CopyTrader 2.0: Introducing Stop Loss Alignment


As part of the CopyTrader 2.0 project, we are pleased to announce a new version of the CopyTrader which now includes Stop Loss Alignment, set to be launched this Sunday, February 23. The new CopyTrading system will make sure that when you copy an investor you will always get the same Stop Loss / Take Profit rates as the copied investor for any one copied position, no matter how much available cash you have in your balance. In addition, this version will see several other features discontinued, including the ability to “Copy All Open Trades” on weekends and the ability to edit the Stop Loss and Take Profit rates and the “Carry Over the Weekend” option for a copied trade (though you will still be able to close it manually). For more details on all the changes read the full post below.

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Hi all,

My name is Paz Diamant. I am the new Trading Product Manager in eToro.

With many years of experience in the financial markets and web solutions, I am excited to join eToro and put my rich expertise to use developing this unique product.

We at eToro are working tirelessly to improve our CopyTrader system, largely based on the feedback that we’ve been getting from you, our community members.

We are focused on an initiative we call “CopyTrader 2.0”, which aims to redesign some of the core logic in our system in order to significantly improve your user experience and the quality of our offering. This initiative is already underway, and our developers are hard at work striving towards a more accurate, “rock solid” system, that still retains the simplicity and usability that you’ve come to expect.

Today we are happy to announce the upcoming release of the first version of CopyTrader 2.0, including “Stop Loss alignment”.

The new CopyTrading system will make sure that when you copy an investor you will always get the same ‘Stop Loss’ / ‘Take Profit’ rates as the copied investor without any cash based limitations. What does this mean?

It means that if a copied investor moves the Stop Loss on a specific position (which means putting more funds from his available cash into this position), the system will no longer consider the copier’s available cash limitation and will give him/her the same Stop Loss as the Investor.

Why are we introducing this change? Because the Copy Stop Loss Manager is watching the overall balance limits and will not let you go into negative balance. This means that when your CopyTrader relationship with a specific investor reaches a 95% loss, your copied trades (for this investor) will be closed, as explained in the Towards CopyTrader 2.0: Introducing Copy Stop Loss blog post. Therefore, as long as your CopyTrader relationship is active, there is no reason to limit the individual SL for each position.

In order to make this significant step possible, we have had to make additional changes to our CopyTrader mechanism.

Here is a summary of the changes that will be introduced.

1. The following features will no longer be supported:

– The ability to edit Stop Loss and Take Profit rates or the “Carry Over the Weekend” option for a copied trade and detach it from the CopyTrader relationship. However, you will still have the ability to close a copied trade
– The ability to copy a single trade (not via CopyTrader) and have this trade “connected” to the original trade
– The ability to copy a new trader with the option of “Copy All Open Trades” during weekends and other times when the markets are closed
– The ability to  stop copying a trader, during weekends and other times when the markets are closed

The above mentioned features will be disabled in order to move towards a better and clearer CopyTrading experience.

2. Stock Trading: As of this version, all CopyTrader features will be fully supported for stock trading. The regular stock order execution hours will apply to all copied stock positions.

3. Allocation amounts will be calculated based on the investor’s “Realized Equity” (Available Balance + Sum of invested amount in open trades),  instead of “Total Available Balance” as it used to be. This is another step towards providing better synch in the relationship between copier and copied investor.

We can also update that eToro is investing great efforts to deliver the next version of CopyTrader 2.0, which will provide more scalability and support for larger trading activities.

The delivery is planned just after its stability testing period will be over.

We trust that this will bring further robustness to the CopyTrading system and a more simple interface for the copiers.

Thank you, and as usual, we welcome your feedback in the comments.