5 Reasons Trader unable to find Investors and their capital for Assets under Management

5 Reasons Trader unable to find Investors and their capital for Assets under Management

The AIVIA team is bringing a long-awaited professional solution to those who engage in trading and Asset under Management in the cryptocurrency market. Today we will share extremely useful information based on feedback from our users. In this article, you will learn based on what criteria investors choose a trader.

First of all, you need to realize the fact that investors are not willing to transfer funds to the Trader’s account, even for Assets under Management. The majority of investors prefer account management through API keys, where the funds are controlled by the investor.

So, Top 5 reasons why a trader is unable to find Investors and their capital for Assets under Management (AuM).

1. Negative profitability for the entire trading period.

First of all, the investor looks at the trader's performance for the entire period, as well as how the trader managed other investor accounts and what kind of performance result was achieved. If statistical data is available only for a few months, then the chances of getting large deposits under management are extremely low. Investors are paying attention to statistical data for the past 6 months or more.

2. A small deposit amount of Trader’s personal funds.

Some traders have only 200-300 dollars in their personal accounts and they are wondering why investors ignore them. It is really simple, the investor understands that if the trader himself does not take any serious risk this person does not take trading seriously. It is a common mistake for traders to believe that it is good enough to trade a minimal amount with good statistical data on their account to find an investor who will entrust them a capital. If a trader wants to show that he is a professional whom investors can trust, then first of all, traders need to show their funds under management. We recommend that traders use a minimum of 0.5 BTC in their accounts to show a commitment and serious intent for the investor.

3. Aggressive trading strategy with high leverage.

If a trader enters into transactions with a large lot then with a minimal price movement, he risks drawdown. Even if the strategy provides for such an approach to trading, investors will feel extremely uncomfortable and will most likely disconnect the access to capital and terminate the relationship with this trader. As we found out, a trader who trades not only for himself, but makes it possible to copy his transactions, must take into account various factors that affect the psychological state of investors.

4. Long timeframe and large drawdown.

Often, traders use primitive averaging strategies that result in a large amount of the drawdown for a long time. Then Trader is waiting for the price to return to the desired level. Even if the price returns to the desired level in a month or two, then most likely the trader will not earn anything for this period, which equates to lost profit. To make this situation even worse, if the price has not returned to the desired level Trader will have to fix the loss. Investors are not prepared to be in a drawdown for long periods of time, and many of them will simply take a loss and find another trader.

5. Lack of risk management.

Most investors are much more interested in competent risk management than in profitability. Some traders simply do not exercise risk management, despite a good trading performance. If a trader uses aggressive strategy, such as price average, does not use stop loss to ensure that the maximum declared drawdown will not be exceeded, then with a high probability, the investor will very quickly remove the capital from under management of such a trader.

If you as a Trader want to find Investors to trade their capital and treat Assets under Management as a serious business that can give you additional liquidity in the form of investors’ deposits, then do not make these mistakes. Try to correct the mistakes you have already made, and Investors on the AIVIA platform will be choosing your professional services for trading their capital.

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