How to allocate capital to a strategy
Welcome to Vestinda's advanced trading platform!
In this guide, we'll walk you through the essential steps on how to allocate capital to a strategy effectively and maximize your trading results.
1. Starting a Strategy:
Begin your automated trading journey by exploring our diverse collection of pre-built strategies or creating your custom ones with our intuitive Strategy Builder. Each strategy comes with a detailed description and historical performance, enabling you to make informed decisions.
See how to use a ready-made strategy from Library.
See how to use Vestinda Strategy Builder.
2. Allocating Balance
Decide on the amount you want to allocate to a particular strategy. Vestinda's flexible system allows you to allocate any portion of your trading balance, giving you full control over risk management.
There is a minimum required to be able to place orders in Exchanges. Current minimum is 30 USDT or equivalent in another asset.
As a rule of thumb, there is also a maximum that you should allocate to each strategy. Especially since it is mandatory to diversify.
3. Diversification Across Strategies
Minimize risk and enhance profitability by diversifying your capital across multiple strategies. Our platform allows you to spread your funds across different assets and trading techniques, ensuring a well-balanced and resilient trading approach.
The best results our users see is when they use at least 3 strategies over a period of 6 months. The minimum recommended total amount on all strategies is $500. Users who allocated at least $500 on 3 or more strategies for 6+ months are most likely to be profitable. Those who trust the systems and don't make manual interventions are in a vast majority profitable. In opposition with industry standards where more than 80% of retail traders lose money.
4. Understanding Compounding and how to Reinvest Profits
Leverage the power of compounding to grow your profits exponentially. Reinvesting your strategy's gains back into the balance amplifies returns, leading to substantial growth over time. Our platform allows you to activate compounding when you start your strategy. You can use compounding with any of the available strategies (from Library or created by yourself).
Compounding / Reinvesting Profits
Compounding is a powerful concept in finance that refers to the process of earning interest or returns on an initial investment, and then reinvesting those earnings to generate even more returns over time. It involves letting your profits work for you, creating a snowball effect that accelerates the growth of your investment. The key principle behind compounding is that the returns from your investment generate additional returns, creating a compounding effect that can lead to substantial growth.
Let's illustrate this with an example
Suppose you invest $1,000 in a financial instrument that earns a 10% return annually. At the end of the first year, you would have $1,100. In the second year, you earn 10% on the new total of $1,100, which adds another $110 to your investment. In subsequent years, the growth compounds as you earn returns on both your initial investment and the accumulated gains. Over time, the compounding effect can significantly boost the value of your investment, leading to exponential growth and long-term wealth accumulation. Compounding is a powerful tool for investors to harness the magic of time and patience to achieve their financial goals.