Tradency Review: Selecting Traders (Strategies) to Copy
In order to help you select strategies which best match your trading profile, Tradency’s Mirror Trader gives you a few options to filter the strategies.
If you’re mainly interested in looking at what strategies other traders follow, you can rank them by Top Selected (i.e. most selected strategy within a time-frame), Top Traded (i.e. most live trades executed) or Top Live Balance (i.e. largest subscribe live balance). Alternatively you can also rank them by their T-Score (a proprietary Tradency scoring method).
The more advanced Custom Filter lets you select the strategies by the following criteria:
- Time Frame: last 7, 14, 30, 60, 90, 180 days / last 12, 24 months
- Strategy Name
- Symbol Traded
- Pips: profit over the Time Frame
- Max DD: The worst losing sequence of the strategy in pips over the time frame (the largest drop from net balance peak to net balance valley). Please note though that the maximum drawdown is based on closed trades (i.e. this drawdown figure does not include drawdown of any open trades)
- Max Positions: maximum positions the strategy opened at ones during the selected Time Frame
- Total Trades: executed over Time Frame
- T-Score: this is a unique Tradency scoring method indicating the strategies’ relevancy to the current market conditions. The T-Score is independent on the Time Frame meaning strategies will have the same T-Score within different time frames
- RAR: Risk Adjustment Rate calculated as Pips/Max DD
- Win%: number of winning trades as % of total trades
- P/L ($): profit or loss in $ terms over selected period
Within the filter’s search results, you can order the Tradency strategies based on any of the above criteria as well. In addition you can also order them by Start Date (when did the strategy first become available on Tradency), Profit Factor (ratio of winning to losing trades), ATT (average trading time), APT (average profit per trade in pips), ALT (average loss per trade), LPT (largest profitable trade) and LLT (largest losing trade).
The strategy interface also lets you compare the profits in pips graphs of up to 5 different strategies you select (as demonstrated in the picture above). From the interface you can also add a strategy to your portfolio (to automatically start mirroring their trades in your account) or to your watchlist.
The way Mirror Trading interface works is that it allows you to add as many as the above filters and criteria as your screen resolution can support. Therefore it looks better on large desktop monitors than on small screen laptop or tablet, since not much of the info can be displayed on those screens at the same time.
For more information on any of the strategies you can just click on the name. The will bring up further information about the strategy, including:
- 2 Graphs: profit in pips over time or T-Score over time
- Strategy statistics (the same ones displayed in the search results)
- Strategy’s current open positions
- Strategy’s full historical trade history (which can be exported to Excel as well for further analysis)
- Strategy description by the strategy provider (they range from being very basic to being very thorough and including full trader’s profiles)
The strategy selection tools provided are certainly useful and by providing the full trading history and current open trades, the information Tradency provides is fairly transparent. However, we feel that some of the indicators they provide can be misleading, especially to novice traders. The key one here in our view is the Drawdown value which only takes into account closed positions. Any experienced trader will know that strategies with large winning ratios normally leave their positions open for longer times while incurring potentially large drawdowns until the markets reverse and the positions are eventually closed. By omitting this info from the drawdown value and related indicators the risk of these strategies may be perceived to be much lower than it actually is.
A lot of emphasis is also given to the T-Score, though how this is derived is not explained anywhere. However, we managed to get some additional info on this and it seems it’s made up of the following components:
- (Average Profit per Trade)/ (Average Loss per Trade) calculated since inception.
- (Pips)/(Max DD), i.e. the Risk Adjustment Rate calculated since inception.
- Momentum calculated for the strategy’s recent closed trades.
- Trade frequency calculated for the last 30 days.
Hence because it again includes a drawdown value based on closed trades only, we’re fairly sceptical of putting much value into it. From the strategy information screens it’s also not clear whether the strategy providers trade those strategies with their own money or not. We feel this could be a useful addition.
While there’s certainly room for some enhancement to the Strategy Provider selection features the key positive feedback here is that all the data provided by Tradency is fully transparent. I.e. you have access to every single historical trade of the strategy on the Mirror Trader platform and can view any current open trades (this is unfortunately something not offered by some of the other social networks). Also, while the drawdown value can be misleading for some strategies, you can work out a more realistic value from the Excel export of the historical data (though this requires some trading and Excel knowledge).