Before you select a suitable Strategy Manager, it's good to understand your own trading profile. Ask yourself the following questions:
- Are you a beginner, intermediate or advanced trader?
- Are you an aggressive, moderate or conservative trader?
- Do you have a high, intermediate or low tolerance to risk?
- Do large losses make you feel uncomfortable?
- Are you after only big profits?
After you answer the questions above, you can find the right Strategy Manager to fit your financial needs. Your Strategy Manager must match your trading characteristics in terms of:
- Desired risk level
- Maximum drawdown
- Maximum returns (i.e. gain)
A Strategy Manager’s risk level is based on their maximum drawdown and daily average return. Investors can see statistics and other relevant information about Strategy Accounts on the Top Ranking Strategy Managers page.
Investors willing to accept lower returns and lower risk may select Strategy Managers with this risk level:
- Low Risk Level - 2 or less
- Low Max Drawdown - For example, less than 30%
On the other hand, investors looking for higher returns and who are willing to accept higher risk may select Strategy Managers with this risk level:
- High Risk Level - 4 or 5
- High Max Drawdown - For example, higher than 50%
In general, Strategy Managers who've traded for at least 6 months and have a longer track record are more reliable. The longer the Strategy Manager has traded, the more confident the investor can be.
You can use the filter available on Strategy Manager ranking list to find the strategy manager that suits your investment profile.