Covesting copy trading is taking the world by storm, especially during a time when crypto market profits aren’t as easy to come by as they once were. During the recent shift in market sentiment and consolidation phase, Bitcoin, Ethereum, and other altcoin traders were decimated when the uptrend reversed.
Fortunes were made then wiped out, but during the sideways action and from the dust has risen a new strategy manager to the top of the Covesting leaderboard ranks. This trader came out of nowhere starting this July, and in just over one month has amassed nearly 20,000% profits, the reigning record of the most profitable trader to make the top of the leaderboards before them.
That story before the current number one spot finished with a not so happy ending, but the newcomer has restored faith in a more fruitful outcome. Here is a closer look at this trader’s rise to fame, and a breakdown of their performance to see if they can maintain this winning streak or not.
From Zero To 20,000% Profits
Each time a trader opens up a new strategy on Covesting, there is a clean slate in terms of raw data. The metrics all start at zero, and it is then up to the strategy manager to build their reputation and notoriety from scratch.
The only way to do this is by posting pure profits to their account on a regular basis, and to be able to do so better than their trading community peers and colleagues. If total profits beat out the rest of the crowd, the platform will naturally propel the strategy higher up the ranks.
With greater ranks comes increased visibility, which is how strategy managers make the most money possible. With more visibility and recognition and by being at the very top of the leaderboards, it is a lot easier to get noticed by followers and less clicks to be followed. This matters, and will lead to more follower’s equity to trade with.
With a fresh start of zero profits, to a total of 20,000% in less than fifty days, the performance of this trader is especially commendable. But when you zoom out and look at the bigger picture, the strategy manager managed to achieve this feat while the crypto market has been consolidating.
Courageous Copy Trader Shows The Way To Profits
During the trader’s time on the Covesting copy trading platform, found exclusively on the award-winning margin trading platform PrimeXBT, the crypto market went from consolidating, to rising.
What is important to note about this spectacular feat, is that the strategy manager in question was bold enough to buy the blood in the streets while the rest of the market was fearful and expecting further lows.
Past strategy managers that made profit from the short-lived downtrend by shorting ended up wrecked when the cryptocurrency suddenly turned back around. But those like the newcomer above who were brave enough to buy when the rest of the market was fearful, they now can enjoy their profits and be greedy while others are stuck FOMOing back into Bitcoin at higher prices.
How Contrarian Trading And Investing Can Be Profitable
Some of the greatest minds in finance to have ever lived are all advocates of contrarian trading or investing. The practice suggests that the smart and savvy investor should go against the grain or the hive mind sentiment across the market. It also might mean going against the news cycle as well.
In cases like this, although the market was extremely bearish in terms of sentiment across the community, and although financial news outlets were reporting Bitcoin would go to below $20,000, the cryptocurrency climbed by 48% back to $45,000.
The crypto market cap returned to more than $2 trillion and is still climbing, and new legends were born in the Covesting leaderboards during this phase. Yet only the few who saw this change in the trend coming and took a contrarian position from the rest of the market were able to book profits. Others saw their unrealized PnLs decimated.
Taking the opposite position involves going short when everyone else is long, or going long when others are short. Platforms such as PrimeXBT offer the ability to open long and short positions at once, so that traders can hedge long positions with a short at resistance, or vice versa. These more complex strategies are common amongst Covesting strategy managers.
Choose Covesting And Follow Contrarian Strategy Managers
The Covesting copy trading module is available on PrimeXBT as part of a B2B partnership with a European fintech developer of the same name. With Covesting, followers can copy the trades of strategy managers with profits like what is outlined within this article. For those that don’t yet know how to control their emotions and often let fear or greed shake them out of positions, copying the trades of a more experienced strategy manager is a viable alternative to soaking up losses or giving up completely.
If you had a tough time trading the recent change in trend across crypto, or learned the hard way that holding can lead to losses, becoming a follower is the next best thing. Beyond the strategy mentioned here, there are hundreds of other strategies to choose from, each with their own risk and success metrics to consider.
Using the data from within the Covesting leaderboards and the details of the five-star system, followers have all the intel they could need to make an informed decision about which strategy to follow. Simply going for the gold and the most profits possible can be a risky venture as past strategy managers who fell from grace have proven, but riding the right strategy to substantial ROI is also possible.
This is why followers must actively manage their positions with strategies, and even diversify across multiple strategy managers. This way there’s less overall risk riding on one strategy alone. Stop loss, and take profit features have also been added to give followers much greater control over their following positions.