In various businesses trading is not possible on the strategies made by you. In such circumstances you have to find some other way to figure out the problem. Mirror trading is one of those solutions to such problems.
First thing comes first so we will discuss the history of mirror trading. It is an upgraded form of algorithmic trading also known as black box or automated trading. In algorithmic trading various computer based software are used to enter the trading orders. Computer takes this decision by calculating various business aspects like quality, price, time etc.
In a mirror trading methodology, you represent financial marketers and the traders, various different strategic plans to choose the one that best fits their trading procedures and by which they can get maximum profit they want. On the basis of this they can imagine the risk factors and profit chances for their business. This makes the traders to decide more smoothly which trading procedure they want to implement and which one is not applicable. They can also extract a new strategic plan out of all those represented by you which sounds them even more secure and transparent and more beneficial.
In this way the traders find their investments even more secure because the whole process is transparent and they have enough knowledge of all the ups and downs that they probably can face. Mirror trading is being widely used by forex exchanges.
Now come to the advantages of mirror trading. Mirror trading technique is really beneficial for high level trading as is done in forex exchanges. Mirror trading is preferred by any other trading because of the following factors.
• It is more transparent than any other algorithmic trading procedures.
• Traders choose the one strategy out of many which best suits his/her profit margined and his/her future plans.
• You can see the results of your plan even before its implementation.
• You can easily visualize the future growth of your business by analyzing those results.
• You can also figure out the future risk factors by analyzing the inflation growth.
• You can also extrude the emotions by showing him the facts and figures.
• In future the trader will also prefer mirror trading because of the above mentioned benefits he/she gets from mirror trading.
Summarizing the whole discussion we can say mirror image is a real time opportunity for traders.