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Social trading is a social network service (SNS) trading platform where users can share their investment experience and knowledge. One of the notable features of social trading is that this platform allows users to imitate the transactions conducted by other traders simply by following them. However, finding and following expert traders is the key challenge of social trading. To this end, systems and methods have been developed to rank traders. One of the drawbacks of the conventional methods is that there is no financial theory to support them. In this paper, a novel ranking method to discover expert traders based on the portfolio theory, is proposed. The experimental results obtained with a real dataset demonstrate that this method is superior to conventional methods. In addition, the discovered expert traders can be enlisted to develop better portfolio constructions for any given risk level.