Covesting is a copy trading module available exclusively on the award-winning trading platform PrimeXBT through a white label B2B licensing agreement, which has brought both companies much success in the last several years.
Looking ahead, the duo plans to debut a new APY-generating tool this year, but for now, we’re taking a deep dive into all the different advanced trading tools Covesting strategy managers have at their disposal, thanks to the partnership with PrimeXBT. It also explains why the two companies were a match made in heaven, and the rest is history.
What Is The Covesting Copy Trading Module?
The Covesting copy trading module is a peer to peer trading community where strategy managers can show their skills and followers can make money by copying the trades of these strategy managers.
The onus is on the strategy manager to not only perform well for their own profitability sake, but so they also get the most visibility on the Covesting global leaderboards and attract the most followers. They also need to keep profits high to ensure that followers stay satisfied and don’t look for more profitable opportunities elsewhere.
Followers get to then copy the trades of these more skilled and proven profitable strategy managers, and strategy managers make a cut of the success fees of copied trades for a win-win situation on both sides.
Profits can be further amplified by using the COV utility token within the Covesting ecosystem of products and services. Staking COV tokens turns a standard account into one of three increasingly better account membership tiers, each offering a variety of account level utilities that are then unlocked depending on the total number of COV tokens locked up.
Accounts can be upgraded at any time, and COV token staking can be stopped with just a click. The three tiers – Advanced, Premium, and Elite – all offer a scaling set of benefits, such as a discount on trading fees, unlocking follower limits, improving success fees, and much more.
COV token staking will also unlock up to a 2x APY boost when Covesting Yield Accounts debut later this year in Q3 2021. COV tokens can be purchased at Kucoin and Uniswap.
What Tools Can Covesting Strategy Managers Access?
With what Covesting is and why it matters now out of the way, we’ll explain how strategy managers on the platform were able to reach as high as 20,000% ROI all while the crypto market crashed or traded sideways – two typically unprofitable environments. The total profits are a true testament to the skills of the strategy manager, but also the tools offered on PrimeXBT.
Right off the bat, going long or short selling are two of the most important tools that Covesting strategy managers have at their disposal and were a prominent reason for Covesting partnering with PrimeXBT in the first place.
Long and Short Positions
What is meant by short selling, is that a trader is placing a speculative bet that the price of an underlying asset will decrease in the near to mid-term, and is attempting to extract a profit from the difference in the price from the time the position is opened until a target is reached.
The same works in reverse by going long, with it acting as a bet that prices will rise instead. Both types of positions can be used on PrimeXBT as part of an advanced trading strategy, and even be open both at the same time simultaneously for hedge positions.
For example, say a trader has a Bitcoin long in enormous profit and they expect the price to eventually reach $100,000 per coin some day. Rather than having to switch positions entirely, if the market looks like it could reverse sooner than expected, the trader could open a hedge short position, which if successful, could protect against losses and allow for profits during a correction.
Stop Loss Orders
Depending on stop loss placement, that long position might be protected and safe, or worst case it is triggered while still in profit. Advanced strategies exist where traders can utilize the Parabolic SAR and move stop losses up below each SAR dot.
SAR stands for stop-and-reverse, and the tool tells analysts when the market trend has stopped, and reversed. It is considered a lagging indicator, however, it is also among the most accurate technical analysis indicators available today.
Technical Analysis Tools
The Parabolic SAR is also just one of dozens of technical indicators and oscillators offered for free as part of the built-in charting tools from TradingView right within the PrimeXBT dashboard. It can also be used to chart patterns, draw trendlines, find support and resistance, and much more. Covesting strategy managers never open a position without it.
Take Profit Orders
In addition to stop loss protection orders, PrimeXBT is one of the few platforms that allow for professional position amendments like take profit orders. Like a stop loss, these orders trigger when an open position reaches a price level specified in advance by the trader. The order triggers at the target, closing in profit.
For those who want even more control, there are OCO orders where one order type cancels the other. This means a long position closes when the target is reached in profit, but then immediately opens a short position that can then be used to ride price down for more profits. This is reserved for only the most skilled strategy managers on Covesting.
Covesting strategy managers have all the tools available to them above and much more. Using these tools is the key to their success, and how they are able to make it to 20,000% profits during a crash or sideways trend.
When the crash started, hedge short positions kept these traders profitable, and margin accounts in BTC, ETH, USDT, and USDC kept profits flowing during the sideways trend. For those that aren’t able to do this themselves, becoming a follower is also an option. Followers can copy the trades of these successful strategy managers and become profitable themselves.