At XMTrading, you can set up and trade a free automatic trading (EA) system with MT4, so we will introduce and explain it. XMTrading allows you to trade using an automatic trading system. Free EAs have come out, and some people are using them casually, but the drawback of automatic trading is that most people end up spending the entire amount. For those who are thinking of starting trading, I would like you to consider discretionary trading. This time I will explain the risks in automated trading.
What is automatic trading? What kind of thing?
Automated trading (EA) is an abbreviation for “Expert Advisor” and refers to an automated trading program that can be used on MT4/MT5. By downloading an EA (automated trading tool) onto MT4 or MT5, FX trades will be automatically performed according to the trade rules built into that EA. Since it is automatic trading, unlike discretionary trading, there is no need to constantly stick to the chart. The company we operate, XM, is a good broker that ranks high in popularity, so there are many people who do automatic trading. Some people use their time to test their systems.
structure
When the automatic trading switch is turned on, contrarian entries will be entered at the stage where the market is tilted towards selling or buying. If you tilt it further, it is a mechanism that more entries enter. In most markets, if you move unilaterally in selling or buying, there is a reaction and it has the property of returning, so it will eventually return and the entered position will become unrealized profit and will be automatically settled. what to say. This allows us to win 90% of the market.
However, sometimes strong trends occur in the market. It moves unilaterally in the direction of selling or buying, and the entered position becomes full of unrealized losses, and the number of entries continues to increase, eventually leading to losses exceeding the principal and bankruptcy. It will be. The risk of automatic trading is that it will collapse when a strong trend occurs. Even if you boast a winning rate of 90% or more, it will all disappear with a big flow of 10%.
merit
Automatic trading automatically performs FX trading, so if you import it on MT4 / MT5 and operate it, you don’t need to see charts, new orders or payments at all. Even those who usually cannot handle Forex during the day due to work can make money with Forex during work by operating EA.
Also, there is an advantage that it is not influenced by emotions as a merit. If it is an EA, there is no emotion at all, and FX trading is performed only by taking over the trading rules, so there will be no strange losses.
Demerit
The EA’s biggest weakness is unexpected price movements in the Forex market. In FX, price movements are most intense and unexpected price movements can be seen during economic indicator events such as employment statistics and FOMC.
Even when a strong trend occurs, the EA will break down with a fairly high probability. One trend can ruin all your hard-earned money.
First of all, you can’t win
First of all, you can’t win with EA. At XM, you can open an account and trade freely, and there is also a zero cut, so there is no margin call. However, among the many investment methods, system trading is always a loss because it will be caught in a trend before it is completed. You can use it from home, such as campaigns, but it will not be able to withstand unrealized losses and will go bankrupt. The longer you do this and the more times you do it, the more likely you are to go bankrupt. There are various accounts such as kiwami 極 and standard accounts, but they are all the same. Even if you have a 90% win rate, all your important funds will fly away in one trend.
Even if your win rate exceeds 90%, it’s meaningless.
Even if your win rate exceeds 90%, it’s meaningless. Even if your automatic trading has a 95% win rate, if you get caught in the trend in the remaining one time, the position will be entered endlessly and will not reverse, so you will end up with unrealized losses. Members should use this as a reference, choose discretion, and analyze the market in advance. In Japan, the optimal environment for trading is provided, and you can hold a wide variety of stocks. Even if you find a good EA, it will only produce the results above. Stop installing the EA now and do it with a discretionary state that you can feel comfortable with. You can enter a position while watching the numbers from the platform.
The reality is that you cannot win with XM automatic trading.
The most important thing you want to know is whether XM automatic trading operates 24 hours a day and actually makes money. In reality, the vast majority of people go bankrupt and lose all their money. One of the reasons why most automated trading tools are said to be fraudulent is because they fail. It doesn’t matter if the programmer is good or not. Since the market fluctuates based on emotions, it is not so easy to win. Therefore, please refrain from purchasing for a fee. It is very important to judge and win with your own discretionary trading.
Past performance
For EAs that exist on the internet, you should be able to see the past results and achievements that the EA has operated so far. However, past performance is no guarantee for the future. In other words, winning in the past market does not guarantee that you will win in the future. Just checking the backtest information does not mean you can win.
Winning rate
There are people promoting EA on Twitter etc., but the winning rate has nothing to do with it. This is because even if the winning rate is over 95%, if you get caught in one strong trend, the EA’s margin will always be zero, and the result will be bankruptcy no matter what the settings are. In particular, suspicious companies introducing EA are dangerous both domestically and overseas. The official website does not completely prohibit automatic trading or double-denomination, but if you violate any of the prohibited items, your account will be frozen.
Multiple operations possible
It is also possible to start XM’s EA on multiple screens. If you have enough funds, you may be able to make money efficiently, but if you raise lots in the same currency pair, if things go against the grain, you may draw down both and go bankrupt. It is dangerous if you do not withdraw money at least frequently. Basically, swap points will be generated even if the account you choose is a standard account or a micro account. A real-time zero-cut system will also be used.
Practice on a demo account
If you have no trading experience, we recommend that you try a trial trade with a demo account. Adding a regular account is easy, and the balance is not real money, so you can use it as much as you like. There are no fees and no rejections will occur. You can also start trading on your smartphone, so check it out. There are many detailed reviews on the internet, so it would be a good idea to check them out.
Discretionary trading recommendations
As mentioned above, let’s not be deceived by sweet words that say that you can leave it alone and earn money on your own. Trading cannot be won by logic alone. Experience and knowledge are also required.
It will take a year or two to be able to win in discretionary trading, but once you do, you will be able to earn money on your own without relying on EA. If you try to escape in an easy direction, most of them will be deceived by fraud. Be careful.
mirror trade
Copy trading or mirror trading is possible on XM. Mirror trading can be easily introduced even by beginners and those who are not very familiar with PCs, and can efficiently aim for large profits. Unlike automatic trading, mirror trading is a method that imitates the trades of skilled professional traders, and is a method that even beginners can quickly earn money from. Since entry, profit taking, and loss cutting are performed according to the trading strategy established by professionals, even FX beginners can easily make profits if successful.
Can you win with mirror trading?
The mirror trading done by the operating company is not left on a high-performance computer. Even if the market becomes unstable due to important people’s statements or announcements, the winning rate is higher than with EA because there are people watching. At the very least, it is meaningful because you can learn by watching the trades. If you follow traders with good performance, there are many opportunities and it is very attractive. It is not influenced by mentality and each has its own advantages.
Difference between mirror trading and automatic trading
Automatic trading ignores entry timing and enters at a certain timing, so it has no advantage at all and is a trading method with a high failure rate. On the other hand, in the case of mirror trading, if you mirror trade with a skilled trader, you can enter at a position where you have a high advantage, so the winning rate is extremely high and you can reduce the risk of losing the entire amount in one shot. Additionally, VPS is required for automated trading software. A VPS or virtual server is not required to use Mirror Trade.
Is mirror trading illegal?
Mirror trading is currently not illegal. Also, XM does not prohibit mirror trading, so you can do it without any problems. Unlike automatic trading, mirror trading is a unique discretionary trade, so although it does incur commission fees, it is convenient. Of course, it is difficult for beginners to win, but if you copy what professional traders do, you can earn a stable amount of money every month. Start small.
How to do a mirror trade
To perform mirror trading, first download MT4/MT5 from XM, then open MT4/MT5 and log in. Launch the navigator in MT4/MT5 and select “Signal”.
After clicking “Signal”, select a mirror trade that meets your conditions and start trading. Now, when a trader makes a trade, your account will automatically start trading.
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