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What is the Risk Score on NAGA?
If there’s one thing that no investor can avoid, it would be 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 bare 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.
Where can you see the Risk Score?
Risk Score is displayed on users’ profiles and on Autocopy modals.
PLEASE NOTE: As an additional security measure, new traders with trading accounts of NAGA Markets, and with little to no track record will be limited from Autocopying high-risk traders until they get more experience.
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RISK WARNING: Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money. This is not investment advice. Trading with NAGA Trader by following and/or copying or replicating the trades of other traders involves high levels of risks, even when following and/or copying or replicating the Lead Traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Before making an investment decision, you should rely on your own assessment of the person making the trading decisions and the terms of all the legal documentation.
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