It’s been a few months since starting the copytrader experiment, and what with the festive season and one thing and another there hasn’t been a lot going in terms of writing/action, however, this is a good thing.
I’ve sat back and apart from the occasional peek at my account, have taken no action whatsoever. The only action I have taken is joined the Traders Challenge, the reason for this being that it put my demo account back to $10K, and it allowed ‘Over Weekend’ trades to be executed (they are closed over weekend if you don’t join the challenge, or don’t trade with real money).
And below, is a screenshot of my account. If you add the ‘account balance’ to the ‘current investment’, you get where my trades have got me over the past 7/8 weeks (add ‘account balance’ to ‘current investment’ to get the profit – subject to potential for the current open trades crashing of course).
The profit is around the ten percent mark. 170 bucks on what was initially an investment of $1700 (the investment has decreased as one of the traders I’m copying took a couple of smallish losses).
Obviously, the good news is that the account is in profit. But $170 over two months is not exactly earth shattering is? OR IS IT?. The whole idea of this copytrader experiment was to see how far I could get with an investment of around $1700, which is why I’m not using the full 10K available.
10% profit over 8 weeks is not bad going at all, particularly as my strategy has been a low risk one (an approach I intend to stick to for the time being). Even though this is not real money, they are real results based on real trades, and I intend to ensure that my strategy/ies are backed up with experience before allocating real money to trading.
One issue that i had is with the term ‘investment’, that has connotations that are distinct from those associated with the term gambling. However, this is merely linguistic ‘play’. Forex trading does have risks, you can get wiped out if you are not careful, but the same can be said of the majority of ‘investment opportunities out there. In short whereas previously I’d have balked at the idea of considering Forex trading an investment, I’m beginning to think that this is not the case.
So, if we take on board the arguable inaccuracy of the distinction between trading and investing, IMO, I have made a good investment (albeit a virtual one – to date). If I had fully utilized the 10K available, the 10% profit would at 1.7k have been worthy of note, and arguably have been a step in the right direction for this experiment.
My strategy to date has been to select the traders with the Highest Win percentage. I haven’t yet experimented with riskier trading strategies (I’m not sure if you can call copytrading processes trading strategies, however, it’s the trading platform, and it is a strategy, so…). However, I do intend to try a higher risk strategy with an alternate account very soon, and will publish the results here.
In the meantime, if you want try out CopyTrader for yourself, check out the Demo Account. Back v.soon.