Covesting announces new Take Profit feature to manage profitable strategy performance
According to a new announcement, the Covesting copy trading module has received an update debuting a new feature that assists followers with securing profits and capital management. The feature is reminiscent of one of the more compelling features of the PrimeXBT trading platform, where the Covesting copy trading module resides.
The new “Take Profit” feature ensures that any unrealized ROI built up from successful strategy followings can be secured – all without having to completely stop following the strategy. The latest feature adds more flexibility to the Covesting ecosystem and boosts overall profitability for users – here’s how, as well as some important details to note.
Covesting Copy Trading: Made For All Skill Levels
The Covesting copy trading module is designed to connect followers and strategy managers through a peer-to-peer trading community, providing a wealth of benefits to traders of all skill levels.
Newcomers to the market who aren’t familiar with technical analysis or risk management can learn without suffering early losses and instead become followers. Skilled traders can become strategy managers for followers to put capital behind. Followers make money by copying successful trades that the strategy manager makes, and the strategy manager themselves get a cut from the follower equity.
New traders are often easily susceptible to emotions like fear and greed, and this even applies to followers of top strategies on Covesting. Even though the follower can use a variety of risk and success metrics from the fully transparent leaderboard system, there is always the risk of a strategy manager booking a loss or potentially going on a rare losing streak.
Take Profit Feature Announced For Covesting Module
To prevent unwanted drawdowns, Covesting added a Stop Loss feature for followings. The Covesting team regularly makes modifications to the copy trading module and trading conditions that best serve the community. For example, they’ve also in the past added limits to Initial Follower’s Equity to prevent a strategy from taking on too much risk, and they’ve developed a five-star rating system that focuses specifically on risk and margin allocation.
Now they’ve just launched a brand new feature, the Take Profit order, which is essentially the opposite of a Stop Loss and closes a position in profit when a specified price is reached. It is yet another example of the platform putting its users first and ensuring they are equipped for success and safety.
Take Profit orders work somewhat similarly to how they do in the regular PrimeXBT margin trading environment, by securing profits. There, the advanced trading tool closes a profitable position – long or short – when a target is reached. The Take Profit feature in Covesting instead allows a follower to book profits from a strategy they follow without stopping following that strategy and potentially losing their slot as a follower.
In normal circumstances, when a follower stops following a strategy that is at capacity of initial follower’s equity, it opens up enough equity for another follower to get in. If the strategy is filled back up to capacity, there’s no way to begin following again until more space opens. This resulted in followers sticking with strategies longer than they would otherwise like to or leaving profits on the table that ultimately disappeared when the market turned around.
Securing profits regularly will ensure that followers are growing their capital and are exposed to less risk due to markets or the strategy manager themselves.
Take Profit Orders Secure Profit And Strategy Following Slot
The Covesting module software does all the work for both parties – follower and strategy manager. Once a strategy following has achieved +5% or higher profit, the Take Profit feature becomes active. A follower can book those profits without stopping the follower completely and it even benefits the strategy manager as well.
The way it works involves the Covesting module immediately closing out the following, booking profits to the account wallet, then instantly reopening a new following with a fresh start. All during this time, the system holds the follower’s spot with the strategy, so there’s no longer a risk of losing a slot with the best of the best. There’s also less risk of returns disappearing when things begin to go wrong.
Take Profit orders also benefit the strategy manager also because when the follower takes profit, all strategy manager fee commissions are also collected and awarded. This allows the strategy manager to build capital faster and reach a higher level of initial follower’s equity cap.
The only downfall to the feature is that reentering the following results in another 1% entry fee for the follower, but it is worth the price of admission to hang onto the right strategy for the long haul, and the fee can be eliminated entirely with any of the COV staking membership levels.
The feature is already now active in the Covesting module on PrimeXBT. To learn more about the feature, the company has released a guide on the topic within the PrimeXBT help center.
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