EA for MT5 [Eos] is released｜Dow Theory x Wave Analysis x SMC
Many beginners may be wondering how to proceed with forex trading when starting out. In particular, analyzing the market and making trades by oneself is a hurdle for beginners. This is where the "copy trading" method comes into the spotlight.
Copy trading is an easy way for beginners to start trading by directly copying the trades of experienced traders. Among them, "HF Copy" offered by the brokerage firm HFM is recommended for beginners because it is an easy and convenient service that can be used immediately after opening an account.
This article details the basic concepts of copy trading, the advantages and disadvantages of HF copying, and how to actually get started. We hope it will help beginners get a feel for trading and find a style that suits them.
Contents
目次を全て見る
What is copy trading?
Copy trading is a trading technique that automatically copies the trades of other traders in real time. In other words, by executing the same trades that experienced traders make in their own accounts, even beginners with little trading experience can achieve the same results as the professionals.
The mechanics of copy trading are simple. First, you choose a trader (=strategy provider) whom you trust and follow their trades. Once you set up a follow, the trades that the trader makes are automatically executed in your account as well. This allows you to effectively target profits without the need to trade yourself, even if you have little trading knowledge or experience.
Copy trading is beneficial for beginners.
Comparison of copy trading, discretionary trading, and automated trading
There are three main methods for starting to trade: discretionary trading, automated trading, and copy trading. Let's compare the characteristics of each method and the responses and stumbling blocks that beginners need to take before they can start trading.
| (data) item | copy trade | discretionary trading | Automated trading (EA) |
|---|---|---|---|
| learning cost | low (position) | high | Understand how to use the tool |
| Necessity of market analysis | unnecessary | high | May be required |
| psychological burden | small | high | small |
| Time Constraints | few | numerous | few |
| Initial Setup Difficulty | easy | - | Basic knowledge of tool operation, etc. is required. |
| Prepare a server (VPS) for trading | unnecessary | May be required | VPS contract required |
| Freedom of trading style | Depends on trader | freedom | program-dependent |
Advantage 1: Copy trading requires no market analysis.
For beginners, it is very difficult to select stocks to trade, to determine when trading is favorable, to calculate the appropriate lot size, and to consider the specific timing of entry and exit. If you trade without understanding the situation, you can easily lose and end up reducing your precious capital.
Copy trading, on the other hand, not only allows you to use trades made by other traders as they are, but also allows you to see in advance whether their trading strategies are profitable.
By copying the trades of consistently profitable traders, you can make quality trades without having to come up with your own trading strategy.
This is also a great advantage because you can start trading without any knowledge.
In addition, while it is sometimes difficult to withstand the pressure arising from the risk of losing money when making actual trades on one's own, leaving trade decisions to other traders can be expected to reduce the psychological burden in the sense that the risk of loss due to one's own errors in judgment can be reduced.
Advantage 2: Copy trading is easy to initially set up
One of the easiest points for beginners to stumble upon is the environment to start trading.
When conducting automated trading, the system for automated trading needs to run 24 hours a day, which requires the installation process of the tools and a server environment (=VPS) to ensure stable operation of the tools.
However, a copy trade allows you to duplicate a trade without a VPS because the trade provider's (=provider's) trade is copied directly to your own account.
Benefit 3: Copy trading saves time.
To achieve good results, you need to devote a lot of time to trading. (Understanding trading methods, market analysis and monitoring, algorithm development, etc.)
Almost everyone with trading experience feels that it is not so easy to trade with a single hand while doing your main job.
Essentially, to invest is also to "make money work for you.
The time spent on acquiring knowledge and creating a system is very important at the beginning, but if, on the other hand, you constantly spend a lot of time in the operational phase, you may seem to be working with the money, but in fact, you are working with the money yourself. Depending on the degree to which this is the case, it may be less valuable as an investment, or it may even be labor instead of an investment.
There is also the risk that the investment will fail because burdensome initiatives are difficult to manage on an ongoing basis and people stop investing in the middle of the project.
Copy trading is a great advantage because it can be used with little or no time commitment, as it can be used to not only establish trading strategies, but also to monitor the market and leave everything to the trader.
Disadvantages of copy trading and how to deal with them
Demerit 1: Risk of excessive dependence
If you rely too heavily on copy trading, you risk not improving your own trading skills. By leaving all trading decisions to others, you will not develop market understanding and analytical skills.
Gradually establish your own trading style, referring to copy trades and understanding under what circumstances it is advantageous to trade.
Demerit 2: Cost of commissions and spreads
When using a copy trade, fees are charged by the service.
There are various types of copy trading, including subscription-based (where a monthly fee is charged just for subscribing to a signal) and performance-based (where a predetermined fee is charged only if a profit is made).
In addition, the account to be prepared for copying can have a large or small spread depending on its account type. (Standard type accounts have wide spreads, professional accounts have narrow spreads, etc.)
It is important to understand the costs involved in copy trading and then evaluate whether the costs are worth it to copy or compare them to the costs involved in other trading methods (automated trading (EA), discretionary trading) to choose the most cost-effective method.
Demerit 3: Trading risk of the copy source trader
If the trader from whom you are copying makes high-risk trades, that risk will directly affect your own trading. If you choose a high-risk trader, you may incur significant losses.
Try to copy trades that seem to be stable and sustainable, while understanding the risk of the trade based on the past balance trends, drawdowns, etc. of the source account.
Let's take advantage of the HF copy!
What is HF Copy?
HF Copy " is a copy trade service provided by the securities company HFM.
Not many brokerages offer copy trading, but HFM offers a copy trading service that is easy for beginners to use.
Is the brokerage firm HFM reliable?
HFM (formerly HotForex) is a stable brokerage firm established in 2010 and has been in operation for a long time. The entire group holds six financial licenses and is used by many investors worldwide, with more than 2,500,000 customer accounts worldwide.
HF Copy does not require a VPS contract
Some copy trading services require a VPS to receive signals and launch trading tools, but HF Copy does not require a VPS.
The VPS contract itself is costly and requires time and effort to maintain the environment, but not having to do so is a major advantage.
Especially when operating funds are small, the monthly VPS fee tends to account for a larger percentage of the cost, so the advantage of HF copying is greater when operating small amounts.
Many HF copies are trade providers (strategy providers).
As of April 2024, there will be approximately 400 active strategy providers.
The abundance of options also increases the likelihood that you will be able to choose the trading strategy that is right for you.
In addition, multiple trading strategies can be operated at the same time, so by combining the best ones and operating them simultaneously, you can diversify your risk and increase your profits.
HF copies are supported in Japanese.
HFM appears to offer support in 20 languages, with Japanese support available.
Because you can communicate in Japanese through chat and e-mail, you can use the system with confidence even if you do not know how to set it up.
How to start a HF copy
1. Create an HF account
If you have not created an HF account, please refer to the following article.
2. Log in to myHF
Go to the login page and log in using your myHF account.
3. Deposit to myHF's wallet
When subscribing to a strategy, you will be required to deposit funds into a trading account that will be automatically created for you. Store the amount you plan to deposit in advance in your wallet.
As an overseas brokerage, international remittance is required. Various deposit methods are available, but only three are compatible with Japanese yen: bank transfer, bitwallet, and BXONE.
*Instead of depositing funds into one of the live accounts, we will first deposit funds into the wallet. When you create an HF Copy account, funds will be transferred from your wallet to the newly created account, so you need to have funds in your wallet. If you have deposited funds into your live account by mistake, you should move the funds to your wallet.
4. Find a strategy
- Select the side menu HF Copy → Follow Strategy.
- Find the strategy you want to copy among the strategies displayed.
Key points when looking for a strategy 1. Choose a long operational period.
Those with very high profit margins tend to appear at the top of the list, but there are also those that display a high false profit margin by making unreasonable trades in a very short period of time.
Choose an investment that has a long investment period and a steadily rising balance, because it is easier to continue to invest in an investment that not only has a high profit rate, but also one that is stable and rising over a long period of time.
Key points when looking for a strategy 2. Check costs
HF Copy will aggregate profits and losses on a two-week basis and pay a portion of the profit amount to the signal distributor as compensation only if there is a profit.
Check the percentage of compensation (Performance Fee) when a profit is generated. As a general trend, 20~30% seems to be the market rate.
If the reward percentage is extremely high, examine whether you are comfortable with it before following through.
In addition, the available account types are determined for each signal, but Premium accounts tend to have wider spreads (= higher commissions per trade) and Pro accounts tend to have narrower spreads (= lower commissions per trade).
Since the spread is a fee that is difficult to see at first glance, it is important to check not only the Performance Fee but also the Account Type in advance.
You can view them all at once by going to the Find Strategies screen and viewing the Performance Fee and Account Type columns.
Since there seems to be a limit to the number of *columns displayed, let's uncheck one of them, such as Currency, and add the above two cases.
4. Follow the strategy
- Once you have decided which strategies to copy, click the "Follow" button.
- Set the various conditions for following a strategy and start following it.
(data) item | Description. |
|---|---|
| Add amount to Strategy | Specify the amount to be credited to the account for copying. The minimum deposit is set for each strategy, so check the conditions of the strategy you wish to copy and specify a minimum amount. |
| Volume Allocation | The percentage used to determine the copy ratio along with the effective margin. The formula for calculating the amount of trades you copy (copy ratio) is: Customer's effective margin / Strategy Provider's effective margin. Specify %~100%. |
| rescue level | It is a percentage of margin that is not used for new transactions in case of losses. Once this level is reached, all open positions held are closed and any remaining funds are transferred to the wallet. |
| Copy minimum/maximum quantity | New openings, position sizes based on copy rate,
The amount of positions formed in a follower account is determined by the ratio of the strategy provider's positions to the trader's copies. Example: The If the trader's equity is US$400 and the strategy provider's equity is US$1,200 and an 80% volume allocation rate is selected, the copy ratio is calculated as follows Follower Equity / Strategy Provider Equity * Volume Allocation % / 100 = Copy Ratio 400/ 1200 * 80/ 100 = 0.26 If the strategy provider positions 0.15 lots, the follower account would be 0.03 (0.15 * 0.26 = 0.039 = 0.03, trading volume rounded down to the second decimal place). In this case, the current copy ratio is sufficient to follow the trading volume of the strategy provider. If a trader takes another position with 0.03 lots, the size of the position disclosed to the follower's account for that particular trading instrument will be less than the minimum trade size of 0.01 (0.03 * 0.26 = 0.0078 = 0.00). In that case, the copy rate at that point will not reach the SP trade size.
|
| Introducing Broker ID or Campaign ID | 340746 Enter "340746". |
| I confirm that I have read and agree to the HF copy | After reviewing the terms and conditions, check the box if you agree. |
HF Copy FAQ
No, that is not necessary. A minimum deposit is set for each strategy, so as long as the deposit is above that amount, it does not need to match the source account.
No. The ratio of the balances of the source account and its own follower account determines the number of lots after the base copy.
[Example: If the balance in the source account is 100,000 yen and the balance in his follower account is 50,000 yen,
If a 0.1 lot trade occurs in the source account, the base lot in the follower account will be 0.05 lots.
In addition, the "Volume Allocation" is what determines what percentage of this base lot will be entered.
In the above example, if Volume Allocation is set to 100%, the entry is made with 0.05 lots; if Volume Allocation is set to 80%, the entry is made with 0.04 lots.
No. Strategy accounts and follower accounts are always tied 1:1.
You may only subscribe to one strategy per follower account.
However, you can create up to 10 follower accounts, so you can subscribe to multiple strategies at the same time.
HF copy of automated trading tool Selene is now available!
We have made it available in HF copy so that even beginners can use it easily! 
Forex Automated Trading Tool [Dow Theory Swing Trade Type EA Selene] Product OverviewProduct Overview Sequential swing trade type EA based on Dow Theory The Dow Theory Indicator will make entries in the forward direction at points judged to be favorable for entry b
Dow Theory Swing Trade Type EA Selene] Won a prize at the FXGT trading competition!
I won a prize in the FXGT trade competition! Along with the HFM real account, I was running Selene separately in my FXGT trading competition account... The top 80 places were eligi
Automatic trading tool Selene] Annual interest rate exceeded 100%!
Selene (Dow Theory based EA) has surpassed 100% annual interest! https://smart-trading-strategy.com/fx%e8%87%aa%e5%8b%95%e5%a3%b2%e8%b2%b7%e3%83%84%e3%83%bc%e3%83%ab-selene%e3%83%8
How to use guide [A must-read for beginners] Amazingly easy! Forex Debut with Copy Trading
Many beginners may be wondering how to proceed with forex trading when starting out. In particular, analyzing the market and making trades by oneself is a hurdle for beginners. Thi
Launch of Selene: New High-Win Rate MT5 Day Trading EA
New automated trading tools have been released! After more than a year of repeated logic study and improvement, we were finally able to create a product that we were satisfied with
summary
HF Copy is a recommended service for beginners
HF Copy is a very beneficial service for beginners. The main attraction of this service is that you can easily copy the trades of excellent traders and start without the need for infrastructure. It also offers the advantage of easy risk management and the ability to find a trading style that suits you by referring to the trades of several traders.
Improve your skills by making good use of copy trading
By utilizing copy trading, even beginners can experience professional trading. However, it is important not to rely too heavily on it and to gradually improve your own trading skills. Learn how to choose traders and analyze their trades to establish your own trading style.
Establish your own trading style when you get used to it.
It is important to gradually hone your trading skills while utilizing copy trades. Analyze the results of your trades and learn the difference between successful and unsuccessful trades. You can also practice more advanced trading by utilizing MT5, indicators, and EAs.
Copy trading is also recommended for EA users
From the distributor's point of view, there may be cases where a distributor is distributing logic that is not suitable for general EA distribution (e.g., incorporating machine learning, etc., and the EA must be distributed as a set with a learning model to work, but the EA cannot be distributed to avoid leakage of the learning model, etc.), but the product itself will not be exposed if it is a copy trade. However, with copy trading, the product itself is not exposed, and the distributor may be trying to monetize the product by distributing it.
This will also be a good opportunity for those who are too familiar with MT4 and are hesitant to switch to MT5 to experience the new strategies with new features.
For users who used to think of automated trading as "EA" or "MT4 if you want to use EA," the ability to see a variety of copy trading signals, get new trading methods and ideas, and easily copy and try them out will be a big advantage.
We encourage you to try copy trading and find the trading style that suits you best.
