Towards “Sustainable Trading” – Video Hangout with MIT’s Prof. Sandy Pentland

Hi Everyone!

At eToro, we’re all about moving forward, and luckily we’ve had some amazing partners help us do so along the way.

Last year, eToro collaborated with MIT’s Dr. Yaniv Altshuler to produce the “Guided Copying” study, which found that guided copying (i.e. copying the trades of a provided “Social Guru”) improved traders’ performance by 6%-10%.

Based on the study’s results we’ve made significant efforts to “tune” our social investment network by helping traders discover the most sustainable Social Gurus by introducing our “Featured Traders” section, adding more parameters to the Guru Finder tool, making trader performance stats more transparent, and by issuing profitability reports and periodical analysis of trader portfolios on the eToro Blog.

So what’s next?

We are once again collaborating with MIT on a second study, led by Dr. Altshuler and Professor Sandy Pentland, in order to develop a “sustainable trading mechanism” which we will then implement in order to elevate our network towards more sustainable investment returns. Here’s a small preview of what we can expect with MIT’s “Daily Tip” technology:

daily tip technology chart
All the details about the project were revealed in this live Hangout event, in which our own Tom Rozenvasser linked up with Dr. Altshuler and Professor Pentland on the evening of Thursday, March 28, to discuss the concept of “sustainable trading”:

As this project moves forward we will keep you updated on all the fascinating findings that are sure to emerge from the MIT labs.

In the meantime, on behalf of the entire eToro team, I wish you sustainable trading.