Etoro’s OpenBook Review – Commodities

If you are looking for the trader’s ‘magic bullet’, then Etoro’s OpenBook is not it, but there will never be one despite many current claims to the contrary. It is however well more than just worth a look, as it does show you what other traders are doing, and more importantly it shows you who wins, at what level, and how often. Before looking at how to use the ‘tool’, let’s have a look at its features.

Firstly, the traders feed is a live streaming list of all registered traders’ opened and closed trades, including orders. This tells you who the trader is, the price of their trade, and if they closed, were they in profit or not. (It also lists percentage profit, but not percentage loss).

You can view the full feed of all traders, or stick to the top one hundred traders, which is probably the best option, as it’s not really worth following the newbies. Once you have identified a trader who has closed in profit you can click on their username, and view their profile to see how they do overall. What you do from here is up to you. If you think that they are a successful trader you can ‘follow them’ which will add them to your ‘friends feed’.

etoro openbook

You can also copy trades, so if Bob opens a Gold trade, you can click ‘copy’ in the bottom right of the trader’s box, and the trade will be copied into your trading interface, as long as you are using the online version. This is obviously a risky thing to do, as although OpenBook allows you to see who is trading what, it obviously doesn’t tell you ‘why’.

You may have identified Bob as a successful scalper, and follow his lead. Identifying scalpers is not as easy as it could be, as when you see a deal that has been closed in profit, you are not given details as to when the trade has been opened. Even when you look at their profile and you see what appears to have been the opening trade, you cannot be sure that this is not a concurrent trade on the same instrument, and is in actual fact still running. You can look at the trader’s stats, and the ‘average trade time’ in the ‘Trading patterns’, this and other factors noted will give you a further clue as to their trading style.

Regarding the ‘Top Performers’ option, you can select from Daily, Weekly, or Monthly, and monthly is probably the best option, and ‘Yearly’ would be even better if it existed.

The value of this ‘tool’ is down to the individual trader. You can find plenty of tips and help through the various trader forums, but although there are many helpful forum members out there, their is also a lot of B.S. to sift through. The difference here, is that the trades are really taken from the ‘horses mouth’. The only problem is that you will need to do a bit of guess work to figure out why the traders are doing well.

If you do see a trader who is winning 90% of their trades, then to copy one of them is not a statistical surety. In fact if you copied all of them for a month you may also end up in trouble if they are having a bad month. Also, another caveat, even though the trader may be in the top 100, and winning 90% of trades, their 10% losses are not quantified, these could be big trades which counter the balance.

This ‘tool’ is new, and as yet, real feedback on it’s use is yet to appear. To fully assess a tools usefulness needs a bit of time, you can’t really score it without giving time to look at the potential shortcomings and advantages, which ultimately need time to test. It does show potential, and is an exciting tool which is definitely worth a look. Take your time, step back, think about it, and then revisit it with a clearer mind. Etoro have spent a lot of time and money developing this and caveats aside, it’s the most exciting ‘tool’ to emerge for a while – check it out.

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