Tradency Mirror Trader Review – Our View
The first thing to note is that you cannot sign up for Mirror Trader direct via the Tradency website. Just to clarify, Tradency are a pure technology provider who develop and sell trading platforms to brokers. Hence you can only sign for Mirror Trader direct via a broker. We used AvaTrade who actually also offer free demo access to the Mirror Trader platform as well when you sign up with them. As with our other social trading platform reviews, this review is also based on experience with a live account and is regularly if new features are released.
Because Tradency leaves the customer acquisition and management to the brokers, this means they don’t really offer much support to end customers (no telephone number) and there’s also not much educational info on their website. While Tradency doesn’t charge anything to you as end-customer they charge each broker a performance fee per trade or monthly technology fee per customer for using Mirror Trader. Quite a few brokers still charge you extra an commission per trade when you use Mirror Trader (though we didn’t check all of them as part of this review). Hence you’ll need to check yourself the costs when deciding on a broker. AvaTrade, the one we use doesn’t charge any extras. While there used to be a useful list of partner brokers on the Tradency website, this is unfortunately no longer available. You’ll find a slightly outdated Mirror Trader supported broker list here on our website.
Once you sign up you get access to Tradency’s Mirror Trader platform (in practice or live mode). This platform includes the usual trading and charting tools allowing you to analyse the currency pair charts using various oscillators and open up buy or sell positions manually. You can also look at the “Sentiments” for each currency pair which shows what the % of other Mirror Trader platform users are in Buy or Sell positions which is useful. In addition to these basics, Mirror Trader also gives you access to the strategies from other traders (called “strategy providers”). Via the Live Signals screen you can view all the signals real-time and copy them if you decide to (called semi-automatic mirroring). Alternatively you can select and add strategies to your portfolio which the Mirror Trader platform will automatically execute in your trading account (automatic mirroring).
While the trading and charting tools are useful, most brokers will give you a very similar offering and the real “value add” of Mirror Trader is in the strategies you can copy. There’s a choice of more than 300 strategies to choose from. While strategy providers don’t necessarily need to trade their own signal via a live account, they need to prove to Tradency that they have one and their system will be tested for 1 month and a minimum of 30 trades. If after this period their strategy meets the required performance standards, Tradency will also interview them, before their strategy goes live on Mirror Trader. Obviously we feel it would be better if the strategy providers all traded their own signals with a live account too, or at least if it was made clear somehow which ones do and which ones don’t. The evaluation process (with interview) is positive on the other hand.
You have a variety of filters you can apply to find a strategy which matches your risk profile. For each strategy you also have access to ALL their historical AND current trades, which makes Tradency totally transparent and a plus point compared to some other social trading networks which don’t provide access to all that trading data. While there’s always room for improvement, the Mirror Trader platform’s features to review, analyse and compare the historical performance are functional and sufficient for most of the research activities you want to perform. In addition, you can export all data to Excel as well if you want to do some more advanced analysis.
Our main issue with the info provided on Mirror Trader is with the calculation of the historical drawdown for the strategies. This is done on account level and closed trades only, and doesn’t take into consideration the drawdown on historical open trades. This unfortunately doesn’t make the drawdown numbers very relevant to strategies which hold on to multiple open positions with wide stops. This also therefore impacts their proprietary T-Score (otherwise a good idea) which can be used to rank the strategies as it also takes into account the drawdown figure as well.
While Tradency mentioned a while ago that they were looking at adding social interaction features to their Mirror Trader platform, at the time of this review this hasn’t happened yet. The only interaction you have with the strategy providers is one-way, in the sense that can leave a description for their strategy. While some are detailed and useful, unfortunately some are fairly non-descriptive, but overall the quality of them has improved over the past years. While there are no feedback comments or ratings of the strategies by Mirror Trader users, you can actually view how many followers with real money live accounts each system has (the $ amounts are not shared though). Hence it’s easily possible to use the social equivalent of ‘following the herd’ when selecting your portfolio of strategy provider.
Once you made a selection, you select how much to invest in each provider in terms of lots. Mirror Trader’s account management functions also let you limit the number of trades you allow open per strategy and set a monetary limit for the maximum loss you are willing to endure for the strategy. You can also view current open trades and close them from within the platform at any stage (which is very useful as it puts you in full control of your trades from within the same interface). The account and risk management settings are fairly intuitive and give you some flexibility in how to protect your account.
The question on whether you can make money with Mirror Trader obviously very much depends on the quality of the strategies offered by Tradency on their platform. Fair to say we experienced the good and the bad (i.e. it’s not because a strategy has been evaluated for a month that you should blindly trusted). However with some good risk management and some regular monitoring, you can achieve some overall gains. Because a lot of these strategies are EAs (i.e. robots) you will however have a much better change in being successful if you have some trading background and can intercept some strategies or trades on certain news events.
Tradency Mirror Trader Review Pros:
- all historical trade info and current open trades available (data is transparent)
- risk can be managed separately for each strategy copied (i.e. losses can be limited)
- full control (open trades can be closed from Mirror Trader interface at any time)
- fully functioning free demo account available (though dependent on broker) – click here for free Tradency Mirror Trader demo account (with AvaTrade)
Tradency Mirror Trader Review Cons:
- drawdown is calculated on closed trades only and doesn’t include drawdown on open positions (making the figures not very relevant for some strategies)
- no social interaction possibilities with strategy providers or other traders
- most brokers still charge extra commission per trade to customers for using Mirror Trader
- strategy providers do not need to trade their own signal from a live account
- each strategy is linked to single currency
- basic Tradency support is poor
On the next pages you find a more detailed discussion on the features offered by the platform, including screenprints.
Last updated: June 18, 2015
Please note that trading on forex social trading platform like Mirror Trader can be very risky. Never invest money you cannot afford to lose and always consult an independent financial advisor of you’re not sure whether this type of investing is right for you.