When navigating the eToro social trading platform, understanding trader statistics is crucial for evaluating potential traders to copy and assessing your own performance. In this article, we’ll dissect eToro trader statistics and explain how they’re calculated.
Key Takeaways
βTrader statistics are essential for evaluating potential traders to copy and assessing your own performance. |
βeToro calculates various statistics, including overall performance, risk rating, number of copiers, and trade overview. |
βUnderstanding these statistics can help you make informed decisions when using the eToro platform. |
Understanding eToro Trader Statistics
Table of content
- Understanding eToro Trader Statistics
- π Overall Performance
- π₯ Risk Rating
- π₯ Number of Copiers
- π Trade Overview
- π Additional Statistics
- Wrapping Up
- eToro CopyTrading: β’ Learn more about eToro CopyTradingπ
- CopyTrading Basics:
- CopyTrading Strategies & Tips:
- CopyTrading Success & Investment:
- CopyTrader Tips & Strategies:
- Portfolio Building & CopyTraders:
- Best eToro CopyTraders & Followers:
- Diversified Investment & CopyPortfolios:
- Top Strategies & Learning from CopyTraders:
- GENERAL RISK WARNING
- Author & Expert Trader - Financial Analyst :
Below, we provide a comprehensive overview of the key trader statistics on eToro and explain how they’re derived.
π Overall Performance
Overall performance is a crucial metric when comparing traders or evaluating your own trading performance. The monthly performance represents the monthly return on equity, considering the change in equity at the beginning and end of the month, as well as any deposits or withdrawals. The yearly performance accounts for the effect of monthly interest compounding by calculating a geometric average of monthly returns. This approach treats each trader as a separate investment fund, enabling simple comparisons.
π Note: Past performance is not an indication of future results.
π₯ Risk Rating
eToro uses its own formula to calculate each trader’s risk rating, incorporating factors such as leverage, asset volatility, diversification, and portfolio composition. The risk rating aligns with the Value at Risk (VAR) metric commonly used in the trading sector.
The risk score ranges from 1 (Lowest) to 10 (Highest). The current risk score averages the scores from the last seven trading days, while the average monthly risk score calculates an arithmetic average of the past 12 months. This information provides insight into a trader’s risk-taking patterns and risk-to-reward balance.
π Note: Past performance is not an indication of future results.
π₯ Number of Copiers
As a social platform, eToro relies on community feedback and communication. A trader’s total number of copiers reflects their success and trustworthiness within the community. The platform displays the number of copiers over the past year and the new copiers who joined in the last seven days (as a number and percentage).
π Note: Past performance is not an indication of future results.
π Trade Overview
The trade overview section summarizes a trader’s activity over the past year, including key statistics such as average profit and losses, profitability rate, and asset distribution. This information can help you assess whether a trader’s investment style and asset selection align with your preferences.
π Note: Past performance is not an indication of future results.
π Additional Statistics
Before investing in a trader, consider some additional data to determine whether they align with your preferred trading style and investment horizon.
π Note: Past performance is not an indication of future results.
- Trades per week β This metric indicates a trader’s level of activity and whether they focus on short-term gains (more trades per week) or long-term returns.
- Average holding time β This figure reveals how long a trader typically keeps their trades open and indicates their investment horizon.
- Active since β This date signifies when a trader started trading on the platform. While not a guarantee of better results, it can indicate the trader’s experience level.
- Profitable weeks β This percentage represents the number of profitable weeks compared to the total trading weeks. It demonstrates a trader’s adherence to a successful strategy and ability to generate consistent profits.
Wrapping Up
Now that you have a comprehensive understanding of eToro trader statistics, you’re better equipped to evaluate potential traders to copy and assess your own performance on the platform. Use these insights to make informed decisions and enhance your trading experience. Best of luck and enjoy trading on eToro!