Tradency Mirror Trader Review: Account & Risk Management
When you select a strategy on Tradency which you would like to mirror and copy in your account, you can set a number of parameters which allow you to control your risk and how much you invest (see image below). These are:
- Amount: this is the Trade Size in terms of lots you’d like to invest each time the strategy opens 1 position (i.e. per signal)
- Add all symbols for that strategy: by default you normally only invest in the strategy/currency pair combination you select from the strategy selection screen, though you could select this to execute the strategy on all pairs
- Max Positions: the maximum number of positions you allow to open per symbol for this strategy
- Pause Strategy: the loss amount in monetary terms (e.g. $) at which Mirror Trader will pause the strategy in your account and open no further trades, while closing any existing open ones of this strategy
- Stop: the maximum stop level you set for a single trade of this strategy
(Please note that Tradency automatically applies a 300 pip stop loss level to each trade opened by a strategy unless the strategy or you apply a smaller number. This is introduced to protect your account from a worst-case-scenario, though with potentially multiple positions open your total loss may be of course higher than 300.)
- Limit: the maximum limit level you set for a single trade of this strategy
From our experience, these parameters give enough control to allow most investors to manage the risk for the strategies they copy in the way the want.
Once you set the parameters the strategy is added to your portfolio view. At any stage you can change these risk settings from the portfolio view or delete a strategy.
Your portfolio (see image) also shows you total account balance and exposure, which is your account leverage in case all strategies open their maximum number of positions at the same time. A visual representation of your account exposure is also provided as a risk gauge from green to red.
You can monitor any trades which have been opened in your account by your selected strategy in the LIVE Chart screen (see image). At any stage you can manually close these positions or alter stop/limit levels. The History tab will display all historical trades in your account with profit and loss information.
In addition to the auto mirroring (i.e. full auto trading), Tradency’s platform also allows you to manually select the signals you want to follow (semi-automatic mirroring). You can do this from the “Live Signals” screen. This display all live signals sent from all strategy providers in Mirror Trader. With each signal you can also view information on the past 30 days performance and the number of other people mirroring the signal. You then have 30 seconds to mirror the signal (obviously the longer you wait the more chance your price will be different). Once a trade is “semi-mirrored” you can again follow it in the Live Charts screen together with your other open positions in Tradency Mirror Trader. The position will be closed when the strategy provider closes it unless you decide to close it yourself.
While “semi-automatic mirroring” is certainly an interesting additional offering by Tradency, we’re not fully convinced it’ll have a mass appeal. It requires the user to make a quick trading decision themselves (mirror or not) which is kind-off the same as trading themselves. However when the user semi-automatic mirrors the trade, the trade is managed by the strategy provider instead of themselves. Hence even though they made the decision to get into the trade, they hand over the decision to get out. We struggle with the appeal of this concept and feel most investors on social trading networks or auto trading platforms are more interested in the full mirroring or copying of traders.