How social trading revolutionises prop traders recruitment

At its core, the platform allows traders to follow one another and share tips all in a transparent way, linking to both Twitter and Facebook. At the same time, rookie traders are able to learn from more experienced traders, become part of successful trading strategies and make the most of the latest market data.

?Through TopTradr, you can make real trades using FXCM’s Trading Station platform,? Olden explains. ?As soon as your trade is registered on the platform, you can share and like trades as you would comment on a blog. TopTradr’s algorithm identifies your abilities, captures your performance, calculates your score and gives you a rank. The result is that it creates a leaderboard.?

The concept is simple. Those that continue to make profitable trades will steadily gain points and rise in the rankings. If you manage to squeeze your way into the top ten then you could stand to win the substantial premiums awarded to the trader of the week; but why give these traders that much money?

?We are effectively giving them our money because we believe in the system. By including social media, we are encouraging open communications between traders with the aim of creating more responsible and consistent traders. This is all based on the fact that on some platforms, you can risk everything, get a ridiculously lucky trade and shoot to the top of the leaderboard in the nick of time. That’s great and it’s how you’d win a contest, but you wouldn’t do that with real money.

Instead, we try to set up as many realistic barriers as we can. If you haven’t traded in 20 days then your average score lowers. If you have one lucky trade then you’ll get the points, but if the market goes against you then it negatively impacts your score. The winners are people who have done some good quality trading. They’ve essentially become ambassadors for TopTradr.?

With a leaderboard based on the TopTradr score favouring performance, risk responsible and consistent trading, TopTradr could become an opportunity for up and coming traders to showcase their skills to hedge fund companies. But Olden’s plans to make it more accessible for them to get into the industry don’t stop there.

?My big vision is that your TopTradr score would become a quoted reference, a measure of your ability to trade; like a trading Klout score, if you will. You could literally look at any trading individual and make an assessment on how good they are. They would have to work on maintaining that score, however. It would become a professional influence, a way to prove your credibility. It would effectively clean up the industry as we’d gain the very best traders and get rid of those who only talk the talk rather than walk the walk.?

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