I did already report about my first experience I made with my social trading account at ayondo with some blog entries in German. Now I thought it would be nice to have an English comment on my experience here as well.
Ayondo is a German/UK based social trading platform wich offers CFD trading and copy trading of the trades of other traders. So this means you can select up to 5 traders (out of hundreds) and build a portfolio of traders you follow. Following a trader means, that in your portfolio all transaction of the selected trader(s) will be executed simultaneously. So gains and losses will affect your portfolio pro rata, depending on your invested amount and weight you have applied to a trader.
The key element here is to select and monitor your traders, rather than to trade yourself. The website offers therefore a ranking of traders and a search engine where you can filter the traders by certain criteria to find your best fit for your risk appetite. The platform offers a demo account to test your selection for while, before you invest real money into your portfolio.
As reported this selection should be done carefully and one should monitor the traders regularly to avoid unpleasant surprises. As reported even a good looking performance in the beginning can turn into the opposite, if trades do not manage the risk properly.
The good thing is that you can set a stop loss limit for the entire portfolio and the execution is automatically terminated (including all open trades) if your account balance (plus open positions) fall under a certain limit. This optional feature can help you to protect your investments from total losses.
Initially I did start my own account in November (with a few bugs only), when I thought the market would enter into a phase with no clear direction and I was not wanting to make a bet on being long or short in general. I do not have the time during the day to make day trading and on top due to my job I am subject to certain trading restrictions, so this looked to my like a good idea to test this fintec platform myself.
And while the markets have been quite volatile and the new year 2016 has started with significant losses, I am quite happy with my decision. Year to date the German Equity Market lost about 11% while my trading account is up 11%. So my current two traders Fxtore and simplytrader have outperformed the market by 22% within two weeks. A fantastic start into 2016.
For those who want to stay up to date with the performance of my portfolio, I will post every week the results via my twitter account. So stay tuned and keep the fingers crossed that this will continue…