The Emergence of Copy Trading

By John Akwei, Data Scientist — Fiancia Limited UK, http://www.fiancia.io

Social Media combines with Internet Trading

Introduction

Internet Social Networking has lead to the phenomena of Social Trading. Social Trading allows individuals to copy the trading positions of reputable investors. Thereby, transferring the tasks of opening and managing trading positions to a central investor, whose combined strategies are accessible to a network of individuals seeking to benefit from the central Investor’s trading successes. The Copying Trader only needs to choose a Copied Trader, and the amount of funds the Copying Trader is willing to invest. The Copying Trader also has the ability to issue an individual Stop Loss Order, thereby setting an individual level of risk for the Copying Trader. Essentially, the investment portfolios of Copy Traders are investments in the financial analysis capabilities of prominent Copied Traders.

The Origin of Copy Trading

Before the internet, Investment Traders were able to subscribe to the newsletters of industry-wide recognized successful Traders. The Investor’s newsletters usually provided general investment advice, and reviews of investment instruments, allowing the subscribers insight into potentially gainful strategies. The availability of Cable Television in the 1980’s allowed for the first all-business television networks to broadcast to television viewers on a national scale. Investors then could combine subscribing to investment newsletters, with monitoring of business news on dedicated cable television channels.

Bulletin board inter-computer communications in the late 1980’s allowed for the publishing of investment advice in real time, and with two-way messaging. However, this mode of transmitting investment advice from guiding investors required monitoring in real-time. Email, beginning in the early 1990’s, allowed for the electronic publishing of newsletter-like investment advice, and feedback from investment email subscribers. Internet chat rooms also evolved the capabilities first advanced in computer bulletin boards, and provided a form of consensus generation combined with central guidance.

The First Automated Methods of Trading Replication

Real time, electronic forms of transmitting investment advice remained popular throughout the 1990’s, and into the turn of the century. The first form of Copy Trading emerged in 2005, with the first platforms for investors to publish their entire trading strategies online. The premise of these platforms was to enable “Mirror Trading”. Individual investors could study the trading strategies, and the results of trading strategies, online and synchronize their accounts with the trading strategy publishers. The published strategies of the first Mirror Trading platforms required approval before being made available to Mirror Trading customers.

The next Copy Trading platforms allowed any investor to publish their strategies, and financial results. For the first time, any investor could copy the trades of any other investor. The Social Media technology emerging around 2008, was tentatively used to augment Copy Trading, via the inclusion of comments, likes, ratings, and link sharing. Social media methods of trading can inversely generate possibly beneficial investment advice, via combining the strategies of many Social Traders into a median strategy, possible optimized for comparatively beneficial gains.

Modern Social Networks, and Copy Trading

By 2015, Social Networks had gained widespread acceptance in the general population, and had expanded to include mobility, localization, and multimedia capabilities. In order to reach the maximum numbers of income generating followers, merchants of information began relying on popular Social Media networks, (like Facebook, Twitter, and Youtube), to gain new customers and inform followers. Information published on the popular Social Media Networks, propagated rapidly with social, mobile, and localized networking, augmented by hashtag searching, and customer-curated lists of sources.

By 2012, studies of Copy Trading had shown that guided trading usually resulted in gains for the guided-trading customers. The effort to find the most optimal methods of Copy Trading began, influenced by the positive findings of scientific studies of Copy Trading.

The Innovation of Cryptocurrency Trading

Research into decentralized computing, beginning in the late 1990’s, lead to the concept of decentralized digital assets, or “Crypto-currency”. The first decentralized, (or “Blockchain”), cryptocurrency, Bitcoin, was published in 2009. Blockchain Cryptocurrency exists on a distributed ledger that is impervious to control by a central authority. Subsequent alternate cryptocurrencies, (or “Altcoins”), were published in order to offer features not provided by Bitcoin. The value of cryptocurrencies varies with the total node count of cryptocurrency buyers, and the total market capitalization of the cryptocurrency.

As Bitcoin, (and other cryptocurrencies), gained wider acceptance, the value of the digital asset holdings of cryptocurrency buyers increased dramatically. The limitations on acceptance of cryptocurrency was, however, influenced by volatility and the risk of computer hacking. Undaunted by the limited acceptance of the blockchain by the corporate world, trading of cryptocurrencies began gaining worldwide traction exponentially.

Cryptocurrency promises to eventually replace previous forms of monetary transfer, national currencies, stocks and bonds, startup funding, and internal currency handling within online software. Cryptocurrency will revolutionize finances in the same way the internet revolutionized media. The cycle of funding during the lifetimes of corporate entities will eventually rely greatly on cryptocurrency fundraising, and blockchain resource management. The first emergence of this phenomena is the new corporate investment vehicle of “ICOs”, or “Initial Coin Offerings”. ICOs could potential replace Seed Money, Venture Capital, Angel Investments, Initial Public Offerings, and traditional Stocks and Bonds.

Social Cryptocurrency Trading

By 2016, the simultaneous phenomenon of Cryptocurrency investment successes, and Social Media Marketing ubiquitousness, merged in the new trend of Social Trading via the following of Popular Traders on popular social media platforms. Cryptocurrency Trading allows for participation by individuals everywhere in the world, via the internet. Blockchain distributed computing enables democratization of crypto-economics, free from localized Authorities.

Because Automated Trading does not yet apply to Cryptocurrency economics in an optimal manner, crypto-traders now prefer to trade via selection of cryptocurrencies and ICOs with the highest potential of growth, and then wait for long-term gains over the course of months, (rather than micro-trading over the course of hours or minutes). Therefore, advice on cryptocurrencies derived from careful analysis, and business world experience, is in demand over the Internet.

Fiancia Ltd is introducing an innovative Copy Trading platform to connect major Social Media trading Influencers with Cryptocurrency Traders. In March 2018, Fiancia is having a Public Sale of the internal currency tokens, FIN. Traders will use FIN cryptocurrency to transact Copy Trading via desktop interface, or Fiancia’s mobile app. Fiancia is also pioneering the broadcasting of Cryptocurrency Trading information via the first ever Cryptocurrency TV channel. 2018 will represent the beginning of high capitalization personal trading of blockchain cryptocurrencies. Fiancia’s Social, (and Mobile), Copy Trading platform is the beginning of a new standard of Trading Platforms. Given the general rule that more data points lead to better results of prediction, the worldwide popularity of prominent Cryptocurrency Investors has started a new era of Copy Trading, now accessible to the entire World’s population.

Email: support@fiancia.io