Covesting Strategy Manager Demonstrates Why Proper Risk Management Is Necessary

What goes up, must come down is how the saying goes. The bigger they are, the harder they fall is also another popular idiom that anyone can recall having heard. Yet there’s no better example than a recent story involving a Covesting strategy manager who has fallen from grace and suffered dramatic losses after being among the most successful strategy managers in the history of the peer-to-peer trading platform.

The situation is also a reminder that even the hottest win streaks eventually turn cold, and profits can quickly turn into sizable losses that get cocky and don’t consider proper risk management strategies. Here is more about the painful situation as well as information about the trader’s compelling comeback and how to avoid falling into the same trap in the future.

Covesting Strategy Manager Leaves Somber Message After Losing Streak


“Dear followers, sorry for the bad period. I continue to trade and believe this is not the end of a wonderful story. I’m sorry about this minus at the moment I can see the statistics of realized profit and say once again sorry for the current minus and remember the big old gains.”

The above message reads as the description of a highly ranked Covesting strategy manager. As a top ranked trader, it seems illogical to be issuing an apology letter, but the message is only one chapter in a long story full of wild twists and turns.

The story started in early June, and by the time July rolled around, had turned into one of the greatest success stories of our time. During the most powerful crypto bull market ever, one bold strategy manager went against the crowd with the short selling of Bitcoin, which led to more than 30,000% total profits in almost no time flat.

Total profit levels for the rest of July while Bitcoin and the rest of crypto traded sideways. The little gains this strategy manager made suggested they knew their stuff, having seen the big reversal coming when others didn’t and not getting shaken out during the sideways phase.

Greed To Fear: From 30,000% Profits To Under 1,000% ROI


Greed is one of the strongest emotions humans face off against – fear is the other. No emotion compels people into action more than fear and greed, and it often leads to failure. And that is exactly what happened with this high performing strategy manager, who failed to close out their positions in profit, and added to a losing position. The result was substantial losses for themselves, and their followers.

Using Covesting anyone can become a strategy manager or a follower. Followers copy the trades of strategy managers who are ranked in a global leaderboard system. At 30,000% total profits, this particular strategy manager lured in a large number of followers, who were ultimately burned by the situation.

However, not all of them suffered losses. Covesting on PrimeXBT has recently rolled out a stop loss and take profit system for followers, so they can manage their positions with strategy managers like they would long or short positions. By setting a stop loss, there is less risk of a massive drawdown like what many followers suffered through this strategy manager. And by taking profit, any follower could have secured a portion of the 30,000% total profits. But greed even got the best of the followers too who refused to close out in profit or didn’t take the time to set a proper stop loss.


Strategy Manager Stages Incredible Comeback

Even with such a fall from the top in terms of total unrealized profits lost, the strategy manager themselves’ overall performance is so strong that they held onto the number two spot in the Covesting leaderboards with more than 870% total profits.

Rather than continuing to add to shorts, which got the strategy manager in trouble in the first place, they must have gone with the trend and are profiting from the recent Bitcoin rally. Considering how much the cryptocurrency could climb, the strategy manager could also claw their way back to number one in no time at all.

Trading with the trend is recommended, as there is less risk of opposing market forces getting the best of you. Going against the trend can lead to enormous gains as this trader has shown, but can leave far too much risk on the line. With such risk comes the potential for significant loss. Striking a balance between risk and reward is the key to capital management.

How Covesting Followers Can Protect Against Dramatic Twists Of Fate

Covesting followers can again protect themselves by taking advantage of stop loss and take profit tools, but there are other ways that followers can keep risk to a minimum while still keeping reward high.

Rather than going all in on one strategy on a hot streak, spreading capital around across multiple strategy managers is one way to diversify capital and reduce risk. This can also have a spillover effect of greater profits, statistics show.

Finally, any followers can look for a strategy manager who has all five stars unlocked. Each star of the five-star system denotes a strict adherence to certain risk or success parameters. For example, strategy managers must meet a certain level of margin allocation for one of the five stars to ensure they aren’t putting too much capital on the line or taking too risky of positions.

Other success and risk metrics are available for anyone to view within the fully transparent global Covesting leaderboards. Followers can use this vital intel to select which strategies best suit their needs and ambitions. For even more insight, there is also a Telegram community to see a different side of a strategy manager potentially.

The Covesting copy trading module is available exclusively at the award winning margin trading platform PrimeXBT. Covesting strategy managers have access to all the advanced trading tools offered by the platform, including long and short positions, stop loss orders, technical analysis tools, and much more.


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