The newly announced Covesting feature will help traders make more profits

Newly announced Covesting feature will help traders make more profits - Picture2

Covesting, the European DLT developer known for its B2B software solutions and its partnership with PrimeXBT, announced a new feature in Coovesting's copy trading module that helps traders, and more specifically followers, take a good chunk of their unrealized earnings.

Here's the full rundown on what the new Take Profit feature entails and how followers and even strategy managers can benefit and the ecosystem will thrive.

Profits only matter when they see them

The best traders know that the number of winning positions does not matter if the profits are never made. Greed is a complex emotion to control and when unrealized profits start to rise, new traders unaccustomed to signs of exuberance can see profits disappear or even turn into losses when the market changes abruptly and unexpectedly. Many have recently learned a hard lesson about this situation with cryptocurrency.

The Stop Loss feature is a way for traders to protect winning positions, but many professional trading platforms also allow you to add Take Profit orders to positions that close at a profit when a specific target is reached.

The concept is similar to Covesting's new Take Profit feature, except that it allows traders to profit from a successful strategy before they get lost and most importantly, it does so by continuing to follow the strategy.

How Cowesting Creates Winners

Covesting is a peer-to-peer copy trading community where followers can scour a huge roster of strategy managers looking for gold. Instead of having to know the markets, maintain emotional control and manage positions or perform technical analysis, followers can copy the trades of strategy managers.

Followers know which strategies are best suited to their personal risk appetite or profit goals by looking at the module's fully transparent risk and success metrics. Statistics are updated regularly and strategies are ranked based on total profit. There is also a five-star system for ranking the safest and highest quality traders.

Covesting software imposes certain limits and parameters on the amount of initial follower capital a strategy manager can trade with for risky purposes and to encourage diversification among other strategies. This means that when a strategy is capitalized to the limit, no new followers can follow that strategy until space is freed up and the strategy manager increases his capital.

Because the Take Profit feature is valuable

Previously, making a profit meant leaving behind a strategy, which could also lead to losing your position to the strategy manager. Instead of choosing between current or future earnings, the new Take Profit feature allows for both options.

The Take Profit feature is triggered when a strategy has 5% or more unrealized PnL. Activating the Take Profit feature records these gains, adds them to the account wallet and instantly restores to ensure space with this strategy is not lost.

In addition to the apparent benefits of recording more profits more consistently, it also means that fewer profits are lost due to decreasing unrealized PnL during losses or market going in the opposite direction to corporate managers' positions.

Take profit to the next level by betting the COV token

Setting aside more profit often benefits the strategy manager as well. When earnings are recorded, commissions and fees are collected and assigned to the strategy manager based on the current offering or any account-level service enabled by the COV token.

Since the strategy manager will receive his success rates more quickly, he can increase the size of his capital or use the profits to activate the staking functions of the COV token.

Pinning on VOC tokens, for example, can increase profit sharing for followers and reduce trading fees for strategy managers. The Take Profit feature causes the follower to incur another new 1% tracking fee. However, this fee can be waived with any token membership level of staking COV.

The Take Profit function is already active in the Covesting copy trading module on PrimeXBT. It is the latest example of how the Covesting team aims to strengthen traders' profitability and ensure a safer trading environment across the ecosystem.