Kenneth Mowat is a very sensible trader. Although his profits are not huge, he is incredibly consistent and very low risk.
Dietmar Roast is the highest risk trader I follow. But look at the phenomenal profit and you see why I want to take the risk. I suspect 2016 may be a bit of a freak one off, but nonetheless, a profit of 600% is hard to ignore. Normally a trader with that high a profit is just a gambler about to lose his money at any moment, however Dietmar actually has a long string of profitable months. If you look below, his yearly draw down is nearly 75%. Usually that would set off all the red flags for me, but considering Dietmar has profited 3 years in a row I'm willing to take the risk on the basis that my other traders can cover my losses if Dietmar has just been extremely lucky so far.
Bernhard Rauch is arguably the lowest risk of the traders in my higher risk strategy. With yearly profits of at least 50%, $200 would become $300 in just one year with Bernhard Rauch. When researching higher risk traders, it is vital you consider yearly draw down (see image below). What you want to avoid is a trader that has come close to losing all their money in the past. Sure, they may have made some huge profits but they are riding their luck it is just a matter of time before they lose it all.
The traders below carry a higher risk. This strategy is more exciting and can potentially return some large profits. However, the chance of these traders losing all their invested money is a lot higher. To try counter this, the more higher risk traders you follow the better. This is because when one of the traders does lose all of their investment, your profits from the other traders you copy will more than cover the losses you. For example, you have $200 invested into 5 traders, so $1000 invested in total. Over the course of the year, four of your traders make you $50 profit each, however one trader loses all his money. Luckily for you, you set a stop loss of 40%. This means you have lost $80 of the $200 you invested in that trader, but because the other 4 traders made you $50 profit each, you have still gained $120. For the higher risk strategy you should set a higher stop loss, I recommend 40%. This is because these traders have much larger up swings and down swings, you need to allow for the larger down swings to keep you in the game in the hope that a big upswing is to come. With that said, you still need a point where you are willing to cut the trader loose because the risks are getting too big in the hope of a profitable return.
David Kowalski has a history going way back into 2013 showing he has been profitable over a long period of time. Some days he doesn't trade, which either shows he is very cautious, or occasionally takes a vacation!
On the face of it, nextleft is making impressive profits. But a very quick look at the profile shows that actually, nextleft had one lucky month and has been hemorrhaging money since!
Sebastian Oliver benz boasts a very impressive profile - large profits and only small losses. I think perhaps another 6 months trading will create a better picture, he certainly has a large following.
This is my favourite trader. He is similar to Kenneth Mowat - consistent small profits. With a trading history going back to 2013 Alberto Bosio is very low risk. 2013 was a negative year for Alberto but he was just starting out on Etoro at that time, so really the fact the first year was negative is not relevant anymore as he was inexperienced at the time.
It is important not to just copy a trader because they have a lot of copiers, often when you study closer you find some misleading statistics that have led to a herd mentality. An example of this is profitable days. 90 out of the last 100 days may have been profitable, however they could still be running up big losses if profits are small and the few losses they have are very big. Every week I spend many hours researching traders and changing who I copy. There are two main methods of trading I have been successful with, what I consider a low risk strategy and a higher risk strategy.
Low Risk Strategy
The traders in the low risk strategy below are great for make consistent small profits. I recommend a stop loss of 15% for the low risk strategy, as losses greater than this are rare for these types of traders, so when it does happen we cannot be sure how they will react.
Remember what I said at the beginning about lots of copiers creating a herd mentality? Here is a great example. Julio Fernandex has of copiers but only has a few of OK profits in the last few months, which were preceded by huge losses (see below).
Higher Risk Strategy
Who not to copy
Below are just a couple of examples of the types of traders you want to stay well clear of. There are some traders with an outrageously high profit, but there is always a trick being played by the trader. These kinds of profits are never sustainable and you are essentially dealing with gamblers not traders.
One final thing from me. Don't be afraid to drop a trader who has performed well for you in the past but has started to lose you a lot of money. Equally though, don't be too quick to drop a trader the second they have a bad day! Use a bit of judgement and common sense.. and don't forget you can contact me if you want a second opinion!
Hagayke seems to go under a few peoples radars. Etoro gives Hagayke a risk rating of 4 which still falls into the low category but there is a potential for the occasional moderate loss so think carefully of what you set your stop loss at.
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