The Science/Art of Evaluating: What To Look Out For When Selecting a Trader

9:09 AM

How do you choose who to invest with? There are so many ways people to copy. The worse thing i can see if when people copy the most popular trader and go with it. People, it doesn't work 95% of the time.

So here's i have my broad strokes suggested methodology and you can view my individual evaluations of each trader.

My default assumption is that you are a high risk, high return investor. Reason being, FX is of that nature. if you are looking for steady returns please turn the page now. High return low risk rarely exists. 

1) Portfolio - i am looking for FX or ETFs, not a large allocation of stocks. i have a different evaluation methods for stocks, so i try not to touch stocks on etoro.

2) Average return and loss - I like seeing discipline in traders, regardless of strategy, discipline prevents you from losing massive amounts in the market. 

3) Historical trades - The historical trades can tell you a lot about a trader. In fact some are very good in being active on their pages. But i generally do not like traders who average down, i.e. load up on a losing position in hope the market will move in their favour. While i find it works, the worst case scenario is continuous loading and you could lose everything especially in the absolute events.  

An example of what I suspect is averaging down

4) Returns per month against the NIC index - the NIC index is something i came up with and you can read about it here

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