(eToro Blog) This week we will review Top Trader: Hschinner who has been trading on the OpenBook platform since January 2011. This trader has conquered the trading learning curve and come a long way since his initial days on the OpenBook platform. Looking at this trader’s P&L curve over the last 12 months, we can see that trader: Hschinner dropped as low as -62% in September but the trader continued his learning process. He was not only able to recover his losses but end the year with 100% in profit. This means the trader doubled his account in 2011. This trader has a remarkable comeback story that many traders would like to replicate on their accounts. The trader made his bold comeback with 222% return in the last six months and a 128% return in the last three months. Looking at Hschinner’s portfolio over the last 12 months we see a shift in his strategy.
A year ago when he started trading, he allocated trades to EURUSD, GBPUSD, USDJPY and NZDUSD among others. While his frequency of trading the GBPUSD and USDJPY were low, the trader suffered big losses on these instruments. In all the trader dabbled in 8 different instruments during the first few months on OpenBook. As he progressed, the trader cut down the number of instruments to 6 in the last 6 months and eventually to 1 in the last 30 days. The trader is now focused entirely on EURUSD. The trader has also shifted his risk breakdown to low as he progressed as a trader. The trader’s average duration in the last twelve months has increased from 10.5 hours to 1.5 days in the last few months. The trader has shifted from day trading to swing trading.
Looking at this trader’s recent history, the trader is a EURUSD bear and has shorted the pair from 1.3600 to lows of 1.2800. In addition to using his own analysis for shorting the EURUSD, this trader also relies on using the Copy Trader to follow top gurus such as pyruss and babczyk. Looking at his P&L graph in the last three months, the traders returns have been making higher highs. Trader: Hschinner who primarily speaks in German on OpenBook has 690 copiers so far on Open Book and we expect to see more copiers for this trading guru. He stands out because he is one of the few top traders who was not always at the top in rankings but worked his way to the top using his strategy and skills.
In the first week of trading for the year, the EURUSD made fresh 15 month lows when it dropped below 1.2800. The drop was sparked by a rise in French bond yields after an auction conducted by the French government. French 10 year bond yields 3.29% which was increase from the previous auction in December. Demand exceeded supply by a ratio of 1.6 times but it was much lower than the 3.1 ratio seen in December. Traders on OpenBook are primarily long the EURUSD with average limits at 1.3050 and stops at 1.2700.
The U.S. Federal Reserve FOMC meeting minutes showed that the Fed plans on providing more guidance to financial markets during its interest rate announcements. The Fed will release each individual policy maker’s forecast for rates for the next few quarters and also disclose when each policy maker thinks the Fed will start raising rates. The ADP employment report showed that 325K jobs were created in the month of December. The ISM services PMI printed at 52.6 and the ISM manufacturing PMI printed at 53.9. Overall, economic releases were positive for the U.S. economy with manufacturing leading the way.
Australia reported that its trade surplus narrowed to AUD 1.38 million in November. Imports increased lead by capital investments in the mining sector while exports of natural resources declined on reduced demand from China. China is heading towards a slowdown as the global economy cools due to the crisis in Europe. At the same time consumer purchases declined. Traders on OpenBook are primarily short the AUDUSD with average limits at 1.0150 and stops at 1.0350.
The United Kingdom released several economic releases as well. The Services PMI rose to 54.0 in December from 52.1 in November. Construction PMI rose to 53.2. Mortgage approvals remained unchanged in November on account of weak consumer demand. Net mortgage lending rose 571 million Pounds in November and consumer credit increased by 394 million Pounds. The Bank of England reported that M4 money supply dropped by 3.7% in the last few months. Traders on OpenBook are primarily long the GBPUSD with average limits at 1.5600 and stops at 1.5400.
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