In this article, we compare the markets in the context of copy trading and help you get started so you can diversify your portfolio.
When you enter the world of copy trading, you face an important decision: which markets should you choose to diversify your portfolio and increase your chances of success? In this article, we compare shares, forex and cryptocurrencies in the context of copy trading – including the strategies that SwissBot employs in these markets.
In copy trading, the trades of experienced traders or automated trading bots (“master accounts”) are copied in real time to the user’s own trading account (“follower account”). Investors thus benefit from the expertise of others or from AI-driven trading algorithms without having to make active trading decisions themselves. SwissBot combines automated trading algorithms developed in Switzerland with this copy trading approach
Shares are regarded as one of the more established asset classes. Those who are focused on long-term growth and are prepared to hold positions over an extended period will find this a comparatively predictable environment. With copy trading, you can copy experienced share traders and benefit from their strategies without having to delve deeply into fundamental analysis yourself.
Advantages
Disadvantages
With daily trading volumes in the multi-trillion range, the foreign exchange market is the largest and most liquid financial market in the world. It is particularly well-suited to strategies that aim to profit from short-term price fluctuations between currency pairs. In forex copy trading, AI-driven bots can monitor many currency pairs simultaneously, round the clock.
Advantages
Disadvantages
SwissBot employs the Forex Fox strategy in the forex segment: trading in up to 15 currency pairs with a target return of 40% per annum (target, not guaranteed).
Cryptocurrencies such as Bitcoin and Ethereum have attracted a great deal of attention in recent years. Their higher volatility compared to shares and forex offers opportunities for traders willing to trade short- to medium-term fluctuations – but also carries correspondingly higher risks.
Advantages
Disadvantages
| Criterion | Stocks | Forex | Cryptocurrencies |
|---|---|---|---|
| Volatility | Low to Medium | Medium to High | High |
| Liquidity | High (for blue-chip stocks) | Very High | Varies by cryptocurrency |
| Trading Hours | Stock exchange hours | 24/5 | 24/7 |
| Recommended Investment Horizon | Medium to Long Term | Short to Medium Term | Short to Medium Term |
| Barrier to Entry for Beginners | Low | Medium | Medium to High |
The decision between shares, forex and cryptocurrencies depends on your risk appetite, your investment horizon and your personal goals. Many copy traders deliberately diversify across several markets to spread the risk. It is important to remember that education and a basic understanding of the chosen markets help you to assess opportunities and risks realistically.
SwissBot currently offers four automated trading strategies tailored to different risk profiles:
Note: The target returns stated are targets and not guarantees. Trading involves the risk of loss; past performance is not a reliable indicator of future results.
