What is Etoro social Forex trading and how can it help Forex traders develop the best Forex trading systems and strategies necessary for success in the Forex markets?
Etoro is the world’s largest social trading network founded in 2007 and have millions of members in the Openbook network.
The Etoro network allows traders and investors from beginners to advanced to connect with other traders and investors, to tap into the 'wisdom of crowds', to copy others traders and arrive at a profitable trading strategy.
The Etoro network provides access to Forex, stocks and commodities, and automatically uploads every trade placed through the network for review and analysis by the other Etoro trading members.
With many currency pairs to choose from in Etoro's Openbook trading platform it's possible to fully automate the best Forex trading system by following the most successful Forex traders on the currency pairs of your choice.
Many people incorrectly assume Etoro are a broker, however Etoro is primarily a platform and software provider that interfaces with third-party brokers through their API system: they do not execute trades directly.
For professional traders who have already arrived at the best Forex trading system and wish to submit their own trades Etoro offers Webtrader trading platform. Webtrader is available in 'live' and 'practice' format which facilitates the testing of trading ideas before committing actual funds to a Forex trading strategy.
What is Etoro's weakness? An important point to consider when using Etoro trading network is that past performance does not necessarily equate to future performance. Just because a trader has been successful over recent history this does not guarantee they will continue to be successful in the future.
Survivor-ship bias must be factored into the decision-making process when choosing to follow a trader and their strategy. By searching for the best trader within the Etoro search tool you will be presented with the historical best performing traders which represent a small percentage of the total number of traders in the Etoro network. Generally speaking the larger the sample of trades executed and time frame of trading operation, the more dependable the track record will be.
Once you have located a trader and strategy that you feel comfortable with, it's a good idea to 'walk forward' test this trader on a practice account before committing real funds so that you can determine how their trading strategy holds up in real-time, through changing market conditions: This will reduce the risk that you have selected a trader based solely upon hindsight survivor-ship bias, and reduces the potential for disappointing results.