The Covesting copy trading module has announced the arrival of a new update that features a feature to help followers secure profits and manage their capital. This new feature is reminiscent of one of the most attractive features on PrimeXBT’s trading platform, where the Covesting module is located.
The new Take Profit function ensures that any unrealized ROI from successful strategy follow-ups can be guaranteed, all without having to completely stop following the strategy. The latter feature adds more flexibility to the Covesting ecosystem and increases overall profitability for users; See how to use it and also some important details to consider.
Covesting Copy Trading: made for all trading levels
The Covesting copy trading module is designed to connect followers and strategy managers through a peer-to-peer trading community, bringing a wide range of benefits to traders of all skill levels.
Newcomers to the market who are unfamiliar with technical analysis or risk management can learn without suffering initial losses and instead become followers. Expert traders can become strategy managers for followers to deposit capital. Followers earn money by copying successful trades made by the strategy manager, and the strategy manager receives a share of the profits generated from the followers’ capital.
New traders are often easily susceptible to emotions such as fear and greed, and this applies even to followers of leading Covesting strategies. Even though the follower may use a variety of risk and success metrics from the completely transparent rating system, there is always the risk that a strategy manager will record a loss or have a rare losing streak.
The Take Profit function is announced for the Covesting module
To avoid unwanted losses, Covesting added the Stop Loss feature for followers. The Covesting team periodically modifies the copy trading module and trading conditions with community-friendly improvements. For example, in the past, they’ve added limits to a follower’s initial capital to prevent a strategy from taking too much risk, and they’ve developed a five-star rating system that specifically focuses on risk allocation and leverage.
Now they have just launched a new function, the Take Profit order, which is essentially the opposite of a Stop Loss and closes a position at a profit when a specific price is reached. It’s yet another example of the platform that puts its users first and ensures they’re equipped for success and security.
Take Profit orders work in a similar way as they do in margin trading on PrimeXBT, guaranteeing profits. There, the advanced trading tool closes a profitable position, long or short, when a target is reached. Instead, the Take Profit function in Covesting allows a follower to profit from a strategy they follow while continuing to follow that strategy and potentially losing their place as a follower.
Under normal circumstances, when a follower stops following a strategy, he leaves a capital position for another follower to join. If the strategy fills capacity again, there is no way to start following it until more space is made available. This resulted in followers sticking to strategies longer than they would have liked or leaving profits on the table that eventually disappeared when the market changed.
Securing profits on a regular basis will ensure that followers increase their capital and are exposed to less risk due to the markets or the strategy manager himself.
Take Profit orders guarantee profits and their place in strategy
The Covesting module software does all the work for both parties: follower and strategy manager. As soon as the strategy makes a profit of +5% or more, the Take Profit function is activated. A follower can reserve these gains while following the strategy entirely, and this also benefits the strategy manager.
The way it works involves the Covesting module immediately closing the track, reserving the earnings in the account’s wallet, then instantly reopening a new track with a fresh start. During all this time, the system maintains the follower’s place in the strategy, so that there is no longer the risk of losing your share with the best of the best. There is also less risk of returns disappearing when things start to go wrong.
Take Profit orders also benefit the strategy manager because when the follower makes a profit, all commission fees from the strategy manager are also collected and rewarded. This allows the strategy manager to generate capital more quickly and achieve a higher level of initial follower capitalization.
The only downside to the feature is that re-entry into the new capital requires another 1% entry fee for the follower, but it’s worth the admission price to follow the correct long-term strategy, and the fee can be removed entirely with any one of the VOC staking membership levels.
The feature is already active in the Covesting module on PrimeXBT. To learn more about the function, the company has published a guide on the subject in PrimeXBT’s help center.