👥Social trading
Now available
Now available
Social trading is a revolutionary feature in terms of accessibility. It allows investors and top traders to collaborate, which helps investors to benefit from traders' performances.
The best traders on Ago and their partners can create strategies and submit them to Ago for consideration. Once available, each user can easily invest in these funds and receive returns through the appreciation of their shares, based on the asset manager's performance. In case of loss, the entire pool is affected.
Example: Let's consider a pool with assets under management (AUM) of $900. If you add $100, your shares represent 10% of the AUM: ($100 / $1 000). If, after 2 months, the manager achieves a performance of +50%, the pool will be $1 500 AUM. Your share will be valued at $150 ($100 + 50%). If 10 other users each add $100, the AUM will be $2 500. But your share will still be valued at $150. This is because you do not profit from other users' funds - only the trading performance impacts your performance as an investor.
This method is the most optimized for compounding returns. On the other hand, asset managers will naturally receive a portion of the profits generated, which they will define upon the creation of the pool and will be visible to investors before investing in it.
To learn how to use social trading, visit: Social trading.
If you would like to become a manager, send us an email with a copy of your strategy. An expert will review your strategy, which will then need to be approved and validated by the DAO.