A situation brewing across the globe that could put the economy in danger has abruptly brought extreme fear and bearish sentiment to markets. A potential default on an enormous amount of debt could cause Chinese real estate giant Evergrande to collapse. It prompted a massive selloff in Bitcoin and other cryptocurrencies, followed by a sharp retreat in the stock market.
Even the battered, beaten, and otherwise stable metals market took a hit. Yet somehow, Covesting strategy managers were able to stay in the green, retaining as much as 16,000% of total profits while the rest of the market suffered.
Which strategy manager was able to achieve such a feat, and how were they able to pull it all off? We’re digging into the fully transparent risk and success metrics offered through the Covesting global leaderboards to try and find out in our September month in review.
The Self-Proclaimed “Comeback King” Never Loses Top Spot
For what is now several months in a row, strategy manager ChamelX has maintained the top spot in the leaderboards. The user’s description says they are the “Comeback King,” but they’ve never even left number one. Even better, no month has proven why ChamelX is so deserving of the top spot than September 2021.
The theme of the month was panic and fear over a potential economic collapse due to the fallout over a possible debt default of Chinese real estate giant Evergrande. The stock market sold off sharply, and cryptocurrencies collapsed by more than 20% in most cases.
Liquidations were triggered across the board all across the crypto market, and the general sentiment on social media was fear and madness. However, by using the Covesting copy trading module, ChamelX was sitting comfortably with 16,000% total profits, with other traders right behind him with thousands of percent profits themselves. Followers of these strategy managers were also in profit.
How, then, were Covesting strategy managers able to keep profits so high when the market tanked? Let’s take a look at the metrics to find out.
Covesting Data Suggests Successful Hedge Short Protected Capital
Using the fully transparent Covesting leaderboards, we have access to all the same public information and data that followers do. Using this information and matching it with recent price action, we can begin to speculate on how these strategy managers were able to pull off such a feat.
For one, Covesting strategy managers have access to the full suite of advanced trading tools provided by PrimeXBT, where the Covesting module is located as part of a white label licensing agreement. This means that strategy managers can make money when the market falls or rises, with long and short positions.
Looking at the total profits over the last several months pictured above, ChamelX is likely long Bitcoin or other high-performing cryptocurrencies, considering the climb and its timing, followed by a pullback in total profits.
The big difference between Covesting traders and the rest of the market is that strategy managers were able to hedge short at resistance to cover losing any unrealized gains associated with the longs already in profit. And by looking at the margin allocation chart below, we can see that this trader rarely increased risk and instead was patient and stuck to a plan.
Advanced Copy Trading Strategies Are Possible With PrimeXBT
This type of advanced strategy is only possible with Covesting and PrimeXBT. PrimeXBT provides Covesting users with all the tools necessary to stay profitable no matter what the market does next. Built-in charting tools help strategy managers know where and when to go, long or short, and when to close out positions or simply hedge.
The end result is traders with total profits in the tens of thousands of percent, rather than the rest of the market that was liquidated or at a loss. Lucky for even them, by becoming a follower on Covesting, they can tap into the expertise of other more successful traders, who can rise the ranks of the Covesting leaderboards.