Trading Education: How to Use Copy Trader the Right Way with The Funded Trader
Managing multiple accounts? A copy trader is a tool that can help you automate your trades for seamless management. For busy traders, it can potentially revolutionize your Forex trading experience and profits.
The Funded Trader (TFT) allows the use of trade copiers. However, it’s crucial to have a clear understanding of the guidelines and restrictions surrounding it. Let’s explore the concept of copy trading and how to use it wisely with The Funded Trader.
What Is Copy Trading in Forex?
Copy trading is a practice where individuals replicate the trades from one account to another in real-time. With this tool, you can set your multiple accounts to automatically start mirroring your trading decisions. This includes opening, closing, and managing positions.
Please note: Don’t confuse copy trading with social trading. In social trading, you connect your account to a platform that has “Master Traders.” Their trades are automatically executed on your account. This strategy is used by beginners who may not have sufficient market knowledge or the time to commit. Basically, in social trading, you replicate the strategies, trades, and risk management techniques that have worked for this Master Trader.
The Funded Trader DOES NOT allow social trading. This means you cannot copy someone else’s account. We consider that account management and goes against our policies.
Again, with TFT’s copy trader, you’re copying your personal trading strategies across multiple accounts that you own. This makes it easier for you to manage several accounts at once. You’re not copying someone else’s trading strategy.
How To Use TFT’s Copy Trader
To ensure a successful trading experience with our firm, we strongly encourage you to familiarize yourself with our trade copier rules.
- Your TFT account should be the “Master.” This means it should be the primary source of trades. You an use your TFT account to copy trades to your personal accounts or other proprietary firm trading accounts. We also allow the TFT account to be used as a “slave” for Royal, Knights, and Standard accounts with the expert advisor (EA) add-on.
- To use copy trader, make sure your account has the necessary EAs enabled.
- All the linked accounts should be in your name. Do not add another user’s account to your copy trader. This will be considered as a violation or a breach and may result in suspension of your account.
TFT Copy Trader Do’s and Don’ts:
Lean on these quick tips to use the copy trader correctly and effectively:
- Traders are allowed to copy to and between Royal accounts, Knight accounts, or Standard+EA accounts. Read our guidelines on how to use the copy trader between different accounts.
- All trades must be placed by the owner of the TFT account.
- Make sure that all linked accounts are in your name.
- Don’t copy trades from your personal accounts to a non-EA-enabled TFT Standard or Rapid account. This video explains different scenarios for which accounts you can and can’t copy.
- We don’t allow copying someone else’s EA trading signals. Your ideas and execution must be unique to your trading account.
- Similarly, we don’t allow raising identical orders to other traders with the same time intervals, order sizes, and instruments.
How To Spot and Avoid Copy Trader Scams
Forex trading is a lucrative industry. Unfortunately, it’s also prone to scams. A Forex trading scam can range from fake trading bots and expert advisors to people selling “holy grail” copy trader strategies. New and inexperienced traders are more likely to fall for such scams. Common examples include:
Challenge Passing Scam
Be cautious of anyone who claims they can help you clear your challenge. They’ll offer to take the challenge on your behalf or copy their trades using a bot. These scammers ride on luck with a strategy of over-leveraging, taking multiple trades, and hoping a few will bring profit. If you visit their websites, you’ll notice they claim exaggeratedly high pass rates.
Using a challenge passing service is strictly prohibited by all Forex trading firms. It may get your account suspended. Also remember, if the service loses the challenge, they have nothing to lose. You, however, stand to lose challenge fees as well as the service fees you paid to them.
Fake or Misleading Copy Trading Services
If a scammer is promising you unrealistic profits in a short period of time, then it’s probably too good to be true. They may claim that you can make substantial gains by simply copying their trades. This is a red flag.
Scammers may hide the identities of Master Traders and their track records. They often employ high-pressure tactics to make you invest quickly without giving you adequate time to research or think about the decision.
Why You Should Never Copy Other Traders
Copying someone else’s trades is never a good strategy. In fact, doing so would be a disservice to your Forex trading journey. Even if you’re a beginner, there are several reasons to avoid copying other traders:
- Copy trader platforms list Master Traders and the amount of profit they generated. However, this doesn’t give you a complete picture. Their unrealistic performances are based on non-existent or poorly constructed risk management strategies. They may help you win some trades, but in the long run, you’re more likely to lose.
- Masters use bigger leverage to generate a quick profit and attract more followers. This is very risky, especially for new traders.
- Using copy trading services as a tool to observe and learn someone else’s strategy is also a misstep—you can’t copy their psychology. Successful traders know their behavior and mindset impact every trading decision. Simply put, you can’t expect the same level of long-term success with someone else’s strategy.
So, what can new traders do to practice Forex trading? We advise all traders to invest time in learning the fundamentals. Then, practice, test, and polish your strategy.
Never use a copy trader service as a substitute for your strategy. Instead, conduct your own market analysis and place your own traders. The more you trade, the better you’ll become.
Use TFT’s Copy Trader Wisely
If you want to make money in Forex trading, you will need to work hard and focus on risk management. Make sure to stay updated with all the rules in order to avoid losing your account due to violations.
Use a copy trader on The Funded Trader to link your additional accounts only. You must be the owner of all these accounts to ensure you comply with our rules. When using this tool wisely, you’ll be able to execute trades on different Challenges simultaneously and increase your chances of making bigger profits on your funded accounts.
Sign up for our trading Challenge and start building your empire today.