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Show HN: Replicate the world's best stock investments

80 pointsby bevenkyalmost 10 years ago

27 comments

chiaroalmost 10 years ago
The voluntary gifts aspect is interesting. In the FAQ, there&#x27;s mention of the option to tip someone whose investments you&#x27;ve shadowed, if you&#x27;ve been successful. If you capitalise on this social, community aspect, I&#x27;d be interested in seeing what comes of this. Patreon-esque community involvement is pretty novel for the space, and if you could pull it off it would go a good way to humanizing what&#x27;s seen as a cold hyper-competitive space.<p>Because these things need a standard disclaimer: If you have 1000 people flipping a coin every six months or so, at the end of that 3 year slice, you&#x27;ll have ~15 people very proud of their coinflipping ability assuring everyone else of their judgement on the next flip. After all, their results speak for themselves.
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gravypodalmost 10 years ago
I can think of many ways to abuse this site[0], and that is just from an initial standpoint. This could be the next big SEC case waiting to happen.<p>Are there measures in place to prevent from such easy abuse?<p>[0] <a href="http:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Pump_and_dump" rel="nofollow">http:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Pump_and_dump</a> - This could be perpetrated on an entirely different scale with people seeking out the &quot;guidance&quot; of a few big players
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Avalaxyalmost 10 years ago
This is exactly what Etoro does. Etoro has many problems though. To name a few:<p>- Many traders will keep losing trades open indefinitely and only close their winning trades. This way they get a 100% success rate because all their realized trades were profitable. This also leads to huge realized profit percentages while the total value of their portfolio was just decreasing because of the losing trades.<p>- You start copying them later, so you won&#x27;t get all their trades. This means that your available balance percentage will be different than theirs, resulting in strange behavior when they up their stop loss with additional funds, whereas you don&#x27;t have any additional funds left. This also happens when they of you withdraw&#x2F;deposit funds.
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arielweisbergalmost 10 years ago
This is pretty interesting to me. Investing in strategies including automated trading strategies on some of the hosted platforms that are out there.<p>But... I am a Boglehead. It&#x27;s going to take a hello of a lot to pry me away from VTSAX and many many decades of history (that may or may not repeat).<p>I would only ever be interested if I could invest in a low cost way across ALL the strategies by market cap of assets held under each strategy.<p>Ideally I could invest across all the strategies not just at Instavest.<p>I&#x27;m the kind of guy who wants to buy a fund made up of every openly traded asset by market cap.
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gruezalmost 10 years ago
Why is it that I can&#x27;t see any details about the investors without logging in? The only thing I can see are the returns of 6 select investors, which is less than helpful. And I can&#x27;t just create a fake account either - all accounts need an initial transfer. From a site that gets paid based on the number signups, this leaves a bad taste in my mouth.
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mckossalmost 10 years ago
I would worry about lead investors front running their trades; its pretty easy to make money in the market if you can get a large number of people copying your trades AFTER you make your own.
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mpdehaan2almost 10 years ago
While it&#x27;s an interesting idea, it seems like this is suggesting trying to copy someone&#x27;s short term stock wins. The current page shows someone (6 random faces, where you can&#x27;t click on details without signup) making some alledly good gains over a couple of years with an unknown amount of money. (another post says you can&#x27;t signup without a money transfer? yikes!)<p>As I understand it, you want a predictable gain year to year over a long haul. A three-year span where you gain a large percentage, offset by a large drop (which is possible if investing -- aka 2000-era tech bubble crash), results in you having significantly less money than a more subtle, even, diversified rate. Over the long haul, you may lose a lot of money by having a lot of volatility, or not gain as much. This is not to say you must choose very conservative investments, but this is why diversity in investing is useful.<p>I also worry that the site showcases people who made, say, 100%, by a limited number of investments over a short term. There&#x27;s nothing saying these investments will hold over the long term, which means that following them is essentially random. There&#x27;s also a bit of danger in investing in just what you know about, for instance, say you really follow donuts.<p>Various mutual funds seem unexciting because they don&#x27;t offer &quot;quintuple your money&quot; in N months, but you&#x27;ll end up with a lot of money in the end if you make regular investments.<p>This doesn&#x27;t just have to be your 401k, it could be an IRA (if you qualify&#x2F;etc), a combination or both, or some investment on top.<p>Obviously, a lot of people have made a lot of money investing in very specific stocks, but there&#x27;s nothing to say the past history in investing in those stocks foreshadows future history, and I think the site owes people a bit of education about that, especially younger folks.<p>You may also wish to speak to a financial advisor.
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kirpekaralmost 10 years ago
In the active v&#x2F;s passive debate it has now become widely clear that passive wins ALL the time when controlled for risk.<p>I wonder what the market for such a product is compared to main stream actively managed funds. Why should I choose some unknown &quot;expert&quot; off the Internet instead of say Bill Gross, Peter Lynch or John Neff?
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bdkoepkealmost 10 years ago
How are you controlling for survivor bias?<p>Unless these investors are highly leveraged, have insider information, or are simply &#x27;lucky&#x27; (or a combination of all three) I would assume survivor bias... The best proprietary firms in the world don&#x27;t make 50% per year...
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shakilalmost 10 years ago
The &quot;world&#x27;s best investments&quot;? From what I can tell you can only replicate what others are doing on your site right?
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bcainealmost 10 years ago
How is this different from Covester (<a href="http:&#x2F;&#x2F;covestor.com&#x2F;" rel="nofollow">http:&#x2F;&#x2F;covestor.com&#x2F;</a>), which has been around (and seemingly struggling) for awhile?
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btianalmost 10 years ago
&gt; Our team includes alumni from the U.S. Department of the Treasury, Goldman Sachs, Braintree, and Oaktree Capital Management.<p>Where is the team page with their names and bio?
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jlatibonitealmost 10 years ago
Sounds awefully familiar to DittoTrade (<a href="http:&#x2F;&#x2F;www.dittotrade.com" rel="nofollow">http:&#x2F;&#x2F;www.dittotrade.com</a>)
brentisalmost 10 years ago
FYI. Your site is missing some key credibility elements that is hurting your adoption rate. You are asking people to blindly commit money to something without passing the critical trust measures. This site could be a phishing site at worst.<p>You tried the simple Robinhood approach, but you need to give much more detail than them IMO.<p>You can email me if you want more feedback. Brent at Mometic.com
biotalmost 10 years ago
I&#x27;ve seen a few platforms like this and they&#x27;re US only. Anyone aware of one that supports Canadian investors?
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ravenkatalmost 10 years ago
Also, Why does it require me to be an US citizen?
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the_gastropodalmost 10 years ago
Shame on you guys. Perpetuating the notion that &quot;experts&quot; can consistently beat the market is criminal. Instavest appears to be a typical sleazy financial business capitalizing on misinformed customers.
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inthewoodsalmost 10 years ago
Interesting - but I&#x27;m more interested in tracking investors with a longer track record&#x2F;AUM ala <a href="http:&#x2F;&#x2F;www.alphaclone.com" rel="nofollow">http:&#x2F;&#x2F;www.alphaclone.com</a>
esusatyoalmost 10 years ago
I hate it when sign up forms are very US-centric. Not allowing me to input 4 digit ZIP codes, entering birth date in US format, and more.<p>It&#x27;s 2015. Everyone should be designing websites with other countries in mind.
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tuxetuxealmost 10 years ago
Cool!<p>But i would like to have it integrated with other brokers (robinhood!).<p>BTW: this is very similar to <a href="https:&#x2F;&#x2F;zercatto.com" rel="nofollow">https:&#x2F;&#x2F;zercatto.com</a> , no?
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BjoernKWalmost 10 years ago
Stock investments depend on the right timing a lot. Something that was a successful strategy in the past might not be so for the future.
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codingdavealmost 10 years ago
A lot of the criticisms and concerns in the comments seem completely valid... but in my mind, this is just one extreme of the risk&#x2F;reward decision. This is high risk, high reward. Much higher risk than I want to partake in, to be sure, but I can see playing this game if they can afford that much risk.
facepalmalmost 10 years ago
&quot;Earn profits by syncing your trades to the lead investor.&quot;<p>So they always make profits? That&#x27;s very impressive.
theaccordancealmost 10 years ago
The whole taking part in trades by a lead trader is nothing new. I previously worked for a FINRA licensed broker who&#x27;s business model was exactly this.<p>Word of advice: Double check that you&#x27;re not infringing on any patents.
grdvnlalmost 10 years ago
I was referred to a similar website, when I share this with my co-worker.<p><a href="https:&#x2F;&#x2F;www.motifinvesting.com&#x2F;motifs#catalog=our" rel="nofollow">https:&#x2F;&#x2F;www.motifinvesting.com&#x2F;motifs#catalog=our</a>
nilsjuenemannalmost 10 years ago
Investing directly in the market (via EFT) is always a good idea. Look at this chart, percentage change of S&amp;P 600 SPY EFT in the last 3y. 60% increase.<p><a href="https:&#x2F;&#x2F;www.tradingview.com&#x2F;x&#x2F;r6ahpcAy&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.tradingview.com&#x2F;x&#x2F;r6ahpcAy&#x2F;</a><p>If your timeframe is long, buy &amp; hold is alaways a good strategy.
bottled_poealmost 10 years ago
Ideas like this one smell of ponzi schemes. If this method were really a profitable idea they would not share it.
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