5 More Tips for Maximizing Profits With Covesting On Prime XBT
This guide is sponsored by Prime XBT, the leading Bitcoin-based margin trading platform. All links to Prime XBT in this guide are referral links.
Covesting is the popular copy trading service available on Prime XBT that allows you to hire and manage your own team of traders to work for you 24/7.
Since our previous article, 7 Tips For Successful Hands-Free Trading With Covesting On PrimeXBT, several improvements have been made to the platform to make it safer and easier to profit from Covesting.
In this article, we will go over several new tips and tricks for optimizing your trading experience and maximizing your chances of success with the updated Covesting module.
Manage Risk With Stop Losses
The first and arguably most important new feature is the Stop Loss. It is now possible to manage risks by telling the system to automatically close your following when your Total Profit reaches a certain percentage.
Set a negative stop loss right after following a strategy to limit your risk. Once your following is in profit, you can come back and adjust this stop loss, raising it to a positive percentage.
Due to volatility, the actual profit you get after your following closes may be a little less, so be sure to leave a little wiggle room!
Use Badges to Filter Strategies
Some of the strategies now have some badges added behind their names to help you quickly identify managers who could potentially be more trustworthy.
The blue check mark behind the strategy’s name shows that the manager has passed a KYC check to verify their ID.
The number behind some strategy names is the Strategy Grade. This indicates that the manager has locked a certain amount of equity in order to increase their Followers’ Equity Cap. The higher the number, the more personal funds the manager has locked up. Additional KYC and/or proof of relevant experience may also be required for higher grades.
This is an easy way to quickly determine whether the manager has any skin in the game. A manager who has put a lot of their own funds at risk is more likely to be careful with their trades than a manager who has little or nothing at risk.
Strategies with a verified identity and a high Strategy Grade can be great candidates if you are looking for a new strategy to start following.
Taking Partial Profits Without Fully Leaving A Strategy
To encourage strategy diversification and reduce the risk of large amounts of capital being managed by traders with nothing at stake, a Followers’ Equity Cap was introduced.
This cap limits the amount of initial equity that can follow each strategy. Once the combined initial equity of all followers reaches this cap, new followings are disabled until some followers stop their followings or the manager locks in more equity to increase the previously mentioned Strategy Grade.
While this new limit helps promote strategy diversification and reduces risk for followers, it also means that those who stop following a high performing strategy to secure profits may find themselves unable to reenter.
An easy away to get around this limitation is to take the equity you wish to use with a strategy, split it, and follow the same strategy multiple times.
For example, if you plan to follow a strategy with 1 BTC, you could split it into five followings of 0.2 BTC each. Now when you want to take profit, you can simply close only some of them for partial profit taking while still remaining invested in your favorite strategy.
Unlock Discounts with the $COV Token
Covesting currently charges a 1% entry fee when you follow a strategy, as well as a variable success fee (25–40%) when you stop following a strategy while in profit.
These fees can be removed or reduced with a small fee, calculated in USD and paid using the $COV token. BTC can also be converted to the $COV token during activation to complete your purchase.
Activating the profit fee increase will reduce 5% of the platform fee that is normally charged when you stop following a strategy in profit. This fee is reduced further if you start following with a greater amount of capital.
Note that this discount applies to any strategies that you start following within a 30 day period after activation. This means that you cannot use the platform fee reduction for strategies you have already entered. However, strategies that you enter during these 30 days will continue to keep their reduced platform fee until you stop following them.
The 1% fee charged each time you follow a strategy can be removed for 30 days by paying $50 in $COV before you start your following.
If you plan to start following strategies in the next 30 days with capital that is worth more than $5000, purchasing this discount can save you a lot in entry fees. This does not mean you need to have $5000 for the fee to make sense. Even a trader with $500 who starts and stops following strategies more than 10 times in a month can benefit from this reduced fee.
Social Links
Managers now have the ability to add social media links to their strategy descriptions. Follow these links to collect more data about the manager before deciding whether to follow them.
Check to see if the trader’s Twitter account has a history of posting profitable trade ideas, a high follower count, or if their posts get a lot of genuine responses from other Twitter users.
Some managers have a Telegram channel where they communicate with their followers. Look for traders who provide regular, transparent updates and answer questions promptly. Take the opportunity to ask them any questions you may have about their trading style, strategy, or background.
Conclusion
Covesting is a great way to profit from the market without having to study charts all day. Experienced traders can also use Covesting to get additional revenue from their expertise.
The platform continues to work on new updates to help improve the experience and maximize profits for both strategy followers and managers.
To get started now, sign up at PrimeXBT to get access to the Covesting Module, as well as leveraged trading on many markets, including crypto, stock indices, commodities, and forex.
