How to set Risk Management in Social Trading

How do I set up risk management in my Social Trading account?

Follow these steps to properly set up risk management and corrections in your Social Trading account:

1. Log in to Your Social Trading account: To log in to your Social Trading account, click the “Get Started” button on the right-hand side, choose between Tradequo, and click “Start.” Select either “Tradequo MT5” or “Tradequo MT4,” then enter your trading account’s ID as the username and your password. Finally, click “Login.”  Alternatively, you can navigate directly to the Social Trading Login Portal to log in.

2. Navigate to the My Portfolio: After successfully logging in, locate the menu bar on the left-hand side of the page. Click on ‘My Portfolio’ located next to the Social Trading l

3. Find the leader: Kindly try to find the leader you would like to copy trade signals from by looking in the Providers column. Then, click on the name of the provider to check the subscription profile settings. Scroll down the page until you find the “Risk Management” section.

4. Set up the Risk Management: Click ‘Create’ in the Risk Management section, located beside the end of the section to configure your settings from Parameters, Threshold, Subscription Actions, and Trading Action according to your preferences and click create again to apply your risk management settings.

You can use the guidance below to help you:

What Parameters can I set?

You can set the following parameters in Risk Management:

• Total Loss: The maximum loss amount you are willing to tolerate.

• Total Profit: The target profit amount at which you want to take action.

• Floating Loss: The maximum unrealized loss you are willing to tolerate.

What  Subscription Actions can I choose?

Choose from these subscription actions:

• Keep: Continue copying the leader’s trades.

• Suspend: Pause copying the leader’s trades temporarily (The subscription can be set up again only once it’s activated by the follower themselves)

• Unsubscribe: Stop copying the leader’s trades completely.

What Trading Actions can I choose

Choose from these trading actions:

• Keep All: Keep all the trades open.

• Close All: Close all trades immediately.

• Close Unprofitable: Close copied positions one by one, starting with the most losing one, until the overall loss level becomes lower than the threshold set.

• Close all unprofitable: Close only the trades that are currently unprofitable.

Examples

1. Setting Total Loss with Subscription Action ‘Suspend’ and Trading Action ‘Close All’:

• Parameter: Total Loss

• Threshold: $100

• Subscription Action: Suspend

• Trading Action: Close All

This configuration is based on the cumulative realized profit and loss (PnL) since the subscription start. When the total realized PnL reaches the specified loss threshold, all the actions mentioned above will be triggered.

Example Scenario:

Position 1: Realized PnL -$50
Position 2: Realized PnL -$75
Combine Realized PnL: -$50 + (-$75) = -$125

The Threshold for total loss: $100

If your total realized PnL reaches -$100, the system will suspend copying the leader’s trades and close all your open trades immediately. In this case, the total realized PnL is -$125, which surpasses the threshold of -$100. Therefore, no actions would be triggered.

2. Setting Total Profit with Subscription Action ‘Keep’ and Trading Action ‘Close All’:

• Parameter: Total Profit

• Threshold: $500

• Subscription Action: Keep

• Trading Action: Close All

When your total profit reaches $500, the system will continue copying the leader’s trades but will close all your open trades to lock in the profit.

3. Setting Floating Loss with Subscription Action ‘Unsubscribe’ and Trading Action ‘Close all unprofitable’:

• Parameter: Floating Loss

• Threshold: $200

• Subscription Action: Unsubscribe

• Trading Action: Close all unprofitable

If your floating loss reaches $200, the system will stop copying the leader’s trades and close only the trades that are currently unprofitable.

This configured is based on the cumulative unrealized profit and loss (PnL) since the subscription start. When the total floating loss reaches the specified threshold, all the actions mentioned above will be triggered

Example Scenario:

Position 1: Floating PnL -$150
Position 2: Floating Pnl -$50
The combined Floating PnL is: -$150 + (-$50) = -$200

The Threshold for the Floating Loss: $200

In this scenario, the combined floating loss is -$200, which meets the -$200 threshold. Therefore, the system will stop copying the leader’s trades and close only the trades that are currently unprofitable.