Copy Trading Experiment
I haven't taken any trades this week until this day. My day job just demanded so much of my time these past few days that I chose to rest during my free time instead of closely monitoring charts.
Right now, let me just discuss my plan to experiment on my investments (I really love doing this one haha).
For the past months, I have been thinking about doing copy trading. If you are not familiar with it, Copy trading enables traders to automatically copy the trade positions of a "master trader". This isn't limited to currency trading alone. You can copy all the trade positions of a "master trader" in various markets may it be stocks, crypto, or forex -- in a single account. It is possible through copy trading sites like Etoro.
I am currently looking for master traders who have a good risk to reward ratio. Preferably someone who has lesser maximum equity drawdown and higher rewards.
Take a look at this profile for example:
As what you can see, this profile has an overall positive performance since January. If I have copied this trader at the start of the year, my account would have gained 32.01%! As I've said, I have been observing traders with good performance lately and this is one of those.
Now, let's see this trader's risk profile:
This trader has an average risk score of 3 (out of 10 as max). I have seen a lot of trader profiles having decent profits but failed on the risk management part. But this particular trader took it nice and slow.
If you're wondering why I am looking for other traders to "copy", the title speaks for my reason.
I have been trading forex since March this year. As what I shared in my previous trading journal blogs, I have my fair share of losing and winning trades. Until now, I am still establishing my trading strategy. Copy-trading lets me earn passively on the side while perfecting my strategy.
More than that, I want to examine how "master traders" do their trades. Traders' profiles in Etoro are transparent. You can see the traders' performance as well as their trade positions. So I think it is a good idea to learn while earning.
I just got my Etoro account verified yesterday. I haven't funded my account yet but I want to start with $200 and see how much it could go at the end of this year. I will be posting updates of this copy trading journey later.
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