How Covesting Traders Profit During A Sideways Trend

The crypto market has been at a standstill for weeks after one of the worst monthly corrections on record. Due to the always-on, 24/7 activity of the crypto market, these past weeks have felt like an eternity.

Bulls have been unable to get Bitcoin, Ethereum, Litecoin, and other assets back on an upward trajectory, but bears have also failed to produce any further lows. The stalemate has caused incredible boredom in crypto, represented by both dwindling trading volume and volatility.

However, during this ever tightening trading range, a subset of traders – called strategy managers – were somehow able to be effective and produce more than 20,000% profits. Here’s more information on how to trade a sideways trading range, and how Covesting strategy managers were able to use these strategies effectively to keep gains coming even while the market was at a standstill.

The Psychology Of A Sideways Market

Sideways price action always feels like such a drag or a grind. But that’s precisely why when sideways phases end, the next move tends to be some of the biggest and most significant. Sideways trading ranges tend to appear after a massive move that leaves both sides of the market bewildered and nervous to take new positions.

As the sideways range continues, those who were yet to close out positions begin to do so, all while new traders begin to open new positions due to the lack of support being breached. This keeps the standstill going for days, weeks, and even months at a time.

Volatility decreases, and technical indicators begin to tighten. This is a sign of a confused market nearing an exhaustion point. All the traders that enter new positions have become bored and frustrated with a lack of movement, and can start closing out trades to wait on the sidelines.

It is when most sides of the trade are ready to sit it out, call it quits, and have suffered losses due to the chop and stop losses being hit that things finally break out. Even then, it isn’t always clear if the move is a fake out or a clear signal to go long or short. 

The Way To Trade And Survive A Sideways Phase

Even more frustrating, is that low volatility phases tend to cause explosive moves when they finally resolve, sitting on the sidelines can mean the move is over by the time a trader realizes what is going on. It takes years, and sometimes decades of skills to recognize when these rare market phases occur where there’s a distinct lack of a trend.

Trading sideways markets is a lot different than trading with or against a trend. As the saying goes, the trend is your friend and most positions should be taken with the primary trend. Hedge positions, or strategic bets that markets could soon reverse are a completely different story and are taken against the trend. 

But when there’s no clear trend at all, markets can feel boring and almost entirely not worth the time investment for what little profits are possible. However, on platforms that allow margin trading with Bitcoin, leverage is often offered that lets traders amplify the profitability of their positions. Such leverage also increases the risk associated with any positions, so careful attention to stop loss placement and risk management is necessary. 

Leverage uses account margin and allows the trader to open a position much larger than what their capital would otherwise allow for. Leverage goes as high as 100x in crypto and as much as 1000x in forex. A 5% move with 100x leverage, is the equivalent of a 500% move, which makes profitably trading increasingly tight ranges possible. 

How Covesting Strategy Managers Reached 20,000% In Profits 

Now that the psychology and technical strategies are out of the way, it is easier to explain why Covesting strategy managers were able to reach 20,000 % during a sideways phase. The Covesting copy trading module is available on the award-winning margin trading platform PrimeXBT. Using PrimeXBT, traders can open margin accounts using BTC, ETH, USDC, or USDT.

With a funded margin account, traders can take advantage of leveraged long and short positions using CFDs on crypto, stock indices, commodities, and forex. Covesting strategy managers have access to the full suite of advanced trading tools offered on PrimeXBT, all the way down to the built-in charting software from TradingView.

Strategy managers build up their following and skillset, with the goal of reaching the highest total profits which will earn them the top spot on the global leaderboard system. The Covesting leaderboards feature fully transparent risk and success metrics so that other users on the platform – followers – can pick the right strategy manager for them.

How To Copy Trade During A Tight Trading Range

Followers can sort using filters to find the right trader to suit their personal risk appetite or profit goals, and can help newcomers avoid early losses associated with learning the ropes. In fact, most traders lose as much as 90% of their capital during the first 90 days of trading. But with Covesting, followers can access strategy managers with 20,000% profits and copy their trades.

Followers can also utilize tools to take profit, set a stop loss, and manage followings to build a diverse portfolio of skilled strategy managers. A five-star rating system also helps to make the choice of which strategy to follow easier, by highlighting those that pay closer attention to safety, and factors like margin allocation.

Rather than getting chopped out with losses, or giving up completely during a sideways trend, anyone can take advantage of Covesting and leverage the skills of a strategy manager with a proven track record of building total profits – total profits that the follower earns a piece of with each successful copied trade.

The next time you find yourself frustrated with a sideways trend, consider letting a strategy manager navigate the trading range for you, at least until the range breaks and markets can resume to normal.