I've got a risk score of 2 in my Portfolio!
For the fist time, my risk score has actually dropped to 2 out of 10. That's fantastic 🙂 My whole goal right now is to create a stable, low-risk copy trading portfolio, and it's working.
How has that happened?
Well, I'm copying 5 different traders, so they're all trading differently for a start. That means that they're probably not all making exactly the same trading decisions at the same time. It's lead to a much more diversified portfolio. All my eggs aren't in one basket, so it's unlikely that they'll all 'get it wrong' at the same time...
Coupled with that, they're all low risk traders themselves. So it's like having two layers of low-risk focus. There's my traders themselves, all applying good risk-management and aiming to preserve their capital primarily. They're all profitable historically, and have proven track records.
Then there's me, putting all of these low-risk guys in my portfolio, adding diversification, and applying a 15% Copy Stop Loss to each of them. All in all, it's a good system, designed to make sure that whatever money I put into eToro is going to be:
A: As safe as I can make it (they're unlikely to go on huge losing streaks).
B: Profitably used in future.
Excellent 🙂 It's the antidote to the wild ride and big swings of the boom-bust trading mentality. Let's see how it goes. My goal is still to build a portfolio which I'd be happy to add $20,000 to. That's a LOT of money for me, so I need to make as sure as possible that it'd be safe. My nerves just couldn't handle it any other way...
How's the Portfolio Doing?
Citadelpoint is still in the lead!
Citadelpoint continues to dominate the winning in my portfolio, making profits like there's no tomorrow. He's cutting off losers early, taking the profits well from the winners, and doing it regularly. He's like a money-making machine right now, with lots of incremental wins.
His risk profile is still higher than I'm aiming for in my portfolio, and I've drawn down how much I'm copying him with. I hope, however, that he does keep trading safely, as it'd be a major shame to lose him as one of my traders.
He's been talking about possibly becoming part of the Popular Investor program on eToro, which would be great, but we'll see if that works out. I believe he works in the finance industry so it might depend on what his employers say really...
Joining the PI program would restrict his trading in certain ways - lower leverage allowed, smaller trade sizes encouraged. He might not want those things, but they'd certainly be welcome for me as a copier, as it would reduce his risk profile significantly. We'll see what happens...
Chocowin my equities trader
Chocowin has also been doing very well lately. He recently stopped all of his trades and added a lot more money to his account. It was because of the Popular Investor program - he just levelled-up from 'Rising Star' to 'Champion' level investor.
The popular Investor program requires you to have a certain amount of money in your own trading account to get up to the next level, so Chocowin closed all of his trades, added the required money, and started trading again so we all have clean copies of him.
I've been trying to reduce the amount of my portfolio copying Chocowin too, due to his higher risk profile. So far, I've taken $30 of profit which he's made me, and added it to my lower risk traders. He's just been doing very well. Between him and Citadelpoint, I've removed $80 from their copies so far and added it to the other guys. It might not sound much, but as a proportion of the $200 I'm copying each of them with, it's a lot.
How's Alnayef Doing?
About the same really. At this point, though, some of his open trades have started to move in the right direction. It's a good sign, but I'm still really concerned about how long he's keeping his losing trades open. It's great to be patient, but the fees just keep getting higher and it's starting to really eat into the profits he's made. He's still got trades open from November of last year...
The 'New Guy' Berrau - how's he trading?
He's currently up over 1%, and trading very well. There have been some scary moments where he opened a trade which quickly turned against him. He managed it well though, opening sells in the same asset to stop the losses. It came out well in the end with the winning sell trades covering the losing buy trades and he's ended up in profit. It's good to see that someone knows what to do when things turn against them.
They say that even the best traders only pick the right trades 50% of the time. The skill, apparently, is in knowing how to cut off the losers fast and let the winners run. He seems to be able to do that so far, which is great to see.
Olivier Danvel - still consistent risk-managed trading?
Yup. Slowly and steadily winning trades. There are big waiting periods where he waits for the right entry points for new trades, but that's great. It fits with the plan... I'm happy to just sit back and let him trade.
What's my next move for the portfolio?
I might add a new person when I get more money to rebalance the portfolio further and reduce my exposure to the riskier guys. I have to wait until I have more money to do that though. I'll definitely be copying Harshsmith, but I'll need an extra $460 to do that, which might take a while. Hopefully not too long 🙂
I'm in the process of making some videos where I interview top traders on eToro, asking them all the same questions... I am currently trying to get in touch with some of the big names on the site. If you know any of the traders who I mention at the end of the video, please let me know, or let them know I'm trying to get in touch 🙂