If there's one thing that no investor can avoid, it is the risk that comes with investing. However, you can manage risk by studying where you invest. This will help you make an educated and calculated decision, based on the other trader’s portfolio.
Introducing the Risk Score
On NAGA, the Risk Score is a measure that helps you examine each trader's risk appetite. That way, you can better decide if you want to Autocopy a certain trader or to look further. Please bear in mind that other factors shall be taken into consideration.
How to read the Risk Scores?
The Risk Score is measured in values from 1 to 10. The higher the score, the higher the risk, and vice versa.
For example, a trader with a Risk Score of 10 is likely to take on trades that can potentially result in significant profit or losses relative to their account balance. Whereas, a trader with a Risk Score of 3 is likely to be more conservative and diversified.
How is the Risk Score measured?
The Risk Score on NAGA is updated periodically and is calculated based on the trader's historical activity. Max Drawdown, Utilized Margin, Sharpe Ratio, and Stop Out history are taken into account for NAGA traders' Risk Score calculation.
What Risk Score will you receive when just starting out?
New traders without prior trade records on NAGA will receive a default Risk Score of 10, without the ability to be Autocopied from other users.
In order to lower the Risk Score below 10, you need to have more than 5 closed trades in the last 90 days, plus you must have made at least one trade in the last 30 days. So, in short, the better trades you make, the lower the score of your profile, the higher chance of someone new copying you.
Who can you copy based on your Trader Level? (Only applicable to NAGA Markets clients)
Depending on what Trader Level you have on NAGA, your access to the Autocopy feature will differ. We've created this system to protect beginners from copying high-risk traders.
Beginner and Elementary traders have no access to Autocopying Leaders *
Intermediate traders can copy Leaders with Risk Score 1 to 5 (including)
Pre-Advanced Copiers can copy Leaders with Risk Score 1 to 7 (including)
Advanced Copiers can copy Leaders with Risk Score 1 to 9 (including)
* Beginners and Elementary can retake the suitability test after 2 weeks.
Once you level up, you can Autocopy higher risk traders and potentially make greater returns on your Autocopy investments.
Where can you see the Risk Score?
Risk Score is displayed on users' profiles and on Autocopy modals.