Support Funds are an additional layer of protection designed to help investors manage risks while copying trading strategies. Their main purpose is to sustain active strategies during sudden or unexpected market movements, giving the strategy time to recover and avoid unnecessary closure of positions.
Support Funds are optional, and can only be added when initially copying the Trader strategy.
How Much Support Funds Should Be Added?
The recommended amount of Support Funds is at least 40% of the minimum investment amount.
When adding Support Funds, investors will see a risk message based on the amount:
- 0%–19% – Red message. Indicates high risk. The funds may not be sufficient to protect the investment during volatility.
- 20%–39% – Yellow message. Indicates medium risk. The funds offer partial protection but may not fully cover strong market fluctuations.
- 40% or more – Green message. Indicates that the recommended level of Support Funds is added, offering better protection against market swings.
Having Support Funds helps reduce the risk of early stop-out during volatile periods, potentially allowing for better long-term performance.
What Does "ON HOLD" Mean in the Investor Area?
If an investment’s equity reaches zero, it will receive the “ON HOLD” status.
This status means:
- The investor is not automatically unsubscribed from the trader.
- The investor has two options:
- Deposit additional funds to continue copying the trader.
- Stop copying the strategy altogether.
This status allows investors to decide whether they believe in the strategy’s potential recovery or prefer to exit.
Example: Why Support Funds Matter
Imagine an investor deposits $100 to copy a trader.
- If the trader’s strategy faces a temporary market drawdown, and the investor has no Support Funds, the equity may reach zero, and the investment will be marked “ON HOLD.”
- The investor must then decide: add more funds or stop copying.
Now imagine the same investor adds $40 as Support Funds (which is 40% of the investment).
- If the market drops, Support Funds can cover the losses, keeping the position open.
- If the market recovers later, the investor avoids unnecessary losses and may even profit.
Support Funds serve as a buffer, giving investors more flexibility and time for recovery in volatile conditions.