Tuning' Social Networks Improves Financial Performance on eToro Social Investment Netwo... - 0 views
-
Leonardo Gottems on 09 May 12Researchers at the MIT today revealed the results of research on social trading behaviour within the eToro investment network, that demonstrated higher gains for financial traders that responded to copy trading recommendations. According to MIT researcher Dr. Yaniv Altshuler's research, providing the name of a specific `guru' to copy enabled online traders to uplift earnings by 6-10% compared with trades used without social networks and 4% when compared with unguided copying where copied gurus were selected without the benefit of a specific recommendation. This research suggests that "tuning" social trading networks by providing carefully selected copy recommendations can increase gains and boosts average returns per user, while preventing "bubbles" in the market