How to choose the right trader for Mirror TradingAug 30, 2019
Mirror Trading is an investment tool designed to help earn in the cryptocurrency market without engaging in independent trading. To start using the Mirror Trading function, you need to choose a trader in the FUMGO trading terminal, subscribe to them and set your transaction limits. After that, the terminal will automatically copy the trader’s orders to your account on the exchange, opening and closing positions on your account. Transactions are carried out in a volume that is calculated in proportion to the balance of the trader, optionally taking into account the limits you have set. You do not need a separate FUMGO account. Your funds are always in your account on the exchange that you connected to the FUMGO terminal through API keys.
At FUMGO, only selected professional traders are represented, who trade with, and risk their own money to earn money. When choosing a trader, we recommend paying attention to his or her statistics and performance indicators at FUMGO. The more successful the trader’s previous transactions, the higher these rates.
Here are some pointers that will help you evaluate and choose the trader that best fits your goals:
- The number of subscribers: the number of users that subscribed to the trader and follow his or her trading strategies.
- An average profit per order: an average return per transaction.
- Accuracy indicator: the ratio between money-making vs. money-losing orders. This number shows how successful the trader’s transactions are, and how accurate his strategy is. If the trader’s accuracy is below 50%, that means that the number of money-losing transactions is greater than the number of money-making transactions. However, this does not mean that the trader is in the red: with one good order they may cover all of their earlier losses.
- The number of open transactions: the number of the trader’s open positions. An active trader will always try to have several open orders, if they intend to earn on a changing market. If a trader has many open orders, it speaks to their great level of activity.
- Closed transactions: the number of orders closed by the trader. This indicator is just as important as the Accuracy. If the trader has many closed orders, and if their accuracy is high, it means that they are a great professional.
- The trader’s annual profit: the trader’s annual profit on the platform over the last year. Listed as a percentage.
- Rating: an aggregated indicator based on the balance of the above 6 metrics. The higher the trader’s rating the better his strategies are.
- Risk level: an indicator of the level of risk of the trader’s transactions. This indicator will be LOW, if the trader is not too keen on taking risks and does not use strategies that can result in great loses. On the other hand, when mirroring the trades of a trader with HIGH risk indicator, you can earn more but also lose more.