Note – This post doesn't apply to US customers
Are you looking to start copy trading on eToro? But not sure who you should be copying? I regular review people who I think might be good for copy trading. Remember to always do your own research.
In this post I'm going to be reviewing french forex trader OlivierDanvel. But first a little bit about what copytrading is:
So what is copytrading?
Copy Trading is where your trading account automatically copies the same trades made by a more experienced trader. When their account opens a trade, your account opens the same trade. When they close a trade, your account does too. Trades are opened use the same capital proportions. So if a trader uses 5% of their account capital to make a trade, 5% of the funds you allocated to copytrade a trader will be used.
The great thing about copytrading is that if a trader makes a 20% gain over the year, your account too will make a 20% gain. It's a great way to learn about trading and investing while potentially profiting at the same time.
Olivier is a french forex trader. What's most notable about his account is that ever since he has started trading on eToro he has managed to return a profit each month. I don't think I've seen this level of consistency.
As you can see his results are really impressive. Personally what I love about his trading style is that he shows a lot of conviction with his trades. His winning trades often win big. And he cuts the losing trades so they don't deal too much damage. This is a sign of a good trader.
The average trade length is 6 days. This means you're not going to have to worry about your funds being locked up in trades for months on end. Best of all, he has a risk score of just 2. This is right about where it should be. This means he's using appropriate trade sizes, leverage and trading slightly less volatile markets.
Disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
How much money do you need to start CopyTrading
You need to deposit at least $200 to CopyTrade on eToro. Any smaller amount and the copied trade sizes would be way too small. Remember the trader you are copying most likely has an account with 10s of thousands if not hundreds of thousands of dollars in it. When a trader makes a trade with, lets say 5% of their account capital, the same trade will be made with 5% of the $200 you're copying with.
Olivier has recommend copying with at least $500 for best results. So if you're looking to copy him thats how much I would consider depositing.
Test out CopyTrading
If you're not ready to drop $200 on an investment on eToro, you can still try out copytrading. When you sign up to eToro, you're given $100k in virtual money. You can use this to open trades on your own and try out copytrading. That way you can see how it all works, and get a rough idea of how profitable it could be (remember past performance doesn't guarantee future results).
Take a look at this post for more people you can copy on eToro in 2019