Best eToro Traders to Follow and Copy
(updated October 2019)
eToro CopyTrader System remains one of the most popular platforms, providing social trading to millions of users across the globe. Although the platform itself is user-friendly and simple-to-understand, the nature of the financial markets implies a certain number of underwater rocks hence the process of choosing the best traders to follow on eToro requires in-depth research and analysis. We decided to share our experience and write an article aimed to help you with this rough path to long-term profitability.
Before diving deep, we’d recommend every investor to formulate own strategy based on several key targets. Answering a short list of simple questions would help a lot. Are you interested in a short-term large-volume haul, looking to double-up your trading account, grab your money and run away, or are you seeking stable and growing secondary income based on long-term perspective? How much money can you afford investing in someone’s decision-making process? Are you willing to withdraw weekly or monthly profits, or do you want to build up your trading account and become a professional investor in the social trading field?
The efficient choice of best eToro traders depends on all of those factors above. Please note though that those questions are included here for educational purposes only to show how you can use the data available on eToro to create an opinion of a trader. These do not constitute financial advice and the inclusion in our best eToro traders list should not be seen as an endorsement. What’s best or top will depend on your own investment goals which you should discuss with your financial advisor.
One of the first things to watch in trader’s statistics is the asset class he’s trading on. eToro offers a wide variety of asset classes to trade via CFDs (Contracts For Difference) including stock indices, company shares, commodities, currency pairs and cryptocurrencies. All of those asset classes have different features and performances. For example, shares are lucrative in terms of potential profits they can bring, but they are vulnerable to higher volatility, sudden reversals and price whipsaws. Currency pairs have different trading volume in the Foreign Exchange market, and that makes them more or less predictable and profitable. That all has an impact on traders’ performance, risk/profit ratio and depth of possible drawdowns. It’s recommended to identify the asset class most suitable for your own trading strategy before making the final choice of best traders to follow on eToro. A real trading Guru is usually an expert in a tight range of assets. It’s also worth noticing that eToro USA is focusing on cryptocurrencies only due to strict SEC regulations. The platform will look different for US citizens, but still, they can choose the best crypto traders on eToro.
Choosing traders to copy on eToro suiting your trading strategy
Let’s move onto the platform as we prefer the approach of learning by doing. Below is the image which shows the platform’s main page. You need to click ‘Copy People’ in the right section of the menu. You will see the following picture:
The next step is to make sure that you’re choosing traders with real money experience. Those traders who practise on a demo account do not really care about the overall result. The red arrow on the screenshot below points to the section where you can switch to real from demo account. A list of traders appears in the centre of the screen. You may find there editors’ choice, top investors, trending users and most copied traders. There is also an option of a quick search with several key filters such as country of residence, type of the market to invest in, traders’ overall gain and the performance period. But the most effective way of choosing the best eToro traders is to click on the advanced search button, which is placed in the right upper corner of the screen.
The advanced search section has a pop-up menu of filters as the screenshot below shows. We would focus on these filters in details to explain several factors influencing the search.
Time period. This filter has quite a large number of options. Investors can monitor traders’ performance in different periods ranging from 1 month to 2 years. We would leave the default choice of 12 months as this is the period reflecting the complete cycle in trading. Market conditions can be different throughout a year, seasonal factors traditionally influence traders’ activity, while different asset classes usually change trends within one year. Therefore, 12 months would show how flexible the trader is in adapting his trading strategy to different market conditions. Shorter periods can show a trader’s ability to maximize profits during a successful series of deals and to minimize losses in unfavourable circumstances.
Status. The verified trader is a usual eToro client, while the Popular Investor takes part in special eToro’s program to increase earnings from being copied by others. The Popular Investor Program deserves a separate article to describe all of the benefits traders can get of it.
Country. You may choose any particular country from a huge list.
Name and Picture. Some traders use nicknames instead of full names and some profiles do not have a picture. That’s a trust question mainly but it’s understood that if a trader wants to go social, a full profile has to be provided.
Copiers. This is the filter showing the total number of users who do the copy action. Three ranges are available here: low (5-100), medium (100-500) and high (over 500). In our opinion, that’s not the most crucial factor when choosing eToro best traders to copy.
Copiers Change shows whether a trader is trending in terms of the overall number of copiers joining his trading strategy or do eToro social investors avoid the guy. The period is 7-days change. The change of 10-20% is considered as low, 50-100% is medium, while the addition of more than 100% copiers in 7 days is high. A custom range can be set as well.
Copy AUM. That’s the parameter used in the calculation of additional payouts of the Popular Investor Program. It counts annual traders’ assets under management or the total amount other traders allocated to copy. The more AUM is, the more reliable and trustful the trader becomes.
Return. This is the first part of a trader’s performance. It shows the percentage of the profit compared to the initial amount in the period chosen above. For example, a trader with 10% return made a net profit of $100 out of $1000 of the initial account in 12 months. You may choose default ranges (the low range is 0-10%, the medium is 10-50%, high is over 50%) or set your own range of the return you’d like to target. We’d choose a range of 25-60% of the yearly return.
Profitable months. The percentage of profitable months points to the long-term performance of a trader. It’s recommended to leave the default setting of more than 50% as it’s hard to achieve a percentage close to 100% due to different market conditions.
Profitable trades. This parameter shows the percentage of positions in money compared to the total number of deals opened. We would not recommend looking at traders with a too high percentage as the likelihood of a potential losing streak is getting higher for those traders who did not experience losses for quite a while. We’d focus on a range of 75-90% of beneficial deals, which is quite a powerful indicator of a trader’s stable performance.
Risk Score indicates how strict a trader is in his risk management rules. The most conservative trader has a risk score of 1, while a more aggressive trading approach would deserve risk score 6.
Daily Drawdown is probably one of the most crucial indicators to assess a trader’s strategy and discipline. Sometimes traders do not admit mistakes and hold positions for too long, allowing current losses to grow. Although the eToro CopyTrade System works in a proportional way of opening deals, a too deep daily drawdown represents a much greater risk to get a negative result.
Weekly Drawdown is the same as Daily Drawdown but it has a longer cycle.
Allocation allows you separating traders by exact asset class they trade on. For instance, you may pick the best forex traders eToro has in the list if you click Currencies.
Average Trade Size is related to money management. If a trader opens deals with a too large volume compared to the account balance, that puts his trading at risk like putting all eggs in one basket. At the same time, a trader, who keeps the Average Trade Size at a low level, is more flexible and his total performance does not depend on one single deal. We recommend selecting the lowest range of 0-3%.
Active Weeks and Trades filters show the frequency of a trader’s entries into the market.
Our selection of best eToro traders worldwide
After you clarified all search preferences and clicked Apply button, you’ll get a list of traders matching your criteria (look the screenshot below). Traders with a star in the profile picture are among the most popular investors in eToro, and the colour of that star shows the AUM range of any particular trader. Traders with a green star on the profile picture have more than $500K allocated for management, so they should have the highest priority when choosing best traders on eToro. The red star points to AUM more than $150K, the yellow star indicates AUM above $40K and traders profiles marked with the blue start have the very initial level.
Once you clicked a trader’s profile, you’ll get to his page with detailed statistics including all of the data described above, traders’ feed and portfolio, which shows running deals in progress. We strongly recommend switching to the trader’s history in order to analyse his previous deals and understand the trading strategy. In addition, some of the most crucial decisions could be checked on historical charts in order to make a conclusion before investing real funds.
We have picked several traders to be considered by investors. As you may probably know, that’s not an easy task to keep up with good traders on any platform as things change rapidly in the financial markets. Every trader experienced a period when things go well, especially when catching a strong trend. However, it’s hard to stay on the top of the wave forever. Therefore, we decided to base our choice on conservative rules suitable for traders without too much experience. A step-by-step learning process is the most effective approach for beginners, hence we tried to select the best eToro traders with the lowest risk score.
Best eToro traders to follow – MarianoPardo
Although Mariano has a comparatively weak 12-months return of 12.50%, the number of his followers is tremendous – 2334 copiers at the time of writing this article. That number grew 1.70% in the last 7 days and the green star in his profile points to sustainable popularity. Mariano trades on stocks only, which explains his risk score of 5 points. Google, Apple and Netflix are among his favourite shares, while the average profit/loss ratio is quite impressive. He executes 5.89 trades per week on average but he uses the buy-and-hold trading strategy, which is shown by the average holding time of 6.5 months. This trading approach is not suitable for everyone, despite the comprehensive percentage of profitable deals (79.76%) and profitable weeks (51.40%).
Best eToro traders to follow – berrau
Bernhard Rauch is a German trader with 15.36% yearly return and risk score of 4. He seems to be quite a conservative trader with a low level of daily and weekly drawdown (-2.61% and -3.62% respectively). The vast majority of Bernhard’s trades are in the foreign exchange market (95.37%), but cryptocurrencies appear in his portfolio as well (4.63%). The best-performing currency pair is AUDUSD which is a comparatively slow-moving asset in the FX market. Bernhard closed 87.28% of positions in money on Aussie. That’s quite impressive, even though the average loss (-17.77%) exceeds the level of average profit (+7.48%). berrau is also a popular investor, having 1098 copiers with the overall AMU of more than $500K. He opens 2.08 trades per week, the average holding time is 65 days, which makes berrau one of the best day traders eToro has.
Best eToro traders to follow – kela-leo
kela-Leo is the most conservative trader in our list as his risk level is 3. His monthly performance is continually growing in 2019, 12-months return is 11.35%. The number of his copiers is rose 3.67% last seven days, reaching an impressive figure of 784. This Chinese trader is one of the best traders eToro can offer as the split of his preferred assets reflects the FX market: 66.84% of currencies and 32.93% of commodities. The level of daily (-3.21%) and weekly (-5.71%) is affordable given the market volatility, 86.06% of profitable positions is an outstanding result. kela-Loe is quite an active trader, opening 7.25 traders per week, holding them for 4.5 days on average. The most frequently traded assets are gold (137 trades, 88.32% profitable) and GBPUSD (84 trades, 75% profitable). The only concern is kela-Leo’s profit/loss ratio for those assets. But that issue can be solved by an additional rule in Copy Stop-Loss (CSL) feature provided by eToro.
Best eToro traders to follow – jianchengxu
Although this Chinese trader has a tough-to-pronounce nickname, 1525 copiers follow her on eToro with AUM more than $1M. jianchengxu’s average risk score is 4, maximum drawdown does not exceed acceptable levels (-3.88% daily and -6.71% weekly). Her 12-month return is 20.94%. jianchengxu is one of the best eToro traders in our list in terms of activity as she opens 61 deals per week on average. However, the fact that the range of assets is too wide, in our opinion, and the average percentage of profitable deals is only 62.88%, makes us considering rather a small amount of investment in this particular trader.
Best eToro traders to follow – petas11
An impressive year-to-date return of 36.75% puts petas11 on the top of our list in the scope of profitability. Luis Carlos has the track record of more than 5 years, and he is the most loyal eToro clients in our list. petas11 experienced a rough path of learning-by-doing, facing a couple of ugly years in terms of losses previously. However, his latest results indicate that the lesson has been learned. That’s the most valuable experience a trader can get. Although petas11′ maximum daily and weekly drawdown are quite deep (-4.29% and -7.83%), his average number of profitable deals is great (92.91%), while the profit/risk ratio is excellent (5.68% average Profit and 3.60% average Loss). What’s really important for risk management, is that petas11 is focusing on currency pairs with the lowest volatility in the FX market: EURUSD and EURGBP. Moreover, both currency pairs are the most technically correct assets, hence the most predictable. More than 43% of Luis Carlos’ trades were made on these pairs, while GBPCAD cross-rate has 100% positions in money. petas11 opens trades quite rarely though – only 2.23 deals per week on average.