Bitcoin-based trading software 1Broker announced a recent update which added a new classification of risk indicators for trade strategies which can be copied, the copy feature was introduced back in March. Since launching, the company’s “successful traders” list ranked users by their profit/loss in ascending order.
According to the firm, this incentivized some traders to make high-risk trades, which led to tense losses for their copiers.
The new risk indicators for the trade copy feature now incorporates a ranking algorithm with new classifications.
New methodology:
The risk level for one trade is the profit/loss percentage divided by a number of days this particular trade was open. The risk indicator calculation uses the average risk level of all shared and closed trades for the specified duration (usually “this month”).
This has the pleasant side effect that trades that were open for a very long time are treated equally to trades that were open for shorter durations. Therefore, the risk indicator estimates how fast copied positions would have risen or fallen in value.
New risk categorization:
Risk 1 – Very low
The profit/loss of closed positions changed by less than 2% per day on average.
Risk 2 – Low
The profit/loss of closed positions changed by less than 4% per day on average.
Risk 3 – Medium
The profit/loss of closed positions changed by less than 8% per day on average.
Risk 4 – High
The profit/loss of closed positions changed by less than 16% per day on average.
Risk 5 – Very high
The profit/loss of closed positions changed by more than 16% per day on average.
1Broker also introduced other improvements and bug fixes which include:
– Darkened unchecked checkboxes to improve visibility.
– Fixed a crash when the detail view of a position is displayed while the position gets closed by the trading engine.
– A removed fade-in effect from alert dialog to improve UI speed.
– Added information about how performance and other values are calculated to profile info dialog.
– Fixed issue on the login page where captcha has to be solved twice when 2FA is enabled.
– Refactored and improved the chart classes. (No visible changes)
– Added API calls for position/shared/get, social/profile_statistics and social/profile_trades.
– API returns the original Stop Loss and Take Profit values for copied positions now.
– Open positions are now ordered by date_created in ascending order instead of descending order in the API.
– Added trailing stop loss field to open positions list in the user/overview.php API method.
– Changed overnight financing charge values of market/details API to a percentage value.
– Updated API documentation accordingly.
– Fix spelling errors and other minor UI changes