Comment on Opentrade - learn following star traders

Prashant Warrier commented on 13 Jan 2016, 10:40 AM

Dear Anonymous,

First of all, By posting this as anonymous, you make your post less credible. Your views and perspective are welcome and we respect it. But i beg to differ for a couple of reasons:
1) You assume that traders will follow this trade blindly. While this should ideally happen for their own benefit, there are some key human elements such as emotions, individual personality that play the biggest role in trading…..My poison can be your medicine in trading. Plus the number of people following are not likely to build up enough volume to be able to move markets or trouble market makers.

2) All brokerages will automatically have the ability to slice and dice your data anyway they want. It is just a matter of running a few reports. So it is not unique here…..If you want that kind of protection, you will probably need to be a direct member of the exchange….Also trading is such a random activity that 2 star traders may be in completely opposite positions and still making money based on the strategies they deploy…..There are too many variables for a brokerage house to depend on star traders for front running or leveraging. The way i see it, this is a risk that you would carry but it is a risk that i wouldnt bother about…..My positions are highly insignificant compared to the market (Though i dream that someday i could move markets:)) ….

I think this is a great innovative idea from Zerodha……Yes, it is a good start and ofcourse based on many suggestions above, it will have room for improvement. So full marks there…….

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