What is important to pay attention to when choosing a trust manager?
Let's consider a number of factors that should be taken into account when choosing a manager.
Trust management is when the investor's resources are under the control of a professional manager. Luckily, such service was made possible without a direct transfer of funds. It's all thanks to nowadays crypto exchanges. You can create special API keys. They give a third party (trader) partial access to your account for buying/selling assets.
The main advantage of this service is security. A trader will not be able to withdraw your funds due to the limitations imposed upon the API key.
The main drawback is that he can lose up to 100% of your assets. So, first things first: pay attention to the following details when evaluating the trader's results:
As a rule of thumb, investors are looking for someone who earns more money. Nevertheless, a high profit may indicate risky positions. Check the average monthly and daily profits. They should be stable, without sharp swings.
The maximum and average drawdowns deserve special attention. Loss indicators paired with fluctuating returns can signal a high level of risk that a trader assumes.
Let's say a trader has +70% in one month and -50% in another. It should give you serious thoughts about his strategy. Maybe he doesn't have one and just hopes to get lucky. You should not trust him with asset management.
The older, the better. You will be able to evaluate the results of the trader's activity. An old account indicates the trader’s experience.
Its existence may be alarming. On the one hand, traders hide part of their account history in order to correctly evaluate their activities within the specified periods. On the other hand, they may try to disguise large losses in the past.
If a person states that he has been trading for a long time, and above all successfully, ask him to connect accounts to the Equite platform and send links to check (the service is free). Do not believe the sent screenshots, they can be fake. The monitoring tool allows you to connect any account and make an impartial assessment of the trading results.
Social Media Groups
Telegram channels and social media groups that promise massive profits must be taken with the utmost care. Collect data about the trader and his team before starting cooperation.
In the chat on our website, you can always ask a question about a trader you are interested in. Just send us a link to his page. We will help you with analytics, as well as with the first level of contact. What is more, we can send you the list of verified traders who cooperate with the Equite platform.