Ayondo Tips: Find Best Top Traders
There’s a pretty large choice of Top Traders on ayondo which you can follow (> 1,200). Since their trades will be automatically copied in your account, selecting the right traders is key to your success. These tips should hopefully help you a little bit with finding ayondo traders which match your own risk profile (i.e. not everyone looks for the same type of traders). Here’s the latest ayondo Top Trader Rankings List.
Here are the main things we look at when evaluating and selecting Top Traders to follow on ayondo:
- It’s often easier to start by ranking the traders by number of followers (especially if you’re new). Over time the best traders will “normally” end up with the most followers, though that doesn’t mean there aren’t any Top Traders with less followers who may be worthwhile for your portfolio. Please note that the number of followers displayed by ayondo includes both live and demo account followers.
- The little graphs in the ‘Rankings List’ are an indicator of the overall performance. We prefer to look for traders who’s profit graph is fairly gradual instead of very erratic.
- Evaluate the profits in terms of risk (drawdown & volatility). While excessive returns (>100% per year or even per month) are something we all want, these normally come with the risk that your account will be blown as well.
- The ayondo career level is also a good indicator to quickly evaluate Top Traders since it takes into account both performance AND risk. It’s also continuously monitored, so traders will drop a level if they don’t meet ayondo’s guidelines.
- Consider the length the Top Trader has been trading on ayondo. The longer the better since you have more data to analyse and the trader has proven themselves over a much longer period (i.e. the went through many different market cycles).
- It’s always easier to trust top traders who risk their own money, and on ayondo these are marked with the ‘real money trader badge’ . Please note though that you don’t know how much they risk because the balance is not shared. The minimum balance they need to get the ‘real money badge’ is 500 EUR or 500 GBP.
- While following someone risking their own money should normally provide more protection against the risk that they blow their full account, please note that Top Traders with many live followers also have a lot to lose in terms of commission revenues from ayondo. Some of them make much more per month in commission than the 500 Euro minimum account balance (i.e. don’t fully discard traders with demo accounts).
- Use ayondo’s “Detailed Search” feature to filter through the list of Top Traders, using values for the parameters which match your risk profile. Try and get down to a maximum list of 10 which you then further evaluate and compare.
- When using the risk measurements such as the MAR and sharp ratios, please note that these values are calculated for each trader since inception. E.g. when comparing the MAR ratio of a trader who’s been trading on ayondo for 6 months with one who’s been trading 3 years, if both are the same, consider that the second trader has traded through many more trade cycles, while the first one may have been trading only in favourable market conditions.
- When comparing profit % between Top Traders, make sure you do this over the same trading period.
- Before following a trader, try to make sure you see if they have any (or many) current open trades. It’s always much better to start following a trader when they don’t have open trades since your performance will be in sync and match the trader’s. For example, if a trader already has a number of positions open, their next trades may involve hedging against those trades. Since you don’t have these original trades open, it may not be ideal for you to follow those new trades.
With a live account it’s easy to view the current open trades in ayondo, but with a demo account it isn’t straight-forward, though there’s a workaround. From a demo account create a portfolio and then look at “My Watchlist”. This will display all current open trades for the traders you added to the demo portfolio.
- Try and avoid following traders who use Martingale type strategies. They involve opening up incremental positions in the same direction in the hope the market eventually turns. A bit like betting each roulette spin on black in the casino in the hope black eventually comes up. Unfortunately, eventually you’ll run out of capital to keep on doubling up and these strategies normally end up with losing their full account value in the long run. You can look through the historical trades and current open trades to try and spot those type of strategies.
- Consider the mix of instruments a trader has traded on ayondo in the past. Most professional day traders specialise in either currencies or stocks or commodities. However, some longer term traders may focus on a wider range of instruments to spread the risk and potentially hedge their overall positions. It always helps if the trader trades instruments you’re a little bit familiar with yourself.