Wisdom of some crowds: Predicting investors success in a social trading platform

Using data from a social-trading platform in which users allocate funds to investment "gurus" by following them, we identify a group of followers who systematically make following decisions that generate higher-than-average returns and maintain a higher-than-average investment portfolio consistently over time. The oracle followers strategy generates higher returns than other investment strategies such as following a the most popular gurus or following gurus randomly. We find that oracle are more diverse followers, make following decisions more frequently and have a longer life-time in the platform.