What is the Risk Score on a Copy Leader profile? How is it calculated?
Updated
What does the Risk Score mean on a Copy Leader profile?
A Copy Leader’s Risk Score is a value that indicates how risky a trader’s strategy is, ranging from 1 (Low) to 3 (High). It gives potential Copiers a quick way to assess the risk profile of a leader before deciding to follow them.
The three levels are:
1 = Low Risk – Safe and stable.
2 = Moderate – Balanced.
3 = High Risk – Aggressive and volatile.
How is the Risk Score calculated?
The Risk Score is calculated using key metrics from the trader’s performance:
Return On Investment (ROI) – The profit made by the trader.
Sharpe Ratio – The stability of the trader’s returns.
Assets Under Management (AUM) – The total amount of assets in their Copy Trading accounts (both Copy Leader and Copier accounts are included).
PnL – The trader’s total profits in USD.
Each metric is given a score from one to three (1 = low risk, 3 = high risk). The average of these individual scores is then taken to produce the Copy Leader’s final Risk Score.
This website is operated by HDR Global Trading Limited, a company incorporated under the International Business Companies Act of 1994 of the Republic of Seychelles with a company number of 148707 and registered address at Global Gateway 8, Rue de la Perle, Providence Mahé, Seychelles (“HDR”). HDR wholly owns BitMEX, a Bitcoin-based trading platform.
Access to trading or holding positions on BitMEX is prohibited for any person or entity that is located, incorporated or otherwise established in, or a citizen or a resident of: (i) the United States of America, Québec (Canada), the Hong Kong Special Administrative Region of the People’s Republic of China, the Republic of Seychelles, Bermuda, Cuba, Crimea and Sevastopol, Iran, Syria, North Korea or Sudan; (ii) any state, country or other jurisdiction that is embargoed by the United States of America; or (iii) any other jurisdiction where the services offered by BitMEX are restricted (collectively “Restricted Jurisdictions”). If it is determined that any BitMEX user has given false representations as to their location, incorporation, establishment, citizenship or residence, or HDR detects a user is from a Restricted Jurisdiction as described above, HDR reserves the right to immediately close their accounts and liquidate any open positions. HDR may, in its sole discretion, implement controls to restrict access to the BitMEX trading platform in any of the Restricted Jurisdictions.