Celestino Brunetti · eToro

I’m Ilyas Abdul, a trader since 2020, and I want to share my firsthand experience of copying Celestino on eToro. In this review, I’ll delve into my journey over the period from 7th September to 5th January, covering the specifics of my investment, the realised profit, and the lessons learned.

In the following sections, I will outline the rationale behind my decision to copy Celestino and provide a comprehensive report on my overall experience throughout this period.

Over the course of almost four months, I navigated the markets alongside Celestino, resulting in a mere profit of 7.85 USD. If I was to summarise my experience in Pros and Cons it would be this

Pros:

1. Navigating Profits Despite Challenges:
   Despite noticeable differences between the profits I earned and those reported (blaming eToro’s data accuracy), the experience stayed in the green. Some credit goes to my resilience, but the trader’s long-term potential played a significant role too.
   
2. Open and Responsive Communication:
   One big positive was the ongoing chat with Celestino (using the comments wall). He’s quick to respond, making it feel like a team effort. This responsiveness helps get answers fast and creates a transparent vibe.
   
3. Steering Clear of Cryptocurrency:
   If you’re not keen on dealing with cryptocurrencies, Celestino’s trading strategy, free from crypto assets, is a plus. It gives a bit more choice for those with specific preferences or a particular risk appetite.
   
4. Guidance for Newbies:
   Celestino doesn’t just leave you hanging; he has a handy guide on how to copy, making it easier for beginners to jump into the world of copy trading. This newbie-friendly approach is gold for those taking their first steps in this trading landscape.

Cons:

1. Discrepancies in Profit Reporting:
   A bit of a downer was the noticeable gap between the actual profit I pocketed and what eToro’s reporting. Blame it on the platform’s data accuracy hiccups, not the trader. If you’re thinking of jumping on board, keep an eye on these quirks to keep your expectations grounded.
   
2. Underutilised Resources:
   Something I couldn’t ignore was the chunk of cash just chilling in the account—76.98% of my resources twiddling their thumbs. This stash of cash might cramp your style if you’re hoping for a more hands-on approach with your funds.
   
3. Irregular Updates:
   For those thinking of copying Celestino, be ready for updates on island time. While the guy’s still in the game, he’s not the most chatty, and the sporadic updates might not float everyone’s boat, especially if you’re after a steady stream of trading insights.
   
4. Language Barrier:
   Throw in a bit of a language challenge, thanks to Celestino’s non-native English. It didn’t totally throw a spanner in the works, but there were moments when the message got lost in translation. Something to keep on your radar if you’re not too keen on deciphering the occasional language hiccups

Is it Worth it for Future Copiers?

In weighing the goods and bads, future copiers should consider their risk tolerance, investment goals, and preferences. Celestino Brunetti’s trading strategy has demonstrated resilience in delivering profits despite external challenges. However, the reported profit discrepancies, underutilised resources, irregular updates, and language considerations should be factored into the decision-making process. For those seeking a collaborative and communicative trading experience with potential gains, Celestino’s profile presents an opportunity worth exploring, with the caveat of being cognizant of the platform’s data accuracy issues and occasional language barriers.

Every single month, the actual earnings lagged behind what was reported! Let’s ignore the first month when I started copying on 7th day of September. I still have 3 months of full experience.

I’ve asked eToro to explain this, different people came back to me with different answers. Also, I reserched this online and here is my findings on why this might be happening (I’m not 100% buying this though):

1. Timing Mix-Up:
   Maybe Celestino’s trades are happening at different times than what’s reported. The timing clash could be due to delays in copying or differences in how quickly the trades get executed.
   
2. Slippage and Market Stuff:
   Slippage, where the actual execution price doesn’t match what was expected, might be throwing off the actual earnings. Things like wild market swings or low trading volume could be causing this slippage.
   
3. Fees Sneak Attack:
   Fees could be hitting harder than we think. Depending on the fee setup, especially if there are hidden charges, it might be chipping away more from the profits than the reported values let on.
   
4. Copy Scaling Hiccups:
   Adjusting the size of copied trades might not be as smooth as it should be. Differences in the scaling process could be messing with the reported versus actual earnings.
   
5. Platform Lag:
   If there are delays or lags in the eToro platform, it could be messing with the timely execution of trades. This platform lag might be causing the actual earnings to fall behind the reported ones.
   
6. Data Drag:
   Slow updates or delays in getting the actual earnings figures could be a factor. If the platform takes its sweet time to catch up with what’s happening, copiers might not be seeing the real picture in real-time.
   
7. Market Shake-Ups:
   Quick changes in market conditions or unexpected events could be throwing a spanner in Celestino’s trading works. The live results might be swaying differently than what was predicted, causing a gap between reported and actual earnings.
   
   I was also thinking this whole thing could be down to some strategy quirks, you know, like glitches or limitations in Celestino’s trading style that become more obvious when you’re live copying. And there’s the possibility of some algorithm twists too. Celestino might be messing with the trading algorithm in real-time, and these on-the-fly adjustments could be the reason for the differences between what’s reported and what we’re actually pocketing. Funny thing is, I’ve noticed the same story when copying other traders too.

I’ve considered not just my own experiences in the last four months but also incorporated data from public sources (specifically eToro) to shape the following observations.

Risk Management:
While Celestino showcases a balanced risk appetite with an average risk score of 3 (sometimes 4), the dynamic nature of risk management demands ongoing adjustments. His commendable yearly max drawdown of -6.52% reflects a commitment to minimizing losses, yet a critical analysis is necessary to gauge how effectively he adapts his risk strategy to diverse market conditions.

Portfolio Diversity:
Strategically allocating funds across various assets, with a focus on indices (50.31%) and currencies (33.51%) for liquidity, Celestino’s approach prompts questions regarding the relatively lower exposure to stocks (7.44%) and commodities (8.38%). A deeper understanding of the rationale behind this allocation is essential for illuminating his decision-making process.

Trade Style:
Executing an impressive 21.09 trades per week, Celestino’s active approach suggests a dynamic trading style. However, the average holding time of 1.5 weeks raises concerns about the efficacy of short-term plays and strategic positions. A critical assessment is needed to align his focus on major instruments with current market conditions.

Top Traded Picks:

While the trader engages with major instruments above it’s essential to critically assess whether his focus on these assets aligns with the market’s current conditions. Analysing the rationale behind these choices and considering potential shifts in market trends could offer a more comprehensive evaluation.

Performance Check:
Celestino’s risk-reward ratio, boasting an average profit of +5.52% and an average loss of -22.1196, showcases a balanced approach. However, a nuanced evaluation requires a deeper dive into the specifics of his trades and how he navigates challenging market scenarios.

Communication & Transparency
Celestino’s ongoing chat through the comments wall is a significant positive. Celestino’s quick responses create a sense of teamwork, facilitating fast answers and fostering a transparent environment. However, updates on “island time” may disappoint those wanting consistent insights. The language barrier, due to Celestino’s non-native English, poses occasional challenges, potentially leading to message confusion for some traders..

In terms of education, the trader boasts an extensive background in software development, securing roles as a Senior Java Developer at Lynx S.p.A., a few other software related roles in Italy. Accumulating over 15 years in the software industry, Celestino’s skills encompass programming languages, debugging, and software development methodologies. However, it’s noteworthy that there’s no explicit mention of formal financial or investment-related education, hinting that his prowess in trading might be rooted more in hands-on experience than academic training.

When scrutinizing applied knowledge, Celestino outlines in his website a trading strategy that incorporates Dollar-Cost Averaging (DCA) and the Double Down technique. While the strategy’s general outline is provided, there’s a lack of specificity regarding market indicators, technical analysis, or fundamental analysis techniques. This leaves a degree of uncertainty regarding the depth of his market analysis skills, a critical aspect in navigating the complexities of financial markets.

What I observed is him actively promoting himself as the year-on-year top performer on eToro, while I am aware that platform performance might not comprehensively reflect an individual trader’s overall success. The idea of attracting users to copy him versus genuinely scaling his trading doesn’t sit well with me. I need to understand where the bottleneck is in trading more funds versus promoting eToro’s business, perhaps for tax advantage.

Another red flag is he admits to the constant need to monitor markets obsessively. Effective long-term trading requires not only profitability but also sustainability without inducing excessive stress. As a seasoned industry professional, I would question the viability of a strategy that necessitates such intensive monitoring and stress, as it may not align with the resilience needed for consistent success in the financial markets.

In conclusion, while the trader brings valuable experience from the software development realm, his lack of explicit financial education, the vagueness in certain aspects of his trading strategy, and potential stress-related concerns warrant careful consideration. This is one of the reasons why I ceased copying him. As a professional with an eye for risk management and sustainability, I would advise potential investors to thoroughly assess the trader’s performance over an extended period, seek clarity on risk management strategies, and evaluate the long-term viability of their trading approach before considering significant investments.

He exclusively features eToro in his reports and screenshots, without showcasing any other specific platforms.

7

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I also discovered his associated profiles.

Celestino has significantly grew his AUM in the last months, currently showing $5M+ thereform my recommendations will include some key changes or considerations:

1. Diversification:
   • Impact: A larger AUM often necessitates broader diversification to spread risk across different asset classes and instruments.
   • Reasoning: With a substantial amount of capital, it becomes challenging to invest in a limited number of assets without significantly influencing their prices. Diversification helps mitigate the impact of any single investment’s performance on the overall portfolio.
2. Risk Management:
   • Impact: Managing risk becomes more crucial as larger positions can lead to more significant losses in absolute terms.
   • Reasoning: With a large AUM, there is a greater need for sophisticated risk management strategies. This may involve using derivatives, setting stop-loss levels, or employing other risk mitigation techniques.
3. Liquidity Concerns:
   • Impact: Large trades can impact market liquidity, potentially causing slippage in execution.
   • Reasoning: Executing trades of substantial size may be challenging without affecting the market price. Celestino may need to consider the liquidity of the assets he’s trading and develop strategies to minimize the impact of large trades.
4. Market Impact:
   • Impact: The size of AUM can attract attention and may influence market sentiment and prices.
   • Reasoning: Celestino’s trades, especially in smaller or less liquid markets, could potentially impact the prices of the assets he’s trading. This requires careful execution planning and awareness of the market impact of his transactions.
5. Strategy Adjustment:
   • Impact: The strategy might need adjustment to accommodate the larger AUM.
   • Reasoning: A strategy that worked well with a smaller AUM might need modification to effectively handle the increased capital. This could involve adapting trade sizes, exploring new investment opportunities, or adjusting the overall investment approach.
6. Technology and Infrastructure:
   • Impact: Larger AUM may require more advanced technology and infrastructure.
   • Reasoning: Managing a large AUM efficiently often involves leveraging technology for trade execution, risk assessment, and portfolio management. Upgrading systems to handle the increased scale becomes essential.
7. Regulatory Compliance:
   • Impact: Regulatory compliance becomes more complex with larger AUM.
   • Reasoning: As AUM increases, regulatory scrutiny may intensify. Celestino would need to ensure compliance with relevant regulations, disclosure requirements, and reporting standards.
8. Client Communication:
   • Impact: Communication strategies may need adjustment.
   • Reasoning: Larger AUM often means more clients or stakeholders. Maintaining clear and transparent communication becomes critical to managing expectations and building trust.

In summary, the impact of a large AUM spans various aspects of investment management, from diversification and risk management to strategy adaptation and technological requirements. Successful management of a substantial AUM requires a holistic approach that addresses these considerations.

Celestino Brunetti · eToro

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