eToro is a unique online trading platform with distinctive Сopy trading capabilities. In addition to the CopyTrader system and Smart Portfolios investment strategies, eToro has introduced a number of new features such as Stop Copy.
To start with, CopyTrader is one of the main features that makes the platform one of the leaders in the Copy Trading niche. With this function, you can select the traders you want to copy, determine the amount you want to invest, and reflect everything they do automatically and in real-time with the click of a button.
Also, in addition to the main function of Copy trading, eToro has many additional features.
CopyTrader – Copying all trades
The CopyTrader system gives copiers the ability to reflect all currently open trades of the Copied Trader with the option to use the same stop-loss (SL) and take-profit (TP) as the original trade. Traders are also free to close a specific copied trade without closing the copy account and to view all trades copied from one trader, go to your portfolio and click on the name of the Copied Trader.
CopyTrader – Copying only new trades
Traders using this feature will only reflect new trades opened by a colleague you like after the copy action has started. New trades will be opened at the same rate as the Copied Trader opens them, and the proportions will be calculated from the Copy Trader’s Realized Equity (account balance + invested funds). Trades will have the same SL and TP as the original trades.
Copy Stop-Loss (CSL)
CSL is a feature that gives you the ability to set risk controls for all dollar-value copy relationships. The system will automatically set the CSL at 40% by default of the total cost of nested copies per ratio of copies. So now you can assume that when the cost of copying decreases by 40%, CSL will activate and terminate this copy relationship, returning the remaining funds to your balance. The range in which you can manually set your CSL is from 5% to 95%. The 5% value is a true safety net that should only come into play when almost all of the money in that copy relationship is gone.
Copied Trades SL
The CSL feature was introduced in order to limit your overall exposure to any trader. Since your copied trades are protected by CSL, the company can provide more flexibility regarding stop-losses (SL).
In this case, when the Copied Trader extends their stop-loss, the additional funds are not deducted from the total amount of the copy. Thus, any trade can go into more than 100% loss, which gives it the opportunity to potentially recover losses without being closed by a stop-loss, while leaving a copy amount with enough balance to cover additional trades. But in the event that the Copied Trader reaches the set CSL in relation to the total unrealized loss, all copy relationships will be closed.
Also with CopyTrader, eToro has introduced Pause Copy, a feature that allows you to stop copying a trader without actually closing out all currently open positions. When using Pause Copy, new trades will not be opened according to this copy ratio, but all currently open trades will still copy the SL/TP and close actions from the Copied Trader.
Learn how to trade CFDs, stocks, Cryptocurrencies, currency pairs, and other popular instruments with Top Forex broker eToro
eToro’s Smart Portfolios
In addition, the company has such an amazing feature as eToro’s Smart Portfolios. Each Smart Portfolio brings together a different asset or group of traders and is continuously optimized by machine learning algorithms.
The default stop-loss for a Smart Portfolio is set at 10%, and the weight distribution of each Smart Portfolio may change over time.
Market Smart Portfolios
Market Smart Portfolios combine different assets into a single portfolio, following a predetermined market strategy or focusing on a specific market segment. eToro’s professional experts determine the composition of each smart portfolio, combined with a machine learning algorithm programmed to reduce risk and increase potential rewards.
Top Trader Smart Portfolios
Powered by the CopyTrader tool, Top Trader Smart Portfolios combine successful traders into different portfolios. Like Market Smart portfolios, traders are selected by eToro’s investment committee and a sophisticated algorithm.
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