You probably agree finding the best Top Traders in Ayondo Social Trading isn’t as easy as it looks.
We can easily guess what happened to you:
You chose the traders with the most followers… and after a while you had a few unpleasant surprises.
You tried to find traders your own way… but you never really got around to find a precise system to look up the best Top Traders in Ayondo with a real logic or procedure.
Don’t worry, we’ve all been there.
However, this all changes today.
After reading this post, one step at a time, you’ll have learned:
- A precise, efficient, and simple (yet professional) procedure to find the best Ayondo Top Traders.
- Some further practical suggestions, to find the best of the best you should copy.
Don’t jump to the end though!
This post really deserves your attention.
How to find the best Ayondo Top Traders with the Advanced Research filters
Are you new to Ayondo?
Then this is the perfect time to open a Free Demo Account in just a few seconds, so you’ll be able to follow this procedure live.
To search for the best Ayondo Top Traders to add to your portfolio, there is an amazing search tool at your disposal, named “Advanced Filter”.
To access it, click on the “Follower” on the topmost menu, and then on “Rankings List”.
A list of traders will be displayed immediately, with several pre-set search filters. To access the advanced filters, click on the Advanced Filter item, as shown in the image.
After you have clicked on Advanced Filter, you will see a more thorough list of search parameters and filters.
The “Advanced Filter” option is one of the most complete search systems in the Social Trading scenery, second only to that of ZuluTrade.
Let’s go through all the details.
First Section Filters
The first available section already displays many interesting parameters on its own.
In this time period: allows to set the reference period for the research. All subsequent parameters will be evaluated for the chosen period, which may be 1, 2, 3 or 6 months, 1 year or even the entire operating life of the trader within Ayondo.
Career Level: a flag-marked filter, identifying the Top Trader’s path in Ayondo we discussed about in the previous lesson. The first flag will include all base traders in the search results, and so on, up to the last flag, which will only include the advanced traders. You can use this individually or combining it with other parameters, depending how you want to refine the results.
Risk Score: this filter will refine your research, only including the Top Traders who comply with a particular risk profile, low (1-4), medium (5-7), high (8-10), or everyone (All).
Filter Top Traders: there are two available check boxes, you can select both, neither, or just one. The options you have are:
- RMT: Real Money Trader, only include traders who work with real money;
- POP: Most Popular Trader, ticking this box will include only the most popular traders, i.e. traders with many followers (more than 350).
Trader Name: this filter is very useful if you already know the name of the trader you want to follow. Entering the first letters will immediately open a list of the corresponding traders.
Second Section Filters – Range Filters
Filters in this second section will also refine the research based on the selected period (in the first section).
Be careful. You can also use other period filters, but evaluating the data across the complete history of the traders is very important, especially when it comes to drawdown.
Performance: Value ranging from 0 to 300 (percentage). Setting it from 50 to 100, for instance, will result in all the Top Traders who had performance levels between 50 and 100% in the selected period.
Risk Score: the risk score assigned by Ayondo to Top Traders. Values here range from 0 to 10. Setting the “All” parameter from the drop-down menu of the Risk Score filter (in the first section) you can tune this filter to intercept all traders across the three risk bands (low, medium, high), for instance refining the risk score from 4 to 6, which would otherwise be impossible if using the first Risk Score filter, as it covers part of the low and medium risk bands.
Ratio Win Months: filter by the percentage of months with profits. This might prove useful to skim all Top Traders with “extreme values”, whether positive or negative.
Max DrawDown: As always, anything offering the chance to refine results based on an important parameter such as the DrawDown is extremely useful. Later, we will also see the values we use when talking about DrawDown.
Num. Follower: the trader’s popularity filter. Remember, in this context, following the herd isn’t always the best choice.
Profit/Trade: a ratio of the trader’s profits and executed trades (it is unclear whether it refers to Euro, pips or percentage).
Mly Volatility: the volatility of returns on a monthly basis is certainly a delicate and felt subject, particularly for low-risk followers. As mentioned in the previous lessons, as volatility increases so do the potential profits, and risks. Many investors prefer to avoid high oscillations in the capital, and are satisfied with a profit of a few percentage points higher than the returns offered by government bonds (risk free securities) in order to keep a very low volatility.
Num Trades: filter used to search traders based on the amount of open transactions in the selected period.
MAR Ratio: the average annual profit compared to the maximum DrawDown, the higher the value the better.
Sharpe Ratio: As seen in the previous lesson, this index is commonly used to evaluate the returns of a portfolio net of risk free profits (commonly determined by government bonds) compared to the risk of the portfolio itself. We could define it as an index that evaluates portfolio risk optimization in relation to its profits. This ratio should always be high, as this means that the risks of the trader produce interesting returns. However, the following aspect must be considered. Although 2 is higher and better than 1, how that result was achieved is extremely important.
2 = 50 (returns) / 25 (risk)
1 = 5 (returns) / 5 (risk)
While it’s true that the top trader in the first example earns more profits than the risk he undertakes, it’s just as true that a risk of 25, compared to a risk of 5 (second example), is 5 times higher. So, this indicator is interesting, but it can’t be used alone to locate the Top Trader suitable for all needs and portfolios.
Traded within: this filter allows you to search for traders who have been trading since the selected period. For instance, setting a value of 7 will search only for Top Traders who have performed at least one trade in the last seven days. If properly calibrated, you can:
- exclude traders who operate infrequently;
- exclude traders who have achieved interesting results, but are no longer active;
- include traders who operate frequently, maybe even daily.
Ratio Win Trade: search according to the percentage of trades providing returns. This filter too can be useful to skim top traders with extreme values. Like the previous “Ratio Win Months”, this could be defined as a “character” filter, not of the Top Traders being found though, your character. If you are impatient and do not like long-term thinking, as you want to see your account move quickly, it’s best to set a higher value for Ratio Win Months, cross referencing it with other functional filters to find the right traders for you. Vice versa, if you’re not afraid to try long-term strategies, which require more patience to obtain good results with contained risks, you can look for Top Traders with lower Ratio Win Trade values, even below 50% (still cross referencing the results with other values).
What type of trader are you?
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Step-by-step Procedure To Finding Ayondo’s Top Traders
Finally, the main event of this lesson! Let’s see the logic of InvestinGoal to finding the best Top Traders of Ayondo Social Trading!
This has already been said, but it should be clarified once more.
The settings we are about to describe are the ones WE use to find the Top Traders for our accounts. They might not be the best results for all followers, as different investment goals and risk propensities need different traders, who we might exclude from our portfolio, but could very well suit yours.
After this much needed premise, here are the features we look for in a Top Trader:
- A good, but credible, performance (extreme values are always to be questioned);
- An acceptable DrawDown level;
- Traders investing with their own money (not necessarily though) are preferable (we believe them to be more trustworthy);
- The higher the risk/returns ratio, the better.
It seems like we might be asking for too much… but it’s not even that much, since our money is at stake.
As you can see, Ayondo has many Top Traders to offer, but not as many as other platforms.
This means a strict research might return too few candidates. That’s why our approach is based over more levels.
Our first inspection is based on stern parameters, and over the next steps we start loosening the filters.
First Level Research
– In this time period: set as “Since inc”. We want the analysis to be made on the whole history of the traders, not just on the last year or month of activity.
– Career level: Only select the fifth flag, the blue one, which means “Institutional”. This means we’ll be looking only at Top Traders with at least one year of operating activity and a DrawDown below 25%.
– Filter Top Trader: RMT (real money trader). Flagging this box, we’ll only see Top Traders operating with real money.
– Performance: Let’s set values ranging from 20 to 300+, so we won’t accept traders with a profit of less than 20% over his/her whole history, which is of at least one year (not a bad result for a trader).
– Risk Score: in this case, let’s set the range from 0 to 6, which will include all traders Ayondo considers to be low risk, plus a part of medium risk traders.
– Max Drawdown: This is a very important aspect, which we’ll set as a range from 5% to 25%. We won’t set it from 0 as this is no fairy tale, losses are part of the game. The high threshold, values above 25%, besides not being inviting, wouldn’t be considered anyway, as the fifth Career level flag already excluded Top Traders with Drawdowns above 25%.
– Mly. Volatility: While this is certainly not a necessary parameter, as we’re trying to be strict, we’ll set it from 0 to 10%, which is still an interesting value. This way, we’re telling Ayondo that we’re looking for traders who can produce, in a month, a variation on returns of up to 10% (positively or otherwise).
– MAR Ratio: This is one of the most interesting parameters provided by Ayondo, and we set it to range from 5 to 10+. This setting should return traders who have an average performance at least 5 times as high as their maximum Drawdown (if their DD is of 20%, their performance will be of 100%). This is a highly skimming parameter, so much so that after having set this we probably won’t need to set any other parameter.
– Traded within: This is the last parameter we’ll work on, setting it to 30, just to exclude traders who have been inactive for over 30 days.
As anticipated, this tight a research will result in very few Top Traders, some of which you might not even want to add to your portfolio.
Anyway, with time, Ayondo’s Top Traders will most likely increase, and this type of research will become more and more efficient.
In the last section we’ll see the other things we’ll need to check.
Second Level Research
To increase the number of Top Traders resulting from our search, we can change two parameters from the previous research:
– Filter Top Trader: try to remove the RMT flag, doing so traders operating with demo accounts will also be displayed.
– MAR Ratio: let’s broaden this search, increasing the range from 2 to 10.
These are the only two elements you should change to allow Ayondo to identify some additional Top Trader.
Third Level Research
In this last phase we can set two different goals: identifying some future promise among the Top Traders, some trader who’s still young, but showing good performances (to see later); or identifying some solid trader with a sufficient history, but with some risk-returns features which could be improved.
Identifying the future stars of Ayondo: in the filters, set as the Second Research Level, only change the “Career Level” flag, adding the fourth one as well. This will include Top Traders with good performances but little history. A following check will reveal whether they can make it to our portfolio.
Identifying useful but not exceptional Top Traders: again, starting from the Second Level Research settings, change the MAR ratio, bringing it from 1 to 10+. This will include traders with at least one year of history and a good drawdon, but with a risk-returns ratio which could be better.
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Tips to find the best traders on Ayondo
Now you’ve learned all the procedures to find a list of Top Traders to follow, the second step is analysing them, one by one, choosing the ones that best suit your needs.
Here is what you should do in this phase.
– Tip #1 – Check the Trader Profile
As in the previous lessons, every Ayondo Top Trader has a profile page with many operating details, stats and parameters. Now, it’s the moment to professionally analyse the Top Trader Profiles, evaluating all their data.
This phase can’t be avoided, it’s the most important one. You need to know everything of the trader you want to follow, to avoid unpleasant surprises in the future.
– Tip #2 – Check the Transaction History
An extremely important section of the Trader Profile, so much so it deserves a tip all by itself, is the Transaction History.
Being less graphically “attractive” than the other sections, Transaction History is often forgotten or deliberately ignored. But actually, this is one of the best elements we have to find information on the operating style of the Top Trader, and should be analysed thoroughly.
With a bit of patience, carefully observe the operation data.
When were his trades opened? What was the price? Did he already have other positions on the same asset?
Yes, it might be boring, but you’ll be amazed by all the things you can find out with such a minute analysis. Keep it as the final phase.
– Tip #3 – Check the Open Positions
Before you even start thinking of following a Top Trader, always check how many open positions he has at that moment, and how many pips/points he’s gaining or losing.
This is often a quick way to see if he uses Martingala or similar strategies.
– Tip #4 – Use the Demo Account and the Portfolio Builder
This is the most important suggestion.
Ayondo provides everyone with a 21 days Demo Account, so use it as much as you can.
You can create several Portfolios, each with at most 5 Top Traders. Everytime you create a portfolio, the system will automatically add the history performances made by all composing Top Traders.
This way you’ll be able to assess, based on the graphed historic data, the performance, laterality and drawdown, and you’ll be able to plan any customization and security measure to replicate the portfolio.
We’ll see many of these interesting features over the next lessons.