What’s the difference between Copy Trading Signals and Mirror Trading Signals?

For all of the discussion surrounding Copy Trading Signals and Mirror Trading Signals, the differences between the two should be explored.  That’s what this article is about, helping investors understand these key differences so that they can make better informed decisions.  Isn’t that what this is all about?  Making better informed decisions so that the odds of profitability shift significantly in our favor.  So let’s explore the differences between these two different types of services and the one other service that all investors should avoid.

Copy Trading Signals

These are Signals that enable traders to Copy the trades of another trader or institution on a proportional basis.  The proportions can be altered by the trader, but by default the proportions as far as deposit load is concerned are the same proportions used by provider.

This can be executed within a social trading framework or in a general marketplace.  Details about each copy trading signals provider may vary depending upon the source of the signal.  However, a full trading history, monthly returns, maximum drawdown, relative drawdown, deposit loads, frequency of trades, average length of trades, average gain and loss per trade and other pertinent metrics should be available.

The trades placed from copy trading signals are live, no extra execution work needs to be done once subscribed.

Mirror Trading Signals

These trading signals are a bit different from Copy Trading Signals as they are more specific to a strategy rather than particular trader or institutional provider.  It is much like giving control to an Expert Advisor that an investor did not create or download.  Think of them as cloud-based Expert Advisors that automatically place trades like an Expert Advisor would.

Both copy trading signals and mirror trading signals can be a part of a portfolio for an investor.  Even a properly tested expert advisor can be a part of a portfolio.  Diversification helps reduce risk, even to the extent that the portfolio beta is zeroed out altogether.  Zero beta conditions are usually not long-lived, but it can be adjusted to ensure a beta that is zero or close to zero.

Avoid:  Manual Signals

These are signals typically touted by less reputable and scammy operations that often reside on Telegram and spam social media.  The promises made are unrealistic and the entries/exits are unverified.  To make matters worse, the traders themselves must place the trades manually, which means that if these “wonderful” signals are transmitted, then the trader must put in the parameters themselves right when the signal is fresh.  This means traders miss out on a lot of signals and there’s no guidance as to deposit loads.

The inconvenience, lack of verification and highly likely fraudulent nature of these signals make them a MUST AVOID.  These ancillary participants in the industry are a pox that have to be eliminated.  These participants do a great deal of harm to the largest market in the world.

Stick with the verified, real-time trading signal providers and you should be off to a better start than many.

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