Traditionally one of the biggest selling points of social trading products has been the ability to automatically copy or mirror the trades of selected guru’s or signal providers. The idea being that this lowers the barriers of entry to newer traders who are then able to achieve trading success by simply choosing the right traders to copy/mirror. Many have been sceptical of this model and TopTradr differs from the other social trading networks out there by not supporting mirror trading on their platform.
The TopTrader Score
At the heart of the TopTrader offering is a proprietary algorithm which ranks traders based on their trading performance. Rather than just focusing on total return the TopTradr algorithm takes into account consistency and risk reward ratio. The algorithm returns a TopTradr score which is simply displayed as a number, allowing users to instantly compare the performance of the traders using the TopTradr application. According CEO James Olden “Our vision is that your TopTradr score will become a measure of your ability to trade; like a trading Klout score. It would become a professional influencer, a way to prove your credibility. Essentially, this will clean up the industry as we’ll gain the very best traders and get rid of those who only talk”.
Become a Prop Trader
Using the TopTradr score, the best traders featured on the platform are awarded with the firm’s own cash, allowing these highly rated traders to go on to be prop traders. Essentially successful traders get the chance to manage the company’s funds receiving a share of any of the profits made. TopTradr has been awarding its users a healthy sum of money, with the firm awarding a total of $37,500 a week. While TopTradr can be used by anyone with a FXCM demo or real account, only those with a real account with the brokerage can be in the running to be awarded money to manage. Currently TopTradr can only be used in conjunction with FXCM, but CEO James Olden has stated that they are looking to support other brokerages.
Despite not allowing the automatic mirroring of other users trades, TopTradr has plenty of useful social trading functionality. For instance it is possible to receive real time alerts when selected users open a position, helping users of the application generate their own trading ideas. Traders are also awarded achievements and badges which can help a trader gain credibility, among the community. Additionally it is possible for users to share their trades on Twitter and Facebook. There are also going to be extra features added in the second version of the platform to be launched in 2014, including Chinese language support.
An App Based Offering
Interestingly, the TopTradr offering is mobile only with CEO James Olden believing that the future of trading will be mobile. The TopTradr application is available for both iOS and Android devices, but requires that users also download the FXCM Trading Station Mobile App which are then synced. The process is pretty painless and the chance to earn significant rewards will surely mean lots of people will be motivated to make use of the mobile application.
The TopTradr offering is certainly going to appeal to experienced traders who are looking to get the chance to manage funds on behalf of others. While not having the mirror/copy trading facilities which are at the heart of many social trading platforms, TopTradr still allows individuals to receive live alerts when selected users place trades and is certainly useful for those looking to generate trade ideas or improve their own trading. With an increasing number of trader ranking aggregators hitting the market it will be interesting to see how the offering from TopTradr fares. Those interested in the TopTradr concept should definitely check it out.