Portfolio review 10.09.2016

Today I reviewed my portfolio to check on my overall performance so far. I figured that I had 25.9% of my equity invested in CopyTrading, 39,6% in open trades and 34,5% currently not invested. I also checked on my gains so far:

CopyTrading:    +1,64%
ManualTrading: -0,99%

Looks like I am better in picking people for CopyTrading than to trade on my own. An additional motivation to continue working on my trading strategy (check what happened so far here). It is also obvious that I need to keep a higher ratio of my equity invested, for a better overall performance. Based on the figures I decided to work on my CopyTrading portfolio.

Notes on CopyTrading

When choosing the first trader for my CopyTrading portfolio (link to corresponding post) I neglected a rather important aspect: eToro allows you to copy a trader with only $100. Copying means all trades are copied in the same ratio in your portfolio except trades with a volume of less than $1. The table below shows the effect on the copied trades for an example portfolio of a trader. I assumed that the trader has an equity of $15.130 and invests in several stocks, commodities and indices with one trade each. If a copier invests $100 to copy the trader, not all the trades are copied.



Some traders also recommend a reasonable amount for copying. I personally believe that losing some small trades is not crucial for the overall performance. However, if the trader has a huge equity and thus a lot of trades, or a lot of small trades, the copying performance can suffer significantly. Therefore it is important to thoroughly check the trades sizes on the portfolio of a trader before copying.

Portfolio Changes

As result of my Portfolio review I doubled my investment on all Traders in my CopyTrading portfolio. I thought about only investing in the profitable ones first. But during the week the ranks changed nearly on a daily basis, so I decided to give them all a little more time, before rearranging my portfolio. Here is the performance of my portfolio so far:



My overall equity is now distributed as shown on the chart below.