Hi,
I’ve read people mentioning the master & slave trading strategy, but I could never find information about what it is or how it works. Can someone explain for me the general concept? (Does it involve leather? jk)
Thanks
I will give you the quick answer, not the complete answer. The situation I am most familiar with is when an individual wishes to trade multiple accounts for whatever reason. Instead of entering N trades when trading opportunity presents itself, he enters the trade on the master account, and software executes the trade simultaneously on the slave accounts. The software is usually called a trader copier and some versions are free, but the better stuff is commercial.
Ok, that makes sense. But what is the overall benefit of doing so? Avoiding detection of the use of frowned upon strategies in a single, larger cap account?
I’m not sure why people trade multiple accounts. I think there are different reasons.
Yes, there is several reason to use multiple accounts for same purpose. These reason may be vary trader to trader.
Simple, master account sends trade signals and slaves receive them. In EA running on MT4, you can have as many master/slave accounts that you want. currently, with my account with tradecopier i have around 100 accounts already. Understand this image below:
You may not be clearing out something important: no always do the slave accounts belong to the same person, so you can have people following your signals (you are the master) or follow someone elses signals (you are the slave). This is an example of one trade copier: MT4 Trade Copier - The FASTEST Forex Copier Trade Tool on the Market
Leather is optional
What kevintrader101 said is correct, some use the Trade Copier as a way to trade for other people.
Another use of the trade copier is to spread out your risk. Different brokers have different feeds, so the result on one broker might be different on another.