But as a quick takeaway – Algobot has achieved a DAX copy trading win rate of 62% since inception. Put otherwise, you’d have made almost 4,900 pips in just two months of trading. All without lifting a finger.
Algorithmic Bots Outperform Humans
Forex copy trading was historically based on human traders. So, you’d select a trader based on their experience, preferred pairs, and trading strategy. You’d pick an amount to invest, and anything thereon would be replicated like-for-like.
Although traditional copy trading can be profitable, it comes with limitations. After all, you’re copying a human trader, who can only dedicate a certain number of hours each day. Not only for entering and existing trading orders but performing research and technical analysis.
Moreover, human traders are prone to emotional biases. For example, making trading decisions based on fear or greed. Now compare this to Algobot, which leverages an algorithmic approach to copy trading. This means you’re replicating a proven bot built via artificial intelligence and machine learning.
This presents many benefits, such as being able to trade passively 24/7. You’ll completely avoid emotional trading too. And thus, vastly reduce the investment risks. Algobot is also considerably more capable than human traders, especially when analyzing pricing trends across multiple time frames.
Stay With Your Preferred Broker
Another drawback of traditional forex copy trading is that you’re often forced to use certain platforms. For example, eToro and ZuluTrade offer copy trading services via their own brokerage. These platforms are known for high fees, wide spreads, and limited customization features.
In contrast, Algobot doesn’t require users to choose from specific platforms. On the contrary, you can connect Algobot to any brokerage that supports MT4/5 and the DAX markets. This covers hundreds of trading platforms.
This includes our top partner, AvaTrade. Not only is AvaTrade regulated in nine different countries but it offers 0% commission trading. Tight spreads, fee-free payments, and 24/7 support are other benefits. These parameters are ideal when using Algobot’s copy trading tool.