2018 Q1 eToro Trading Report
In the course of this article, I’ll be taking a look at the market performance of my trading as Jaynemesis on eToro. The data used is available to everyone, with links provided in the sources section below the article. My eToro profile can be found by following this link: CLICK HERE
The time-frame used for all the data analysed in this article was from the 1st January, 2018 to the 29th March, 2018. In the case of cryptocurrencies, which can be traded 24/7, midnight is treated as market open/close. For clarity, all averages used in this post are taking the mean. Trades opened prior to 1st January were treated as if a new copier had copied open trades, trades remaining open at the end of March were treated as if the copier had closed all trades at noon on the 29th March, 2018.
Separated Crypto & Non-Crypto trading was based on the assumption that initial investment, and compensation received, was split 50/50. The data received is intended to be representative of my performance, and will not map with 100% accuracy. We estimate a total margin of error around 2-3%. If you're interested, you can see all the data used by following this link: CLICK HERE
In the period of time analysed, I closed 353 trades across 48 assets, and as of the 29th March, 2018 had 103 trades open across 31 assets.
During this time, the averaged profit/loss per asset for closed trades was -2.83%. When the drawdown from open trades is included, the averaged P/L per asset was -8.22%. I began the period with $44,744.44 and closed the period with $32,451.55 in total equity (including drawdown).
A brief review of my closed trades in this period shows the following:
Most traded crypto: Bitcoin (69), Ethereum (45), and Dash (31)
Most traded stock: AMD (43), Nvidia (18), First Solar (15), and Solar Edge (15)
Best performing crypto: Ethereum (+$181.81), NEO (-$193.99), and Stellar (-$394.11)
Best performing stock: Solar Edge (+$696.54), Netflix (+$501.58), and Amazon (+$280.54)
Worst performing crypto: Dash (-$2284.56), Bitcoin (-$1558.58), and Litecoin (-$927.24)
Worst performing stock: Western Digital (-$118.24), AMD (-$43.44), and Electronic Arts (-$41.40)
To briefly cover the salient points:
Bitcoin and Ethereum stand out as my most actively traded by some distance, this is primarily due to the ability to day-trade much easier as they benefit from better spreads than other cryptos. Ethereum was the only crypto that returned a profit during the period in question, with both Bitcoin and Dash providing substantial losses. I believe the performance here was affected heavily by my portfolio re-balancing during the drop. It is worth noting that both Bitcoin and Dash were my two largest positions in crypto when the drop started.
Although things appear negative for cryptos it is important to remember the scale of the correction the market has seen when analysing performance and decisions taken. I have identified areas for improvement but am not too unhappy with the performance given the conditions.
My most actively traded stocks are interesting in that they are in two categories; processing hardware and solar panels, and there are two rival companies traded actively within both categories. It shows that I am willing to trade both sides of an industry when confident that the industry as a whole is growing. These are also among my best performing stocks of the quarter, with Solar Edge standing head and shoulders above the rest. The two additional companies which gave strong results were Netflix and Amazon, both of whom have near-monopolies on their respective sectors. Unfortunately my heavy trading of AMD has resulted in a small loss this quarter, as a result I have taken a fresh look at my approach and how I will trade it going forward.
Jaynemesis Averaged Non-Crypto Performance: 6.03%
The majority of my non-crypto trades are in equities, so a comparison to major indices, often used as benchmarks for hedge funds, seemed like the best comparison. As this chart shows, my averaged performance outperformed every index at 6.03%. With my largest stock position in AMD, which suffered two of its worst quarters in the last 3 years, I'm happy to see that I strongly outperformed every benchmark listed.
Jaynemesis Averaged Crypto Performance: -51.52%
As this chart shows, my averaged cryptocurrency performance (closed & open trades) rests between Ethereum Classic and Monero, meaning my crypto trades outperformed 66% of the top 15 cryptos by market cap. While the goal is obviously to have my trading result in an increase in value, managing to mitigate losses in a bear market is an important marker of long term success, and I'm confident that I can trade future bear markets more profitably. When compared with trading equities, it is important to note that I am much more limited trading cryptos due to the higher spreads and relatively small selection of cryptos available for trading on eToro currently.
Jaynemesis Overall Performance: -23.05%
All profit percentages are in the negative for this period, meaning a loss was likely regardless of where you invested in stocks, crypto, or copiers to trade both. The five best indices outperformed my combined trades in this quarter, as did the Index/Crypto Combined although by a much smaller margin.
Overall, I'm satisfied with my first navigation of a serious bear market since I became an Elite Popular Investor on eToro. There's a lot to be learned from this performance; in hindsight there are times I could have ameliorated significant losses. I have identified a handful of key indicators present prior to the bear market which would have assisted me in my trading during this period. These learnings will be taken forward and utilised in future bear markets.
I intend to do these quarterly reports on my trading in the interests of transparency. If there are additional things you'd like to see, or any comments, feel free to get involved in the discussion.
I've included a list of sources below.
Jaynemesis’ trading statistics taken from 2/1/18 to 29/3/18 on eToro.
Crypto statistics taken from 2/1/18 to 19/3/18 on eToro. In cases where a price was not available on eToro, coinmarketcap was used in its place.
Indices statistics taken from Google Finance.
Indices used were the Top 15 with available charts listed on Yahoo Finance as of 29/3/18
Cryptocurrencies used were those listed on eToro, and in the Top 15 of CoinMarketCap as of 29/3/18
Full list of indices:
S&P Composite 1500
Full list of cryptocurrencies: