Traders should always know when they plan to enter or exit a trade before they execute. By using a stop loss effectively, a trader can minimize not only losses, but also secure profits. Make sure to define your strategy and plan ahead of time and you'll make sure to win the war.
With NAGA Trader you have full control over your money. With NAGA Trader you decide how much risk you take by defining your risk level. Furthermore you can always adjust the take profit or stop loss levels. You can also close trades without facing the risk to lose more than you are willing to risk. A proper risk management is the success formula of every profitable trader. Moreover, NAGA Trader will always inform you via smart push-messages.
First, you should be aware that NAGA Trader traders are exposed to risk. Although traders may have shown a great past performance, it does not mean that they will show the same performance in the future. Before you copy the trades of NAGA Trader traders, you should first try our Demo Account and test your chosen trades and strategy. Afterwards, you can start trading with small amounts, and when you are absolutely sure, invest larger amounts.
You should also be aware that your account might be massively leveraged depending on the leverage ratios of your chosen broker. Please remember that with an increased risk you could very quickly end up with a total loss.
What are the key figures for a proper risk analysis when copying others?
The following figures must be taken into account in your risk strategy because followers pay particular attention to them:
Accuracy: Which percentage of past trades were positive?
Rank: Which rank does the trader have in the “Leaderboard”?
Profit: How much profit did he/she make in the past?
It is very simple. No drawdowns, no volatility, no sharpe ratios and no other figures that nobody understands. Just a simple and transparent performance approach, which is clear to everybody.
And remember to set your Volume / Margin without exposing your trading account to a high leverage ratio.
By following trading signals from other people, you are naturally exposed to a certain degree of risk. If you copy a trader and this trader loses money, you also may lose if your trade has negative P/L.
We at NAGA Trader value the importance of a proper risk management. Hence, when you copy single trades through NAGA Trader App with your defined stop loss and defined take profit levels, extreme drawdowns cannot occur.
NAGA Trader offers you a great risk management tool which is a key to a sustainable trading success over the long run.