(eToro Blog) For the better part of the last year, and certainly in more recent months, it’s clear that this eToro top trader, santoshtiwari, has tried to avoid the swings of the highly volatile Euro-Dollar in favor of the more predictable GBP/USD pair. In the past year, he has booked over 85% of all his trades on GBP/USD, and currently has 8 of his 11 open trades on the pair; the majority of those are sell positions but more recently he’s added a hedging GBP/USD buy as well.
Over the same year, only about 8% of his trading activity had been focused on the forex community’s favorite pair, the EUR/USD, and even now it would seem he couldn’t abandon it entirely, for there is a single open trade on the Euro-Dollar, the fate of which is no doubt being closely monitored. Over the long haul he’s been able to book a slight profit from the EUR/USD pair, but with the ongoing crisis in the Eurozone, he’s been, if not burned, then singed just a bit, and appears to be taking a breather, again focusing primarily on GBP/USD.
We took the opportunity to ask him some questions over the weekend, during the regular lull in trading activity, to learn a little more about what makes him an eToro Guru.
eToro: Over the course of the past year your gains have been tremendously steady with strong returns of 198%. What’s your secret?
Guru: My secret is that I have a clear target in terms of what I want to achieve from trading and work within my strategy towards achieving it. I avoid any impulsive trades and stick to the trade plan. I believe you have to select the areas you want to trade first, then learn as much about them as possible.
eToro: Given the current market volatility, what do you believe is the best way to exploit it?
Guru: I trade with a reasonable equity percentage and measured risk. And before I place any trade, I ask myself what can I do if this goes opposite my expectations? I know that the answers may be different for different people but I believe as long as you have clarity, things will work out.
eToro: You focus primarily on Sterling pairs and considerably less on commodities and indices. Is it because you think Forex has more opportunities? Do you see this changing?
Guru: I am basically a fundamental trader, which makes it important to understand the pairs which you want to trade. Opportunities are everywhere; it’s all about how much time you have to focus on different pairs. I am planning to slowly diversify into other pairs, as well as commodities and indices.
eToro: On the last Expert Corner you were bullish on the Sterling. Interest rates then were rising worldwide and U.K. inflation was edging higher. Today the situation is far different; rates are falling and recession looms, yet you remain bullish on the Sterling. What makes you a Sterling bull?
Guru: I have always maintained the principle that at the end of the day it is the fundamental strength of a currency which determines its direction. That is becoming quite clearly visible in the market through the impact of sovereign bond rates and rating on currencies. Compared to its European counterparts, the U.K. government has maintained the economy in a very disciplined manner, even while facing and risking public anger. There could be daily jumps and falls, but in the long term direction, that is why my view of GBP will stay bullish.
eToro: If you could pick one favorite Trading Guru on eToro who would that be, and why?
Guru: My choice would be Rondev. I have seen the discipline in his trading, in addition to a very shrewd market analysis, and I like the fact that he is not afraid to take losses. I may not follow his trading style completely, but I intend to keep a keen eye on his trading activities.
eToro: What is the best way, in your opinion, to spot a good Guru to copy?
Guru: The way I do it is to watch the trades taken and compare it to market scenarios over a period of time. The key is how well a trader adapts to different market situations. I don’t expect the trader to make decisions which, through some magic formula always are right, but rather I watch how a trader positions his or her trades and manages it when market is going against him. For me, in assessing a potential guru, the critical metrics are:
- Number of pips gained and lost;
- Management of negative trades;
- The amount of time a trader has been trading; and
- Trading profiles during specific periods, such as as quarter ends and year ends.
As one of eToro’s top traders, santoshtiwari has a quite impressive one-year track record on the OpenBook trading platform, and has the huge following to prove it, with nearly 3,300 followers and more than 600 copiers. We expect great things from this eToro trader, and are sure that the numbers of followers and copiers will exponentially explode.
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