5 Ways to Minimize Your Risks in Headway Copytrade
Every trading strategy has strengths and weaknesses. That’s why it’s important to mitigate your risks while also maximizing profits. Today, we’ll talk about how to minimize risks in Headway Copytrade.
What risks can you encounter while copytrading?
Although copytrading is a great avenue for passive income, it is not without risks. The trader you copy might experience a period of success, but their performance can deteriorate over time due to market changes, personal mistakes, or external factors.
But don’t worry, there are many solutions you can use to reduce your overall copytrading risks, and today we’ll explore some of them.
Solution 1: Follow multiple strategies
The most reliable way to minimize your risks in Copytrade is to follow multiple strategies. If one strategy underperforms, the others can help offset the impact, lowering the chance of substantial losses. Besides, multiple strategies can offer protection against one trader’s blind spots. As the saying goes, it takes a village!
You can follow several strategies using the same account. However, always remember to keep up with your account balance. If there are not enough funds in your account, the trades will simply not copy.
Solution 2: Follow strategies with a stable positive development
Another way to minimize your risks is to follow stable strategies. These are copytrading strategies that demonstrate positive performance within a considerable period of time.
The gain parameter is one way to find these strategies. But keep in mind that even new strategies can have a high gain and it doesn’t guarantee that they will perform well in the future. That’s why the best way to analyze a strategy’s performance is by looking at its performance chart. It gives you an opportunity to switch between multiple timeframes and study the development of the strategy since its creation.
Solution 3: Choose less risky strategies
Headway Copytrade allows you to filter strategies depending on their levels of risk. Risk is calculated based on the number of open positions and the capital invested in them. So if one trader puts 50% of their money into trades, they’re taking more risk than another trader who only puts 10% in.
To avoid additional risks, choose low-risk strategies. You can use our filter to avoid riskier strategies by checking the low risk option on the Investor Board.
Solution 4: Pay attention to a strategy’s active days
Active days represent the number of days during which the strategy owner has engaged in active trading. This parameter takes into account any day when the trader opens or closes at least one position.
The more active days a strategy has, the more data you have about its performance. If a strategy was created a long time ago but only has a handful of active days, you can’t make reliable conclusions about the trader’s success rate.
That’s why investing in a strategy with many active days protects you from risks. You can immediately see its profits, losses, and how it developed over time. Besides, when you invest in a strategy with many active days, you see the results of your investment faster. With an active strategy owner, you have active trades and understand their profitability immediately.
Solution 5: Adjust your copy proportion
The copy proportion is an essential parameter because it affects the volume of your positions. As a result, it also has an impact on the amount of your capital involved in each trade. The higher your proportion is, the more funds you put into each copied trade, so it will affect both your gains and potential losses.
That’s why your copy proportion can contribute to additional risks. If you think that your current copy proportion is too much for your balance, you can always change it on the strategy details page.
Minimize your risks with Headway Copytrade now!
With these tips in mind, you can start your copytrading journey right now. Look through the wide selection of strategies on the Investor Board, choose several strategies to follow, and enjoy your new passive income stream. Start now ⏩
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