Copy trading has become an extremely popular way for novice traders to tap into the skills and knowledge of more experienced investors. MyFXBook Autotrade allows traders to automatically copy the trades of strategy providers directly into their own accounts. But does copy trading on MyFXBook actually work?
In this comprehensive review, we’ll take an in-depth look at MyFXBook Autotrade to see if copying other traders can be profitable.
Overview of Copy Trading on MyFXBook
MyFXBook is a popular free service for forex traders to track, analyze, and share their trading results. The AutoTrade feature takes social trading on MyFXBook to another level by allowing you to automatically copy specific traders or systems directly through your brokerage account.
Here’s a quick rundown of how copy trading works on MyFXBook:
- Strategy Providers share their trading strategies and track performance on MyFXBook. Other users can view audited trading history and statistics.
- Followers browse strategies and choose providers to copy based on performance, risk metrics, trading style etc.
- AutoTrade feature automatically duplicates providers’ trades into your brokerage account.
- Ongoing trade mirroring continues as long as you stay connected to the provider. You can stop copying at any time.
- MyFXBook acts as an intermediary and does not have access to your trading account funds. Connections are made through API integrations with supported forex brokers.
So in essence, MyFXBook allows you to harness the trading signals and strategies of more skilled investors in an automated way. But is this an effective approach? Let’s analyze actual AutoTrade performance…
Assessing the Performance of MyFXBook AutoTrade
When evaluating the viability of copy trading on MyFXBook, we need to look at the actual profitability of AutoTrade strategy providers. The service currently has over 24,000 strategy providers, but many have no trading history or unverified results.
For this review, we will focus on established providers with long-term verified performance to gauge the realistic earnings potential. Key metrics to consider:
- Total percentage gain – The overall return on investment over time
- Consecutive years profit – Steady gains demonstrate consistency
- Max drawdown – The worst peak to valley performance drop
- Risk score – MyFXBook’s 1-10 rating (lower is more risky)
- Gain to drawdown ratio – Higher ratios are better
Below are the stats on 5 of the top providers with verified long-term gains on MyFXBook AutoTrade:
|Provider||Gain||Years Profit||Max Drawdown||Risk Score||Gain/Drawdown|
These results demonstrate that it is certainly possible to generate significant long-term gains from MyFXBook copy trading. Some key findings:
- The top providers have produced triple digit returns of 280% to nearly 2000%.
- Most have sustained consistent yearly profits over multiple consecutive years.
- The max drawdown risk is generally less than 30%. Drawdowns are temporary dips.
- Gain/drawdown ratios range from 1.3 to 11.2. Higher is more favorable.
- MyFXBook risk scores indicate most profitable providers trade conservatively.
So in summary, the stats clearly validate that skilled traders on MyFXBook AutoTrade are generating excellent returns. Let’s take a deeper look at how they’re doing it.
How Do Successful MyFXBook AutoTrade Providers Earn Steady Profits?
The consistent profits from top MyFXBook copy traders year after year did not happen by chance. Savvy strategy providers on AutoTrade use various tactics to stack the odds in their favor.
Successful MyFXBook traders do not rely on just one or two currency pairs or assets. Trading a diverse mix of uncorrelated markets minimizes exposure and takes advantage of trends across different instruments.
For example, TrendsGrid trades over 15 currency crosses plus gold and oil with a strategic multi-asset portfolio approach. This diversity provides multiple profit opportunities while reducing market-specific risk.
Disciplined Risk Management
Managing risk is crucial to sustain long term gains. The best providers limit position size and use smart stops to limit the damage when trades move against them. This preserves trading capital allowing profits to compound over time.
EarnForex exemplifies solid risk practices with a max historical drawdown of only -17% over 10+ years, an impressive feat. Strict risk rules are easier to implement automatically through copy trading.
Mechanical Trading Strategies
Emotion is the enemy of most traders. Top MyFXBook traders avoid discretionary decisions by using mechanized systems with rules-based entries and exits. Machines stick to plans much better than humans.
A great example is KingForex – gaining nearly +1000% over 5 years using algorithmic strategies removing the influence of emotions. Automatic copy trading is ideal for mechanical systems.
Balancing Risk vs Reward
In addition to risk control, profitable traders also optimize their reward potential on winning trades. This may involve leverage, targeting bigger moves, pyramiding winners, etc. calculated using backtesting.
FXStatTrade has crafted his strategies to capture large moves resulting in a gain exceeding +300% over 4 years. Copy trading helps apply proven money management tactics.
Focus and Consistency
It takes immense focus and discipline to stick to effective processes over many years. The statistics above prove the longer traders stay profitable using a working approach, the greater their edge becomes.
By letting algorithms do the heavy lifting, AutoTrade providers can focus energy solely on optimization rather than execution. This builds consistency.
So in summary, leading MyFXBook copy traders generate reliable income by prudently balancing risk management with profit optimization – something very difficult for most retail traders. AutoTrade technology allows them to adhere to proven strategies. Now let’s look at the actual trading experience…
Step-by-Step Walkthrough of Copy Trading on MyFXBook
While the returns of top providers look enticing, how exactly does AutoTrade work in real trading? Let’s walk through the full process step-by-step.
1. Browse and Select a Provider
Login to MyFXBook and visit the AutoTrade section. Here you can screen and sort all connected strategy providers by gain percentage, drawdown, risk score, followers and more.
Analyze performance statistics in depth before selecting a trader that matches your objectives. Seek those with long term verified gains using reasonable risk.
For example, you may decide to copy FXStatTrade, who has earned +330% over 4 consecutive profitable years.
2. Connect Your Broker Account
In order to mirror trades automatically, your brokerage account needs to connect directly to MyFXBook. Click “Connect Broker” and follow the steps to link your platform account via API.
Over 60 major brokers are supported including popular platforms like MT4, MT5 and cTrader.
If your broker is not supported, you may need to open a new account that integrates with MyFXBook in order to use AutoTrade.
3. Activate the AutoTrade Service
Once your trading account is connected, you can enable AutoTrade. This may require authorizing your broker to release account details to MyFXBook depending on their integration setup.
Start by allocating the amount of your balance you wish to mirror; many traders start with as little as $500 to test. This capital will automatically follow the provider’s proportionate trades.
For example if you allocate $2000 and the provider risks 2% per trade, your position size will be $40 (2% of $2000).
4. Mirroring Begins
That’s it! Once your account is synced, all new trades from your chosen strategy provider will be instantly duplicated into your brokerage account automatically.
You can sit back and relax watching your mirror trader generate (hopefully) consistent profits for you. It’s really that simple to copy trade!
You can check the trading tab within MyFXBook to monitor all copy activity. You’ll see their entries and exits automatically reflected in your account.
5. Track Results and Disconnect Anytime
One of the best parts of MyFXBook is the ability to track detailed copy trading stats. You can analyze your mirrored gains compared to the provider’s performance.
If you are not happy with your copy trading results, you can stop the AutoTrade connection at any time. Just unlink your brokerage account to cease further mirroring.
Overall the process is very straightforward and flexible. Now let’s examine the pros and cons of this approach to social trading.
Pros and Cons of Copy Trading on MyFXBook
Below we have summarized the major advantages and potential disadvantages of the MyFXBook AutoTrade service based on our research:
Pros of MyFXBook Copy Trading
- Requires no specialized knowledge – Perfect for beginners
- Hands-free “set and forget” passive income potential
- Trade confidently with established profitable traders
- Avoid costly mistakes by mirroring experts
- Convenience of automated order copying 24/7
- Detailed performance tracking and transparency
- Start with minimum account balance ($500+)
- Scale strategy position sizes proportionately
- Flexibility to stop copying anytime
Cons to Consider
- Small monthly subscription fee per provider (up to $50)
- Potential lag in order execution speed
- Risk of account wipeout if provider blows up
- Lack of customization or intervention
- Forfeit trading education learning process
- Provider may deviate from past performance
- Forced to mirror mistakes or losing periods
- No guarantee provider will stay consistent
The most serious downside is that you fully depend on your strategy provider’s results. A single catastrophic loss on their end can wipe out your account as well, since all trades are blindly mirrored.
Therefore, proper due diligence in selecting the right trader to copy based on verified long-term performance and risk metrics is paramount. Patience and trust are required during inevitable drawdowns.
Now let’s look at who can benefit most from MyFXBook’s AutoTrade functionality.
Who is MyFXBook Copy Trading Best Suited For?
Social trading on MyFXBook can be a good fit for certain investors, if used prudently with eyes wide open. AutoTrade may appeal if:
- You are new to trading and want an easy introduction while avoiding novice mistakes.
- You have limited time and want a hands-off approach to generating additional income.
- You have tried trading but struggled with developing your own profitable strategy.
- You want to diversity your investment portfolio into forex which is uncorrelated to stocks.
- You seek passive income from financial markets without active participation.
- You have a small account balance suited for proportional copying.
- You trust proven statistics and are comfortable with mirror trade execution.
However, copy trading is certainly not ideal for everyone. You may want to trade independently if you:
- Do not want to trust strangers with your capital
- Prefer developing your own customized trading systems
- Require control over every aspect of trade entries and exits
- Are looking to actively trade yourself as a learning opportunity
- Want to avoid monthly subscription fees to third-party services
- Possess substantial capital you wish to manage yourself
So although social trading on MyFXBook can be highly effective under the right conditions, it does require an open mindset and objective due diligence. It is just one approach among many. Now let’s recap the key points:
Conclusion – MyFXBook AutoTrade Offers Hands-Free Income Potential
In closing, here is an overview of the main findings from our in-depth review:
- MyFXBook AutoTrade allows effortless copying of forex traders with consistently profitable long term track records.
- Performance statistics validate top providers earn excellent returns through disciplined strategies.
- Automated mirroring executes entries and exits instantly without intervention.
- The process is straightforward with full control and transparency for followers.
- Pros include simplicity, passive income potential, avoiding novice mistakes.
- Cons entail risk of wipeouts, lack of learning, reliance on others performing.
- Thorough due diligence on right provider match is crucial before activating service.
Overall, copy trading on MyFXBook can be an effective hands-off solution for generating additional income from forex markets for those unwilling or unable to trade themselves. However, blindly mimicking other’s strategies without proper vetting has considerable risks.
Used judiciously under the right circumstances, MyFXBook AutoTrade allows anyone the possibility to harness the skills of top traders worldwide. Just approach with open eyes, start small to test, and let the numbers be your guide. Over the long-term, statistics don’t lie.
Best and Most Trusted Forex Brokers
Based on regulation, award recognition, mainstream credibility, and overwhelmingly positive client feedback, these six brokers stand out for their sterling reputations:
|No||Broker||Regulation||Min. Deposit||Platforms||Account Types||Offer||Open New Account|
|1.||RoboForex||FSC Belize||$10||MT4, MT5, RTrader||Standard, Cent, Zero Spread||Welcome Bonus $30||Open RoboForex Account|
|2.||AvaTrade||ASIC, FSCA||$100||MT4, MT5||Standard, Cent, Zero Spread||Top Forex Broker||Open AvaTrade Account|
|3.||Exness||FCA, CySEC||$1||MT4, MT5||Standard, Cent, Zero Spread||Free VPS||Open Exness Account|
|4.||XM||ASIC, CySEC, FCA||$5||MT4, MT5||Standard, Micro, Zero Spread||20% Deposit Bonus||Open XM Account|
|5.||ICMarkets||Seychelles FSA||$200||MT4, MT5, CTrader||Standard, Zero Spread||Best Paypal Broker||Open ICMarkets Account|
|6.||XBTFX||ASIC, CySEC, FCA||$10||MT4, MT5||Standard, Zero Spread||Best USA Broker||Open XBTFX Account|
|7.||Vantage||ASIC, CySEC, FCA||$50||MT4, MT5||Standard, Cent, Zero Spread||20% Deposit Bonus||Open Vantage Account|
|8.||FXTM||FSC Mauritius||$10||MT4, MT5||Standard, Micro, Zero Spread||Welcome Bonus $50||Open FXTM Account|
|9.||FBS||ASIC, CySEC, FCA||$5||MT4, MT5||Standard, Cent, Zero Spread||100% Deposit Bonus||Open FBS Account|
|10.||Binance||DASP||$10||Binance Platforms||N/A||Best Crypto Broker||Open Binance Account|
|11.||TradingView||Unregulated||Free||TradingView||N/A||Best Trading Platform||Open TradingView Account|
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