MetaTrader-4 Copy Trading

 MT4 Automated Trading

 

The brand-new copy-trade technology gives everyone the opportunity to easily copy the trade positions of experienced traders.

There are many different methods to perform automated trading, and that includes:

1. Automated Trading via the use of Expert Advisors (Forex Robots) | » Learn more on EAs

2. Copy-Trade Signals via Social / Mirror Trading Platforms | » The Dukascopy Social Network

3. Trade on a PAMM Account (Trade via a PAMM Manager) | » Compare PAMM Accounts

The MT4 trading platform incorporates a fully-featured framework for performing automated trading. MT4 supports all popular copy trading methods (EAs, Social Trading, PAMM Accounts).

In this guide, we are going to show how to use the MT4 copy-trade system (2nd method).

 

Metatrader-4 Signals

Metatrader-4 allows traders to automatically follow, or copy, the trade positions of others (signal providers). Note that every MT4 user can be a signal provider too, and make money if others choose to follow him. You can find information about how to become a signal provider at the end.

Some signal providers may use Expert Advisors in their live accounts. When you are about to select signal providers, you have the ability to check if these providers are using Expert Advisors, or if they are trading manually.

In order to copy and trade signals via MT4, you need:

(1) An active MT4 trading account provided by an MT4 broker (easy and free to sign up)

(2) MQL community registration (easy and free to sign up, the information below)

(3) Some funds to trade (minimum 200-300 USD)

 

Copy Metatrader-4 Signals in six (6) Steps

The MT4 trade signals can be easily followed as they are incorporated into any MetaTrader account and can be found at the “SIGNALS” tab, as you can see in the image.

These are the six (6) steps to be able to use MT4 signals:

(1) Register for free in the MQL5 Community (you can register via the MT4 platform, just click on the 'Signals Tab' and click 'Register an MQL Account' on the right).

(2) Then go to your MT4 trading platform, go to 'Tools' from the main menu, go to “Options” and select the 'Community' tab to log-in to the MQL community.

(3) Now you can go to the 'Signals” tab which is found at the bottom of the MT4.

(4) You can select your signal providers either by double left-clicking directly the signal or by clicking on the right in the list and choosing 'Details' and then clicking 'Subscribe'.

(5) Agree to the terms of service, and insert your MQL5 password

(6) Enter the percentage of your capital that you will risk, and set up an amount for stop-loss. This stop-loss amount will protect your account and stop any trading action if the balance of your account reaches a certain minimum level.

That is all, the signals are now activated and run on your MT4 account.

Paid MT4 Signals (Payment Methods)

There are free and paid MT4 signals, usually, the commercial services are more reliable in the long run.

Any subscription fee can be paid directly on your MQL5 account, or via using other payment systems. MetaTrader-4 supports various payment methods:

• Cards (Visa, MasterCard, and UnionPay cards)

• eWallets (PayPal, Skrill, WebMoney, Netteler, and ePayments)

 

Eight (8) Tips When Choosing MetaTrader-4 Signal Providers

Not all signal providers are good for trading. These are a few tips in order to choose the right providers:

(1) Any chosen signal provider must trade on a Real Account and not on a Demo Account. That means risking its own money and therefore having the incentive to limit its overall portfolio risk.

(2) Choose among signal providers that have opened a minimum of 50-70 positions (better more than 100-150 positions).

(3) A good signal provider must have a smooth performance as it can be visualized via the 'Equity Curve'. Avoid signal providers with high upside-downs in their performance.

(4) Check the average dollar winnings versus the average losing dollars.

(5) Check the best trade and the worst trade. If a provider has lost $4,000 on his worst trade and he has earned $2,000 on his best trade, he probably applies martingale techniques which are very risky and not good for long-term trading. A good provider will earn much more on his best trade than lose on his worst trade. Seek for providers that are applying Profit/Loss Ratio 3:1, or better.

(6) As a general rule, paid signals will prove more reliable and more profitable than free signals over the long run.

(7) If you are about to trade a lot of money then research the provider's profile and make sure you are trading the signals of a professional trader.

(8) Last but not least is the golden rule of investing, the "Diversification Rule". Don't put all your eggs in a single basket. In our case that can be translated as 'choose more than one signal provider'.

 

 

MetaTrader-4 Filters When Copying Trading Signals

These are some filters you can apply when copying MT4 signals:

(1) General Account Risk Management

As it was mentioned before, when a trader subscribes to a signal, he has the ability to set the amount of capital he will risk to that particular trading signal.

(2) Dollar-Amount Stop-Loss

Copy traders can set a certain dollar-amount stop-loss. If that level is reached the trade is closed.

(3) Set Conditions to Exit Trade Positions

Copy traders can also create rules for stopping the trades of a particular provider. For example, a trader can set a conditional rule that will limit the exposure of his account if a trade position has grown over a certain percent. That means creating an exit strategy that works as a trailing stop.

Other Parameters when Copying MT4 Signals Include:

• Enable / Disable Real-time Trade Signal Subscription

• Synchronize Trade Positions Without Confirmation

• Slippage Deviation in Spread (You can set the maximum slippage deviation in pips)

Monitoring the MT4 Trade Signals

MT4 copy-traders can have access to detailed information regarding their signal subscriptions. This information is found under the 'My Statistics' tab and include

(1) Growth graph

(2) Time (in Weeks)

(3) Max DD (maximum drawdown in percentage)

(4) PF (Profit Factor, expressed as gross profit to gross loss)

 

 

Becoming an MT4 Signal Provider

Any trader can become an MT4 signal provider.

MT4 signal providers can make good money, as MetaQuotes charges only 20% of the overall fee. That means that a subscription fee is paid:

• 80% to the signal provider, and

• 20% to the MT4 Owner (MetaQuotes)

Six (6) Steps to Become an MT4 Signal Provider

These are some basic steps in order to become an MT4 provider:

(1) Create an MQL ID

(2) Register as a provider from the MT4 'Signals' tab

(3) Describe your trading strategy

(4) Register as an MQL seller, you can do that in the 'Profile' tab which is found in the MQL5 Community

(5) Open five (5) trade positions in the first month. These positions must show less than 70% drawdown

(6) Enter a certain monthly fee that you will charge to copy-traders (from 20 USD to thousands of US dollars)

Promoting your Signaling Service in the MQL Community

You can promote your signaling service via the MQL5 community and use other members as advertisers of your signals. When an MQL member shares your signaling service, he can earn an easy fee for any new subscribers joining your program. The whole process works via the classic affiliate links.

• Let others promote your signaling service via affiliate links

• Offer up to 50% to any MQL community member

• Set your Affiliate Fee under the tab 'Signals' and then 'My signals' of the MQL5 community

 

FOREX BROKERS OFFERING METATRADER-4

MT4 is supported by most Forex Brokers in the world.  

More: » ECN / STP Forex Brokers | » Compare Forex PAMM Accounts

 

OTHER PLATFORMS: » Dukascopy JForex | » cTrader | » NinjaTrader

REVIEW BROKERS: » LQDFX STP | » IC Markets ECN | » Dukascopy ECN

 

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