How to Copy Deals of Successful Traders in MetaTrader 5
Forex trading can be challenging, but with platforms like MetaTrader 5 (MT5), traders have the opportunity to copy deals from more experienced and successful traders. This practice, known as copy trading, allows less experienced traders to replicate the strategies of seasoned professionals without having to monitor the markets constantly or develop their own trading strategies. In this article, we will explore how you can copy deals of successful traders in MetaTrader 5, covering the key steps, available tools, and important considerations for effective copy trading.
What Is Copy Trading?
Copy trading is a form of social trading that allows one trader to automatically copy the trades executed by another, typically more experienced, trader. This is a popular approach for beginners or those who lack the time to perform their own market analysis. By copying the trades of successful traders, individuals can benefit from their expertise and strategies, effectively mirroring their profits (and, potentially, their losses).
MetaTrader 5 offers several ways to engage in copy trading, allowing users to leverage the success of others in real time.
How to Copy Deals in MetaTrader 5
1. Use MetaTrader 5's Built-In Signal Service
MT5 provides an integrated signal service that allows traders to subscribe to the signals of successful traders. The platform has a built-in Signal tab, where traders can browse through a list of signal providers, each with their performance history, risk levels, and fees clearly displayed.
Steps to Set Up Copy Trading in MT5:
Open MetaTrader 5: First, launch your MT5 platform and go to the "Signals" tab, which is located in the "Terminal" section.
Choose a Signal Provider: Browse through the list of signal providers. You can filter providers based on performance, risk level, and trading style. Pay attention to statistics such as:
Total Profit: How much profit the provider has made over a period.
Drawdown: This shows the maximum loss the trader has experienced.
Number of Subscribers: A higher number of subscribers often indicates trust and popularity.
Subscribe to the Signal: Once you've selected a suitable trader, click "Subscribe". You may need to pay a subscription fee, which can range from free to a few hundred dollars, depending on the signal provider.
Configure Copying Settings: Set up your preferences, such as lot sizes, stop loss, and take profit levels. You can choose to either copy trades with the exact same lot sizes as the signal provider or scale them according to your account balance.
Start Copying: After configuring the settings, the signal will automatically copy trades from the signal provider’s account to yours in real time.
Case Study: Choosing a Signal Provider
Suppose a trader is interested in copying a provider who has shown consistent profits over the last 12 months with a maximum drawdown of 10%. The provider has a monthly subscription fee of $30 and has 200 subscribers. By subscribing to this provider, the trader can copy all trades automatically, without having to monitor the market themselves.
| Signal Provider | Monthly Profit | Drawdown | Subscribers | Monthly Fee |
|---|---|---|---|---|
| ExpertTrader123 | 8% | 10% | 200 | $30 |
2. Use a Third-Party Copy Trading Platform
Another way to copy deals in MT5 is by using third-party copy trading platforms, such as ZuluTrade, Myfxbook AutoTrade, or eToro. These platforms integrate with MT5 and allow you to follow and copy the trades of experienced traders.
How to Set Up Third-Party Copy Trading:
Choose a Copy Trading Platform: Popular platforms like ZuluTrade or Myfxbook AutoTrade provide extensive lists of traders who you can follow. These platforms offer detailed statistics on each trader's performance, including their profit history, risk levels, and strategies.
Link Your MT5 Account: After selecting a platform, you’ll need to link your MT5 trading account to the third-party service. This is usually done through an API or by inputting your broker’s MT5 login credentials.
Select a Trader: Browse through the list of traders on the third-party platform, using filters like profit margin, risk tolerance, and strategy. Choose the trader you want to copy based on your own trading goals and risk appetite.
Configure Settings: Like the MT5 built-in signal service, these platforms allow you to adjust settings such as trade size, risk management, and copying ratios.
Start Copying: Once set up, trades will be automatically copied from the selected trader to your MT5 account in real time.
Example: Copy Trading via Myfxbook AutoTrade
If a trader selects a top-performing signal provider on Myfxbook AutoTrade, who has averaged 5% monthly profit with low risk, they can connect their MT5 account and set up proportional lot sizes. This way, if the signal provider trades 1 lot and the trader’s account is one-fifth the size, only 0.2 lots will be traded on their account, ensuring consistent risk exposure.
| Provider | Monthly Profit | Risk Level | Lot Size Scaling |
|---|---|---|---|
| TopTrader456 | 5% | Low | 20% |
3. Use Expert Advisors (EAs)
Another method to copy deals in MT5 is through Expert Advisors (EAs). These automated trading systems can replicate the trading strategies of successful traders or even pre-programmed strategies. EAs can be downloaded from the MetaTrader Market or built using MT5's MQL5 programming language.
Steps to Use an EA for Copy Trading:
Download or Create an EA: Browse the MetaTrader Market for ready-made EAs or hire a developer to create a custom EA based on a specific trader’s strategy.
Install the EA: After downloading the EA, place it in the "Experts" folder of your MT5 platform.
Run the EA: Open the desired chart in MT5, attach the EA to the chart, and configure its settings. The EA will automatically begin executing trades based on its programmed strategy.
Monitor Performance: EAs operate automatically, but it's important to monitor their performance regularly to ensure they are executing trades as expected.
Key Considerations for Copy Trading in MT5
While copying successful traders can be profitable, there are several key factors to consider:
Risk Management: Always manage your risk carefully, especially when copying traders with aggressive strategies. Configure stop-loss levels and adjust lot sizes according to your risk tolerance.
Trader Reputation: Ensure that the trader you are copying has a consistent track record over several months or years. Avoid signal providers with high drawdowns or short-term successes.
Fees: Some signal providers charge monthly fees or take a percentage of your profits, so be sure to factor these costs into your decision.
Conclusion
Copy trading in MetaTrader 5 is a powerful way to leverage the expertise of experienced traders. Whether using MT5's built-in signal service, third-party platforms like ZuluTrade or Myfxbook, or automated Expert Advisors, you can easily replicate the success of professional traders. However, it is essential to thoroughly vet any trader you plan to copy and always manage risk carefully to protect your account.
