TRADERS WORKSHOP
many investors are using mirror trading for portfolio balancing or diversifi cation. For example strategy developers or money managers can use the strategies available in the platform to diversify their own strategy. If, for example, they developed a successful scalping strategy, they can use mirror trading to get signals from the medium-term or long-term strategies.
T ey can use Tradency signals to complement their own style of trading, as well as for pure asset diversifi cation by allocating funds to Mirror Trading.” Another important aspect of mirror trading is the ability to be able to react to changing market conditions – something that can be diffi cult to do quickly with automated strategies without the programming skills needed to rewrite the code inside the black box. With Mirror Trading, traders can easily modify the strategy to suit the market conditions, or switch to a diff erent strategy.
Keys to successful use
T ere are two principles to using mirror trading successfully: Naturally, the fi rst one would be choosing the strategies. Luckily the platform provides many tools to assess and analyse the strategies’ performance. We strongly recommend investing the time to assess the data provided in the platform. After all, once you have selected the strategies, the rest of the trading process is done automatically by the platform. When
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adding a strategy to the portfolio it is important to pay attention to the money management (trade size) you set for the strategy.
T e second key factor to successful mirror trading is creating an eff ective and balanced trading portfolio. A portfolio is an appropriate mix of trading strategies that has the goal to maximize returns while keeping risk at an acceptable level. When you create a portfolio, you have to become a coach of your own team. Picking the best strategies is necessary to get a good portfolio performance, but it is not enough. Just like a coach of a team, it is your job to make the strategies work together and to let the portfolio become more than the sum of its parts.
Future evolution
Tradency is about to launch 2 new signifi cant additions to the trading platform. T e fi rst addition is a new approach to mirror trading that will be implemented in the existing platform. T is concept is called “Semi Automatic Mirroring” – the Semi Automatic Mirroring method takes the control from the hands of the strategies and puts it in the hands of the trader.
Semi Automatic Mirroring is based on the traditional idea of mirror trading, where the trader uses the expertise of experienced strategy providers for his trading, but instead of automatically executing the strategies’ trades,
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