eToro in a short post

Barry Jones

>>> x = [1.09, 1.84, 15.04, 3.61, 0.68, 7.62, 16.60, 15.16, -6.53]

>>> (np.exp(np.log(np.array(x) / 100 + 1).sum())) * 10000

16687.288633717548


vs.

saying

27038

Err.... what the ... lol?

I guess it is time to say goodbye to copy trading...

I mean,
a) can't eToro just come up with 2 measures in 12 years that accord with each other?
and
b)
(i) not detailed here, but costs probably make performance measures misleading (in my experience)
or if not (i) then
(ii) when copied users add funds, that makes it difficult to interpret their performance, and furthermore
c) while copied users get rewarded for their success from their followers gain (which reward can by the way be reinvested), will they suffer proportionate losses when their copiers incur losses, so as to increase their awareness of the risks they are undertaking? I would easily take a guess (i.e.: no). So - they are basically incentivised to take risks, being under penalised for their failures.
Smells like negative selection, my friend.

So, great idea, but the execution leads to a likely early goodbye, even though this guy's the current best performer (and got there very quicky!) in my virtual portfolio.

By the way, my copy portfolio is as:

All of these folks were editor's picks at some point.
Barry Jones is the only recent addition, the rest had at least a month or two to show off.
Clueless how to check when I actually started copying them.
12 years of development.
Well done, guys.