How to pick a trader to Copy
Before using Tradeo’s great Copy feature you would need to pick traders that you would like to Copy trades from. In this article we will go over the process of analyzing and choosing a trader to Copy using the “Traders“ section.
Once you open the “Traders“ section all the traders trading with Tradeo will be grouped in categories with the first category being “Top Traders”.
“Top Traders” category gives you a list of traders with some of the best results. Their performance is such that these traders are able to achieve a good balance of risk versus returns.
“Most Copied” category includes traders that have the biggest amount of other traders copying them.
“Most Followed” category gives you a list of traders with the biggest followings in Tradeo.
“Risk Takers” category groups specific traders that trade with high risk tolerance.
“Recommended for you” is a category that simply groups traders that are recommended based on their overall performance.
Once you start going through the different categories you will start to get an idea about which traders you want to know more about based on the summary of their trading activity.
When a specific trader catches your eye it is time to click on that trader’s “Profile” button and find out more about this trader’s performance.
Now that you have opened the profile of this trader you can analyze this trader’s performance more in depth. You would need to pay specific attention to some of the details in the profile.
Some details that are of special importance when judging a trader’s performance are:
– Lifetime graph of the gain – this will show you how this trader has performed over the entire period of trading with Tradeo. The gain does not include profits generated by copying other traders.
– Maximum drawdown – the maximum percentage by which the trader’s account has decreased over the period. This is also seen on the lifetime graph.
– Number of trades – obviously it is wise to consider the amount of trades that generated this result. The bigger the number of trades the more reliable the statistics become.
– Copy/Manual – The trader’s performance is judged on trades that are done manually however it is good to know whether this trader is mostly trading manually or copying other traders. Remember that when you start copying a trader you are only copying the trades that he performs manually and not the trades that he/she is copying from other trader.
These are the steps that you need to go through when picking traders to copy but there is some additional rules of thumb when it comes to copying other traders’ performance.
It is wise for instance to diversify your copying and not put too much importance on a specific trader. You should rather pick several traders with good statistics and make sure the statistics are generated by a good number of trades. A trader who achieved 50% gain with 500 trades is a better performer than a trader that achieved 100% return with 10 trades.
You should also make sure not to copy too many traders at once since this will increase the overall risk to your capital. If too many of the traders you copy happen to open losing positions at the same time your account may become vulnerable to big drawdowns.
Wishing you successful trading!
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