eToro Presents: How to use CopyTrader™ Wisely

With the launch of the revolutionary eToro OpenBook and it’s flag feature, the CopyTrader™, many traders find themselves wondering how to use this social trading network wisely and how to CopyTrade for optimal results. In this article we want to share some tips on how to find the right traders to copy, how to manage your copied trades and how to minimize your risk when CopyTrading.

If you want to start CopyTrading, finding the right traders to copy is probably the most important decision you will have to make. Luckily, eToro OpenBook provides you with a number of ways to choose the forex traders that will make the most profits for you. First and foremost, you have the OpenBook rankings. These rankings rate traders according to their total profits over a given time period (you can choose anywhere between a week and a year), and show you some key statistics such as the trader’s profit amount and their profitable trade percentage. When it comes to choosing a trader to copy according to rankings remember that a high profit amount doesn’t equal consistent profits. If you’re going to copy a trader it’s probably better to go for a trader with a higher profitable trade percentage but who might be ranked somewhat lower, because it’s the percentage, not the absolute profit amount that will ultimately be reflected in your copied trades.

The second decision that you will have to make is how much of your account balance you want to dedicate to copy any one trader. The maximum amount you can dedicate to a trader is 20%, to ensure that you diversify your risk over several traders. In fact it’s probably better to choose a smaller percentage at first, like a trial run, and then if you see that the trades you copy from this trader are consistently profitable, you can very easily increase the percentage. It’s also advised to follow your copied trades closely, especially when you first start copying a trader. If you see that a trade is taking a loosing turn, you can always close it yourself instead of waiting for the copied trader to close it. And if you see that the trader is not making you much profits, it’s better to disconnect and find someone else to copy.

This feature is already changing the face of financial trading, and we’re seeing amazing results for traders using this feature.