It's time to review another trader on eToro. With so many traders on the platform, it can be a bit overwhelming for newbies to filter and find the right kind of traders to copy. So i've been rounding up interesting traders on etoro to help you find people to copytrade.
When you copy trade, you automatically copy the trades of a more experienced, and and (hopefully) profitable trader. When you copy trade multiple people, you'll diversify your portfolio and spread the risk, yet you'll still be able to see impressive returns.
Today I'm reviewing DrGreenFingers (how do people come up with these usernames ;p ). He trades mainly commodities.
Return on Investment
DrGreenFingers has been trading on eToro for only 12 months. I usually only review traders who have a year or more of data to analyse and this trader just scrapes in. I always recommend only copying traders who have been trading for a while. It's quite easy to have a a month or two of flukes. The hard part is generating consistent returns.
In 2016 Ben generated a very impressive 60% return. And in 2017 he has seen a much more modest 7.8% return so far. I'm encouraged by the fact that he hasn't had any months in the red.
DrGreenFingers is primarily a commodities trader, although he also opens the odd forex trade. Commodities are high risk investments as they can move with a lot of volatility, but this trader has a low risk score – currently of just 1 (the lowest possible score). This means he's trading with a small amount of leverage and using a small % of his capital to open each trade. Effectively the risk is being spread across a lot of trades.
One thing I've noticed is that he's not afraid to close a losing position. Many traders only wait until a position is profitable. Unfortunately, this sometimes never happens and you end up just digging a deeper and deeper hole.
To make this strategy work, you need to open a lot of trades. And with 18 trades on average per week, that is on the high end of the scale for etoro traders. The average holding time is just 1 day.
I think it might be too soon to add DrGreenFingers to my portfolio, but he is definitely someone to watch – especially if you are looking to add a commodities trader to your portfolio.