eToro Trader Statistics Explained

Trader’s performance overview is one of the first things to look at when you decide on whom to copy on eToro, as well as to assess your own trading performance over time. There are several key statistics calculated for every user and you can find a quick overview below of what they are, where to find them and how they are derived.

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(NOTE: Before we continue, we have to give a disclaimer that the trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. CFDs are complicated instruments that are never guaranteed to provide you supplemental earnings.  In fact, Around 67% of all retail investors experienced a loss while trading CFDs. Make sure to keep this in mind before attempting to use the eToro platform yourself. All the information found on this website is not official trading advice and all practices shown are referenced for the use of the Demo account only.)

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The figures for the overall performance represent the monthly returns on the equity of each trader, taken as the change in equity at the beggining and at the end of the month, accounting for any additional deposits or withdrawals on the account. The values for yearly performance take into account the effect of monthly interest compounding by taking a geometric average of monthly returns. In this way each trader is essentially treated as a separate investment fund, allowing for a simple and understandable return calculation which then faciliates comparison between different traders.

When you click on the performance button for each trader you can see the summary of results for all the time traded on the platform as well as a more detailed visual chart for the current year, as shown on the image above.

eToro derived its own formula to calculate the risk rating for each trader, which includes several factors such as the amount of leverage used for the trades overall, the volatility of assets in the traded markets, the degree of diversification and the way the total portfolio is composed. This process is now more aligned with the usual metrics of Value at Risk (VAR) used in the trading sector.

The values for the risk score range between 1 and 10, with 1 being the lowest possible and 10 the highest possible risk levels; the current risk score of a value of 4 on the image for example, shows the average of the risk score for the 7 latest trading days. An average over 7 days is taken to account for the fact that traders with too risky positions may attempt to reduce their ranking by immediately closing off the unfavorable positions, while an average gives a more realistic overview of their risk performance. The average monthly risk score value takes an arithmetic average of risks for the last 12 month of trading on the platform, showing you a history of investor’s risk taking patterns and an overview of their risk to reward patterns.

One should also consider the value of the maximum loss or markdown the total equity amount has ever underwent over a single day of trading. This could be indicative of a trader’s ability to deal with unfavorable market movements as well as their ability to minimize the potential losses.

Nothing else speaks of an investor’s performance like the trust and the feedback of the community, and that is why the current total number of copiers is made visible to others on the platform. The chart attached shows the number of copiers at any point in time over the period of the last year and there is also a figure for the new copiers who joined in the last 7 days of trading as a number and as a percentage. Note that the above figure also shows the value of the AUM range or the total monetary amount copiers have allocated to that investor; that value is given as a range of under 50,000$, between 50,000 and 100,000 $, 100,000$-300,000$ and then values above 300,000$.

An investor’s trading overview is indicative of a trader’s investment style and asset selection. You may also use it to assess whether the trader’s selection of assets matches your desired investment horizon, the preference of the industry and so on.

As for your own trading statistics in case you decide to copy another investor, the action of replicating another’s trades is regarded as a trade in itself and the statistics of the copied trader are not considered as your own so they are not included into your personal statistics calculation.

There are some additional data on the investor you might want to consider before you decide to invest your money into them, especially if you are deciding on whether they are suitable for your preferred trading style and investment horizon.

Trades per week – the number of trades per week is indicative of the level of activity of a trader and shows whether investor is focusing on short term gains (hence more trades per week) or rather long term returns.

Average holding time – this indicated for how long on average this trader hold their trades open and is likewise a direct indication of the  investment horizon.

Active since – is the date of when a trader started trading on the platform. Although that is not necessarily a promise of better results, this may be indicative of the experience of an investor.

Profitable weeks – this is the total number of weeks that have ended in profit shown as a percentage of the total number of trading weeks. This value is important in demonstrating investor’s adherence to a successful strategy and their ability to generate consistent profits.

Hopefully this article gave you an idea of how a trader’s statistics are calculated and you can now have a better understanding of how to choose who to copy or how your own performance statistics are derived. Best of luck and enjoy demo trading on the platform!

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eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.