TraderWagon — Tips For Earning Consistent Profit!
TraderWagon is a platform that allows you to copy trades made by lead traders worldwide. However, copying a lead trader blindly can be risky and you may end up losing money instead of earning.
Today, I will try to give you some tips that may help you to find the best-performing lead trader. If you don’t have a TraderWagon account, you can create one using my referral link.
Set Stop Loss →
No matter how profitable and experienced a lead trader is, you should always set your own stop-loss because it just takes one bad trade to lose everything.
Some lead traders don’t use stop-loss and keep enough margin in their account, which helps them to hold losing positions for a week or even a month.
For example, you can see in the below screenshot. This trader is holding 10 short positions even after some of the trading pairs bounced 25–50%.
If you would have copied this trader around 2 months ago, you would have been liquidated by now.
On the other hand, if you would have copied this trader with your own stop-loss, your position would have been closed with a minor loss.
This is the reason, TraderWagon gives you the option to set Stop-Loss and Take-Profit targets.
TraderWagon uses portfolio margin balance to calculate the TP & SL Price.
For example, If you will start copying with 100 USDT and 5% Stop-Loss, the system will close the positions, when the portfolio margin balance reaches 95 USDT.
Note: If you will add more margin balance to your portfolio, TraderWagon will use the new total margin balance to calculate TP & SL. Also, Setting TP & SL is optional but I would recommend you to use SL at least.
MDD & Win Rate→
MDD and Win Rate is more important than ROI. Lead traders with higher ROI can earn you higher profit but Leader traders with better MDD and Win Rate can give you a consistent profit.
For example, you can see in the below screenshot. The 30 Day ROI of this trader is only 25%, which is average but when you will look at the MDD and Win Rate, you will notice that this trader's performance is far better than others.
This trader’s MDD is 33.44%, which means 33.44% is the largest loss this trader has experienced. For example, Suppose this trader’s portfolio margin balance is 100 USDT, which means his maximum loss in one trade is 33.44 USDT.
I know risking 33% in a single trade is a very bad idea but the MDD of other lead traders is 2 times higher than this trader. So considering the MDD of other lead traders, this leader trader is better.
You will also notice that this trader’s win rate is above 80%, which is very impressive. S/he is maintaining above 80% win rate in 30 Days, this means 8 out of 10 trades taken by this trader in the last 30 days were right.
You can also copy lead traders based on ROI and Total PNL but copying lead traders with better MDD and Win Rate will earn you consistent profit instead of more profit.
Trade History →
I would also recommend you check the trading history of lead traders before copying. Sometimes one good trade can hide the continued losing trade of lead traders.
Suppose a lead trader started trading with 1000 USDT and s/he lost 700 USDT in the next 10 days, and after a few days, s/he suddenly caught a very good trade and earned 1200 USDT using high leverage.
Considering the above example, the ROI, MDD, and Total PNL of this lead trader will look good but in reality, S/he made only one good trade till now.
For example, You can see in the below screenshot. This trader’s profit was below average but one day he made a profit of 1760 USDT, which pumped the ROI and PNL of this lead trader.
If you will copy lead traders without checking trade history, you might not earn enough profit.
Now, This article has come to an end. I hope you found this short article helpful. However, if you have any queries or questions, please ask in the comment section below.
Disclaimer: The information shared in the article/video isn’t financial, legal, tax, or any professional advice. The content of the article/video is solely my opinion, Do your own research before investing.
