Roberto Anzellotti @IlMatematico: "AN EXPLANATION ABOUT THE MINIMUM..."

Italy

AN EXPLANATION ABOUT THE MINIMUM COPY SIZE If the minimum copy amount is 200$ , why do some Investors recommend investing larger amounts? This is the question that you have surely asked yourself at least once, and in this post I will try to explain it to you. As you well know, when you start copying another investor, you decide on an amount with which you will copy the investor and your copy amount will be re-proportioned in such a way as to use only the capital that you have decided. But an important thing to know is that on eToro copytrading, copier operations are performed only if the amount of the operation is greater than 1$ . So if a Popular Investor has a portfolio of 200,000$ and someone copies with 200$, the operations made by the P.I. with amounts less than 1,000$ will not be copied because re-proportioned on 200$ they would be less than 1$ . ✍️ Practical example: ➡️ A Popular Investor has a portfolio of 200,000$ ➡️ A copier invests 200$ in the copy (0.1% of the PI) ➡️ The PI opens a position of 1,000$ (0.5% of his capital) ➡️ The copier's position would be 1$ (200$ × 0.5%) 📌 Result: The operation is copied by a hair, but if the PI had invested 900$, the copier's share would be 0.90$ and therefore it would not be copied! The same goes if the PI had a portfolio > 200K, that position would not be opened because it is less than 1$ . Therefore the size suggested for the copy by the various PIs takes this factor into account and suggests a copy size that will not lose any operations (consider that especially P.I.s who trade, often operate with very small sizes). #️⃣ Furthermore, you must also take into account portfolios that have been open for many years, with positions that have been open for a long time, which were large positions at the beginning, but which as the portfolio grew have become percentage-wise irrelevant. In my case, for example, since I started, all my new operations have always been at least 1% of the portfolio, so as to leave a good safety margin compared to the copiers' operations, even with the smallest portfolios; over the years, however, the portfolio has grown by 10x and those operations that were 1% are now 0.1%. After a merger of the smallest positions, now (I think) the smallest size of my portfolio is 0.2% and that is why I suggest you copy me with at least 500$ : to ensure that when opening the copy all the operations are copied. I hope I was clear as these topics can be a bit difficult at times. Questions? Doubts? Uncertainties? Ask me in the comments and I'll try to help! I am @IlMatematico, and using my algorithms, I try to extract value from the markets. Add me to your watchlist to stay updated on all my news and all my movements on $BTC, $SPX500 and $NSDQ100 !

Not investment advice. The author may have financial interests in the mentioned instruments.