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Review of Choice of Traders (Strategy Providers) on Tradency Mirror Trader

Tradency Review: Traders to Copy on Mirror Trader (Strategy Providers)

A key factor when evaluating a social trading network or auto trading platform is the type and quality of the traders they have which you can copy. In Tradency’s case they call them “strategy providers”, which already suggests they give more importance to “strategy development” than manual trading.

In fact, most of the strategies you can select on Mirror Trader are running as EAs. I.e. these are trading robots which automatically execute trades when certain price levels are reached based on the trading rules which the strategy developer defined. Each strategy is also always linked to a specific currency. We therefore see two main types of strategy providers:

  • those who develop one EA and have it run against multiple currency pairs
  • those who develop a different EA for each currency pair

Some of their providers may also have multiple strategy names running, though unless they mention this in their description, it’s not possible to uncover this.

It’s also important to consider how someone becomes a “strategy provider” and how they get enumerated. To become a Strategy Provider someone has to register via the Tradency website. Once they’ve registered, Tradency will track their signals and start to record their performance. Signals can be send from a number of platforms, including MT4 (EA), Trade Station and via API. They will need to trade like this for at least one month and execute more than 30 trades before Tradency will evaluate the viability of their strategy to go live on Mirror Trader. Tradency will also conduct an interview with the Strategy Provider if their performance meets their initial standards. In addition the actual brokers can still decide themselves which “Tradency Approved” strategies they share with their clients (though to my knowledge most of them share all approved ones).

There’s no need for the “signal provider” to send their signals from a live account. However, Tradency does require some prove that they have a “real money” trading account though they don’t actually have to trade (or copy) all of their own signals from this live account. The actual signals can be sent from a demo account.

“Strategy Providers” get paid for the customers who copy their signals with live real money broker accounts. There’re two payment structures, dependent on the broker:

  1. Volume based model:
    they get 0.15-0.3 pips (depending on the broker) per round turn for each trade made by a subscriber to their strategy
    i.e. profit = (# of subscribers)x(# of trades)x(commission)
  2. Fix Fee model:
    for every active user which selected and traded their strategy at least once during a month they receive up to $3.75-$5 (depending on the broker) – however this amount is shared with other strategies, so if the user used 5 strategies during a month they’d get up to $3.75-$5 divided by 5, so $0.75-$1

The payment is not based on success (which is the case with some other social and auto trading networks) and they get paid monthly independent on whether they were profitable that month or not. However, if their strategy isn’t successful, they’ll normally lose active users and hence their fee will be impacted as well.

There’s certainly a good amount of choice of strategies on Mirror Trader to choose from with positive historical returns. However, because the focus is very much on automated systems (instead of traders) and each strategy is linked to a single currency pair, you will need to spend some time and effort in monitoring the strategies you select and in changing them if needed. I.e. a seasoned professional trader may use their strategy on some specific pairs depending on the market conditions, while on Mirror Trader the strategy will be available on each pair and it’s up to you to select which combinations to chose and when to change them.