Covesting is a new peer-to-peer copy trading platform that recently made its debut on PrimeXBT after an extended beta phase. During both the official rollout and the beta period, traders utilized various methods to develop their strategies and reputation, and demonstrate their skills to the trading community.
Results varied just as widely, with some risk-taking traders racking up ROI rapidly, while others took a slow and steady approach for safe and sound risk management. Whatever the strategy manager ultimately decides to apply will be put to the test dynamically for all to see, thanks to the fully transparent Covesting rating system.
The metrics and five-star ratings provide potential followers with all the decision-making details they need to select the right strategy for them. Here are some essential tips on how to use the Covesting rating system and all the information it provides to pick the ideal strategy to follow.
Watch and learn: Studying stats and social communities to spot winning strategies
Those new to trading are often eager to get started and overtrade. Experienced traders tell novices to slow down and be patient to find the right trade and find the perfect entry point before taking a position.
Jumping the gun and selecting a strategy right away can be just as quickly detrimental to a new investor’s capital. Traders aren’t flawless, and even the most skilled sometimes stack up losses. Watching from the sidelines and taking in not only how traders react to the market, but how they manage risk and respond to losses can help spot winners in a sea of competition.
Consider also registering for the Covesting trading community on Telegram, where some of the platform’s traders discuss their thoughts behind strategies that can provide added comfort and confidence before allocating any equity and following a strategy.
Find strategies with ample following and trading career
Not all metrics are as apparent to overall success as ROI or win:loss ratio. Strategies, for example, with more massive followings and more time trading on the Covesting platform, are often more trustworthy and show a track record of successfully bringing profits to strategy followers. If not, followers would ditch the strategy for another, more profitable manager, and move their capital along accordingly.
Move past any strategies that don’t take margin allocation seriously
It’s also vital to move past any strategies that regularly use a large share of margin. At times, everyone finds themselves more overexposed than they perhaps expected and move some margin around to protect a position. Rare instances can be forgiven. However, those that regularly do this are clearly risk-takers and don’t take their own equity seriously, let alone their followers.
Seek Out Strategies With Steady Positive Performance
Profits, in the end, are what matter the most. And the next most important factor, as discussed, is risk management. But how those profits were achieved is equally critical.
If an entire portion of a follower’s ROI results from one big winning trade, it doesn’t necessarily mean that they will continue winning big with frequency. Instead, look for strategies that show steady and stable positive performance over time, rather than infrequent wins that quickly turn into losses.
When In Doubt: Rely On The Powerful Five-Star Rating System
Last but certainly not least, when all else fails, and you’re not certain which strategies are worth following, then its time to look closely at the Covesting built-in five-star rating system.
The fully transparent system provides a variety of significant risk and win metrics and further breaks down key requirements that must be met and maintained in order to achieve each star rating.
Strategies must meet a minimum deposit of 0.5 BTC in manager equity to earn one star, however, that equity can be earned through trading as well for those that want to start off smaller. A second star is awarded to those who have that trade at least 30 out of 60 of the past trading days, and a third is given for those with at least 50 BTC turnover. These three stars alone are designed to ensure traders demonstrate at least some level of trading activity and commitment level to trading regularly.
Another star is provided for any traders skilled enough and exhibiting strict risk management strategies and can show a win:loss ratio of 70:30. The final star is for traders that keep their margin allocation to 60% or above, to ensure no five-star trader is ever too much of a risk-taker, putting follower funds at risk.
While the five-star rating system is a great feature, complete with a number of filters to find the best strategy to suit your needs, it doesn’t eliminate all risk. It is still the follower’s responsibility to regularly check the performance of strategies and capital, utilizing the tips provided here in this how-to guide.
Statistics are updated dynamically every ten minutes, so it is crucial to check back regularly and ensure not only strategy performance is high, but that your capital is hard at work for you.
Follow The Right Strategy For You On Covesting At PrimeXBT
Paying careful attention to these critical factors, and the wealth of information available at a follower’s fingertips significantly improves the success rate of selecting a profitable strategy that consistently brings a positive ROI and daily profit.
The Covesting copy trading platform doesn’t just connect new traders or investors with little intention to trade with skilled strategy managers. It is also a database full of dynamically updated trader data that can fuel decisions about what strategies to follow.
Covesting is available only at PrimeXBT, an award-winning cryptocurrency margin trading platform that also offers CFDs on stock indices, gold and oil trading, forex currencies, and much more. Register today, and check out the five-star rating system to discover all the most important metrics to make sure you select the ideal strategy for you.
