Traders should always know when they plan to enter or exit a trade before they execute. By using a stop loss effectively, a trader can minimize not only losses but also secure profits. Make sure to define your strategy and plan ahead of time and you'll be sure to win the “war”.

With NAGA Trader, you have full control over your money and you always decide how much risk you take by defining your risk level. Furthermore, you can always adjust the take profit or stop loss levels. You can also close trades at any moment. Proper risk management is the formula for success of every profitable trader.

First, you should be aware that traders are exposed to risk. Although investors may have shown a great past performance, it does not mean that they will show the same performance in the future. Also before you start to trade, you should first try a Demo Account and test your chosen trades and strategy. Afterwards, you can start trading with small amounts, and when you are absolutely sure, invest larger amounts.

  • You should also be aware that your NAGA Markets account by default is leveraged.
  • What are the key factors for proper risk analysis when copying/auto-copying others? 

Here are some figures that should be taken into account in your risk strategy when following other traders: 

  • Accuracy - Which percentage of past trades were positive? 
  • Rank - Which rank does the trader have in the “Leaderboard”?
  • Profit - How much profit did he/she make in the past?

How can I evaluate if a trading system works?

It is very simple. No drawdowns, no volatility, no sharpe ratios and no other figures that nobody understands. Just a simple and transparent performance approach, which is clear to everybody.

And remember to set your Volume / Margin without exposing your trading account to a high leverage ratio.

By following trading signals from other people, you are naturally exposed to a certain degree of risk. If you copy a trader and this trader loses money, you also may lose if your trade has negative P/L (Profit and Loss).

We at NAGA Trader value the importance of a proper risk management. Hence, when you copy single trades through NAGA Trader App with your defined stop loss and defined take profit levels, extreme drawdowns cannot occur.

NAGA Trader offers you a great risk management tool (NAGA Protector) which is key to sustainable trading success in the long run.

We hope this guide was helpful. Read more articles in the Help Center. If you still have questions contact Support Center directly via [email protected] 

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