Copytrader is an expanded function of OpenBook which was presented by eToro in 2011. This element produced a revolution in online trading. Copytrader allows you to follow super traders and make the same decisions they make in dealing by a simple click. To start copying a person, run the eToro OpenBook, check the trading rankings of other traders and look for the best traders. When you find a productive trader and assume they’ll continue successfully, then you can click on that trader and choose a percentage of your assets (maximum 20 percent) to bet on them. If you decide to bet a quantity of $1,000 and the following trader bets with 15 percent their cash, you should bet with an amount of $150 on that dealer. At the same time you can follow up to ten merchants.
Making Money with eToro Copytrader
Generating income with Etoro Copytrader
Etoro provides a truly exciting experience for its users by introducing its CopyTrader function in their social platform for buying and selling. It is because you can easily earn money by copying professional traders who are successfully making good quantities of cash. If aren’t sure about trusting this service, you can use the trial Etoro account before choosing to actually invest your real money. You will receive $10,000 as play money in your demo account which you can make use of to check out the services given by the Copytrader. The first thing you should really do is to lookup dealers who have better scores and who have constantly gained profits over a period of time. You can then replicate these investors and copy up to 10 traders in total. You can bet as much as $2000 altogether for a trader. You can pick this amount based upon how much a trader seems to be earning.
Aspects and annotations of possible difficulties with CopyTrader
It is very important to evaluate the possible factors and clarifications for unsuccessful results of the Etoro CopyTrader. In the subsequent lines, a few of the reasons will be mentioned:
This is one of the severe problems when mutual funds are discussed. It is a frequent problem in off-set fund and similar industries. It really means that members have the capability to view the actions of survivors only. That’s why it’s called “survivorship bias”. For instance, there can be a lot of risks involved in investments in hedge funds. Sometimes these types of funds may lead to big losses. Consequently, the investors will usually tend to sell the stock shares and the hedge fund goes to the closing point progressively. Just in case liquidation of a hedge fund occurs within 3 years, this is not going to be taken into consideration the 5 years performance research of hedge funds.
Trading strategy has to be altered
At times the cause of failure is basically that the trading method stops working. This could be a possible problem with Nmarijus. Often you might encounter a situation where a claim is made that future gains can be independent of the previous performance. The foreign exchange market changes fast and a trading strategy that has been working effectively can switch to losses all of a sudden if the investor doesn’t adjust them self to the changes. As a result, even if you are following a trader ensure you keep close track of changes in the market and how well they adapt their strategy.
Producing an influence on the market
It’s impossible for some market actors to modify the forex market patterns by the large amounts of cash dealt. But in case there is a large amount of followers behind these merchants like NMarijus that make the same trading transactions, there’s a chance of good influence. Having said that, if the capital amount of the copying trader is substantial then there’s surety regarding making an impact on the forex market. And the factor could be up to 10,000.
Our Suggestions for working with the CopyTrader
By using the next recommendations, you can make use of the impressive functions of the Etoro Copytrader.
Be cautious when picking traders
You ought to spend more effort and time on examining and choosing the successful dealers to copy. A trader with a lot of variations isn’t a good to follow as they will invest too much capital on a single trading transaction. Therefore, if one of said transactions results in losses, these losses could be too much. You really should choose only the traders with frequent successful results for a long time.
See Etooro ranking system video review:
Guru Finder – Useful for researching good traders
With the Guru Finder tool presented by EToro, you are able to find excellent dealers to follow. You can also use filters to customize your search for successful traders. Said filters include:
– Average Position: Average Position is an expression used for percentage of position used from the accessible capital amount. It’s one of the most important principles of money management to gamble only a maximum of 5 percent of assets in a single trading transaction. You need to keep this filter to 10 percent to be able to find dealers that take fewer risks.
– Leverage: This, just like average position, consists of calculating risk. It refers to how often a certain trader will get into a bet where the leverage amount is the same as or more than 100.
– Weekly Drawdown: It refers to the greatest loss experienced by the trader in a full week. The risk is less if the quantity is less.
– Winning Weeks: This gives a total percentage of profit revenue weekly over time. A dealer may have 80 percent value if they’ve been making money often for up to 20-15 weeks.
– Win ratio: This is the ratio of a rewarding trading transaction compared to the complete amount of trading transactions.
– Gain: This is the basic revenue of the dealer as percentage accounting for both gains and losses.
– Minimum number of trades: With this you can get an idea of the number of deals from which all other information is gathered. Therefore, this will supply the validation of data.
– Average trade duration: You are able to check the average timeframe of the deal here. This may range from a day to a month.