On April 1, , in close partnership with Europe-based financial software developer Covesting, released the Covesting Fund Management Module beta.
The Covesting Fund Management Module is a unique, peer-to-peer asset management module designed to connect the world’s best traders, fund managers, or those aspiring to become one, with investors.
The tool enables these top traders or fund managers to create and manage a fund on the award winning Bitcoin-based margin trading platform PrimeXBT. As funds are created, they are immediately added to a global ranking system, providing transparency for investors to perform due diligence and research before injecting capital into one of these funds.
From there, however, investors can simply sit back and let top traders do all the work for them. Depending on the trader chosen, profits will vary, but by utilizing the rating system, and selecting only the trader’s with the highest success rates, will allow capital to grow without having to manage the funds or make trades of your own.
This is an enormous relief for many in such a fast-paced world, and are often working many jobs and don’t have the time to dedicate to performing detailed technical analysis, or managing positions themselves. It is also an incredible benefit to new traders or investors who don’t need to pay tuition fees by the way of initial losses when learning the ropes.
Top traders earn as well, getting a cut of the profits generated from investor’s capital invested into the fund. It also means that the fund manager will be able to take larger position sizes, therefore further bolstering the profit potential.
The main caveat here is that the platform – although it assigns ratings for investors to pay attention to – cannot guarantee even the highest-ranked fund manager can’t have a bad day, week, or month, and suffer losses that lower their ranking and win rates.
What Type of ROI Can The World’s Best Traders and Fund Managers Make?
In a press release, the company shared an example of the opportunity possible through the new tool, using career trader with over 40 years of experience, Peter L Brandt.
Investing in a fund managed by a trader of such high caliber could potentially be extremely profitable. Of course, even investing in the greatest trader’s fund still comes with risk, however.
To weigh out the many pros against the few cons, we’ve compiled the data on how much value experienced and knowledgable traders can bring to other users in the Covesting Fund Management Module.
Peter L. Brandt, Career Trader and CEO of Factor, LLC
Using the Peter L. Brandt example, even one of his most public trades would have made more returns than many others do in their entire trading career.
Brandt’s career is well known throughout commodities, however, a tweet following Bitcoin topping out at $20,000 in late December included a price target of roughly $3,933 – or roughly an 80% decline.
Last month during the now infamous Black Thursday market selloff, Bitcoin price reached $3,900 hitting Brandt’s target on the head.
This is an example of what just one trade could earn investors, but Brandt has over 40 years of experience and similar wins.
Thomas Thornton, President at Hedge Fund Telemetry LLC, Portfolio Manager, Trader
In a more recent and shorter timeframe trade, Thomas Thornton, hedge fund manager, and top trader has netted a 52% gain on a Bitcoin long taken from recent lows.
Thornton relies on a variety of tools created by market timing wizard, Thomas Demark, such as the TD Sequential indicator. Using the tools, Thornton is expecting further upside on BTCUSD price charts, suggesting that this number will only increase in the days ahead.
Thornton’s track record of success is then passed on to his clients who invest in his hedge fund. The Covesting Fund Management Module connects traders and investors in the same way, however, it provides an unparalleled level of transparency into exactly how much profit each fund is earning – data that is made public for all clients to see.
This is also just one trade of many taken in just one asset class. PrimeXBT offers long and short positions across forex, stock indices, commodities, and cryptocurrencies like Bitcoin.
Mark Dow, Founder of Dow Global Advisor, Former Bloomberg Contributor, Trader
Another, noteworthy Bitcoin short, is one that was widely covered in media publications. Economist Mark Dow revealed on his blog Behavioral Macro, that following Bitcoin’s parabolic advance breakdown, a fall “below 14,240, you can short it,” referring to Bitcoin.
Dow famously shorted the cryptocurrency right after Bitcoin’s top, then on December 20, 2018, just days after the asset reached $3,200, Mark Dow revealed to Bloomberg in an interview that he had just .
A short position from $14,240 all the way to $3,200, would represent a 77% decline – and depending on the capital at stake, could have been a trade of a lifetime for most.
Traders on the Covesting Fund Management Module have already reached profits of over 80% in the first month of trading, demonstrating that ROI such as the example above is possible.
Covesting Fund Management Module Connects Investors With the Experienced Traders
Brandt, Thornton, and Dow, like all traders, get better over time and win rates improve. But like most when getting started, likely experienced struggles, lost capital and learned from their mistakes before becoming the stoic traders they are today.
The Covesting Fund Management Module can cut out that early loss phase all traders go through, and let them simply invest capital into the funds of one of these many top traders who are experienced enough to regularly book profits.
The Covesting Fund Management Module is currently in beta, allowing ample lead time for funds to be created before the full release. At the time, investors can utilize the public ranking system to find the right fund for them and make an investment into one or many of the available funds that suit their risk appetite and strategy preference.
Experienced traders are urged to register to gain early access to the Covesting Fund Management Module beta and start setting up their funds ahead of the full release, by visiting PrimeXBT.
The longer the trading performance history, the higher the ratings, and the more usable data investors will have to compare when deciding between investing in one trader’s fund over another. Long, profitable track records like the career traders mentioned in this article, speak for themselves.
Both Covesting and PrimeXBT representatives warn that historical performance is never a guarantee for future successful results. Volatility combined with leverage can lead to both substantial profits as well as complete capital loss, so investors must never invest more money then they can comfortably afford to lose.
PrimeXBT is an award-winning multi-asset margin trading platform, offering CFDs on forex, commodities, stock indices, and crypto at up to 1000x leverage.
For more information on how to gain early beta access to the Covesting Fund Management Module on PrimeXBT, visit: