(-0.46 %)

  • Total Return YTD

    Daily change

    +38.26 %

    (-1.80 %)

  • Total Return YTD

    Daily change

    +16.93 %

    (-0.75 %)

  • Total Return YTD

    Daily change

    +7.13 %

    (-0.61 %)

  • Total Return YTD

    Daily change

    +7.82 %

    (-1.17 %)

  • Total Return YTD

    Daily change

    +11.12 %

    (-0.35 %)

  • Total Return YTD

    Daily change

    +11.63 %

    (-0.30 %)

  • Total Return YTD

    Daily change

    +18.29 %

    (-1.02 %)

  • Total Return YTD

    Daily change

    +1.36 %

    (0.00 %)

  • Total Return YTD

    Daily change

    +14.08 %

    (-0.34 %)

  • Total Return YTD

    Daily change

    +10.33 %

    (+1.31 %)


How to earn passive income for traders with copy trading

How to earn passive income for traders with copy trading.

How can I start a trading business? This is one of the most common questions asked by traders. The modern world has stepped into the era of digitalization and new social models of interaction. Assets management has also become more active in our daily life through the expansion of social trading and investment opportunities. We are used to considering investments as a source of passive income, but if you really trade successfully and efficiently, then investments for you can also become a source of additional income from providing the opportunity to copy your trades. Basically, anyone can create their own mini hedge fund and offer services to replicate their trades in exact proportions like a manager's portfolio or a master account.

The manager (holder of master account) makes trades on his account, and they are automatically and proportionally repeated on the account of the one who copies his trade. It is important that the repetition occurs only in the prescribed proportion. The master account owner can describe in great detail the principles of master account management. He/she provides all the essential information about how the trading process going to work and what strategy going to be used in asset allocation. What is the share of cryptocurrencies, forex pairs, and other important information that may indicate the degree of risk of the portfolio in the structure of his portfolio?

There are traders on the Etoro platform who specialize in specific segments of the financial market, and they indicate this information in their profile. Specialization can be by industry. So, someone promotes their portfolios as exclusively investing in IT companies, green energy, or traditional energy sources based on minerals (oil, gas). Also, traders can separate their trading portfolios based on their belonging to the instruments. For example, Index or Forex traders. It is not uncommon on the Etoro platform for those who position their strategies as invested on a value basis, referring to the experience of Buffett and Graham.

Successful traders can attract millions of dollars for management and, for example, a popular investor program from Etoro provides a reward for participating in it. The amount of incentives depends on the trader's level in the program. The maximum reward is 2% of the amount under management. So, for example, if you manage $ 5,000,000, then the annual remuneration will be $ 100,000. Now there are about 10 traders on the platform who managed to achieve similar indicators and some of them are represented in the rating The lion's share of traders (owners of master account) have capital under management from $500 0000 to $ 2 000 000 and for them, this form and source of passive income have become the norm and an excellent opportunity to strengthen their financial well-being. This is exactly the case when bright abilities and talents find application and recognition by the investment community.

What techniques are used by traders to increase capital in management and to attract the attention of potential copy investors? What is the list of recommendations for traders who plan to get the maximum number of copying people?

1. Low risk with maximum profitability.

It is these strategies that deserve the maximum recognition from copying investors. This is every investor's dream - a straight line of return directed upward with minimal negative fluctuations in the portfolio value. To assess the commensurability of profitability and volatility, the Sortino indicator is used and its calculation is presented in the ranking tools of

2. The drawdown in the portfolio should not be painful, but if it occurred then compensate it with excessive profitability.

Another important characteristic of the portfolio is the depth of the maximum drawdown of the trading strategy in percentage terms. Along with volatility, this indicator is critically important for copy investors, and many of them are willing to put up with a high drawdown of 30-50%, provided there is a high annual return of 25% - 35%. To calculate the specified ratio - annual profitability and maximum drawdown, the Calmar ratio is used.

3. Formalization of the trading strategy and a brief description of plan B.

In a growing market, all are smart investors and almost genius traders. But for copy investors, it is important that you (as a master trader) understand the investment process and have a strategy of capital allocation. It is also important that you have a plan B if a correction starts in the market. Any investor would like to have at least a general outline of what the portfolio manager will propose for immunizing a portfolio to mitigate the negative impact of systematic risk. Of course, everyone may have a plan in words, but in practice, it may not be as effective. Therefore, try to make sure that the Beta coefficient, which reflects the systematic risk for the portfolio, is within 0.2 - 0.7. Most often, traders get to the top for copying, who have a low level of drawdown and moderate volatility and Beta less than 1.

4. Effective communication with copy investors and the ability to answer tricky questions in any mode for a portfolio - whether it is growth or a painful fall.

Nobody likes being quiet, especially when it comes to personal savings under management. One can enthusiastically sing the praises of a growing portfolio, but it is much more important to have a direct and honest conversation with the copier in conditions of unfavorable events for the market and the emergence of a downtrend. In this situation, your leadership qualities and ability to manage a portfolio in a crisis situation on the markets are manifested. It is important to explain to the copiers the logic of the correction process and that this is a part of an investment cycle.

5. In conclusion, I would like to add that all traders who will be able to adequately pass through the filters - the test of time, volatility, drawdown, and systematic risk at the end will receive a ranking place in the  rating.

The rating is as formalized as possible and is built on the basis of statistical models and there is no place for emotions. If you are the best trader in terms of a set of multivariate indicators, then your place in the top 10 traders will be yours. We will try to convey your abilities to the largest possible number of people and potential copying investors. And I can assure you to be the best in the rating is a very difficult task and a very small circle of talented traders can do it. Dare, strive, dream of the impossible except that everything is possible for those who relentlessly follow the set goal.

How does Etoro's Popular Investor program work? Click here to get details.


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.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.