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Ever wanted to do more with your trades? If you have a track record of successful trading, you can get paid for your strategies!
As a Vantage Signal Provider, you can trade on a cutting-edge platform while earning extra income monthly.
In this article, we will be explaining what it means to be a Signal Provider and how you can become one.
What is Vantage Copy Trading?
Copy Trading is a feature that allows any trader to mirror the trades of experienced traders with proven track records. It’s an excellent way for new traders to learn about the markets and for those who have less time to observe the markets daily.
Through Vantage Copy Trading, trades are executed automatically, replicating the strategies of seasoned traders without needing hours of market analysis.
What is a Vantage Signal Provider?
Signal Providers are the traders whose trades are copied by others.
As a Vantage Signal Provider, you share your trading portfolio and market signals with the trading community. Your trades are replicated in real-time by Copiers via the Vantage App’s Copy Trading feature.
For instance, if you buy 1 lot of Tesla stock, each Copier’s account will reflect the same transaction, provided they choose to copy your trade one-to-one. Vantage allows Copiers to configure the way that a trade is reflected into their account through Copy Modes such as fixed margins, lot sizes and multiples of the same order, as well as through Stop Loss and Take Profit levels. These configurations give them some control over the trades they copy.
By sharing your portfolio and market signals, you can help others enhance their trading skills while potentially earning an additional stream of income.
Signal Providers will also be able to receive a percentage of commission from their Copiers, otherwise known as Profit Sharing.
What is Profit Sharing?
Profit Sharing is a model that allows Signal Providers to earn a portion of their Copier’s success.
The Profit Sharing Ratio represents the percentage of “Eligible Profits for Sharing” made by a Copier that will be paid out to the Signal Provider. This ratio determines the amount of profits shared between Copiers and Signal Providers. The default is set at 0%, but can be adjusted in 5% increments up to a maximum of 50%.
The Settlement Cycle
Section A
The system calculates your Pending Profits on Settlement Day.
You have the choice to calculate settlements either daily, weekly (every Saturday) or monthly (the first calendar day of the month).
- Current Profit Sharing Ratio is the percentage of Eligible Profits for Sharing made by a Copier that will be paid out to you.
- Current Profit Sharing Ratio is set at 0% by default. The ratio ranges from 0% to 50%, with a 5% adjustable interval.
- Eligible Profits for Sharing is the positive difference between Copier’s Current Floating Profits minus High Water Mark (if any). If the difference is negative, there will be no Profit Sharing.
Scenario
Settlement Cycle
Copier = (C), Signal Provider = (SP)
(C) Current Floating Profits – (C) High Water Mark = (C) Eligible Profits for Sharing
i.e. USD 200 – USD 100 = USD 100
i.e. USD 50 – USD 100 = – USD 50 (no profit sharing)
Signal Provider sets Current Profit Sharing Ratio at 20%, Pending Shareable Profits = USD 0
(SP) Current Profit Sharing Ratio x (C) Eligible Profits for Sharing = (SP) Current Floating Profits
i.e. 20% x USD 100 = USD 20
Section B
For Current Floating Profits to become Pending Profits and be paid out to you, all profit sharing conditions must be met:
1. Profit is made when you close your trade. Your Copier has value under Shareable Profits for copying your trade.
2. Your Copier has sufficient balance for the deduction of value under Shareable Profits
3. Your Copier’s margin level remains above 100% after the deduction mentioned in 2.
Profit Sharing Calculation
Illustration 1
| Copier’s Current Floating Profits exceeds High Water Mark | Yes |
| Copier’s Eligible Profits for Sharing multiplied by the Signal Provider’s Current Profit Sharing Ratio is positive in value | Yes |
| Copier’s balance after deducting Shareable Profits is positive in value | Yes |
| Copier’s margin level after deducting Shareable Profits is above 100% | Yes |
| Copier’s account balance is above $200 | Yes |
| Pending Shareable Profits | Eligible for sharing |
Settlement Cycle
Copier = (C), Signal Provider = (SP)
(C) Current Floating Profits – (C) High Water Mark = (C) Eligible Profits for Sharing
i.e. USD 200 – USD 100 = USD 100
Signal Provider sets Current Profit Sharing Ratio at 20%
(SP) Current Profit Sharing Ratio x (C) Eligible Profits for Sharing = (C) Shareable Profits
i.e. 20% x USD 100 = USD 20
Shareable Profits = USD 20
Pending Shareable Profits = Eligible for profit sharing
Illustration 2
| Copier’s Current Floating Profits exceeds High Water Mark | Yes |
| Copier’s Eligible Profits for Sharing multiplied by the Signal Provider’s Current Profit Sharing Ratio is positive in value | No |
| Copier’s balance after deducting Shareable Profits is positive in value | No |
| Copier’s margin level after deducting Shareable Profits is above 100% | No |
| Copier’s account balance is above $200 | No |
| Pending Shareable Profits | Not eligible for sharing |
Settlement Cycle
Copier = (C), Signal Provider = (SP)
(C) Current Floating Profits – (C) High Water Mark = (C) Eligible Profits for Sharing
i.e. USD 100 – USD 200 = -USD 100
Signal Provider set Profit Sharing Rate at 20%
(SP) Current Profit Sharing Ratio x (C) Eligible Profits for Sharing = (C) Shareable Profits
i.e. 20% x -USD 100 = -USD 20
Shareable Profit = -USD 20
Pending Shareable Profits = Not eligible for profit sharing
Illustration 3
| Copier’s Current Floating Profits exceeds High Water Mark | Yes |
| Copier’s Eligible Profits for Sharing multiplied by the Signal Provider’s Current Profit Sharing Ratio is positive in value | Yes |
| Copier’s balance after deducting Shareable Profits is positive in value | Yes |
| Copier’s margin level after deducting Shareable Profits is above 100% | No |
| Copier’s account balance is above $200 | Yes |
| Pending Shareable Profits | Not eligible for sharing |
Settlement Cycle
Copier = (C),Signal Provider = (SP)
(C) Current Floating Profits – (C) High Water Mark = (C) Eligible Profits for Sharing
i.e. USD 100 – USD 200 = USD 100
Signal Provider set Current Profit Sharing Ratio at 20%
(SP) Current Profit Sharing Ratio x (C) Eligible Profits for Sharing = (C) Shareable Profits
i.e. 20% x USD 100 = USD 20
Shareable Profits = USD 20
Pending Shareable Profits = Not eligible for profit sharing
5 Benefits of Being a Vantage Signal Provider
Joining Vantage Copy Trading as a Signal Provider offers several benefits:
1. Multiple Income Streams
As a Signal Provider, you can simultaneously Manual Trade to make the most of the markets, and Copy Trade to earn extra income through Profit Sharing.
2. Multiple Strategies
Signal Providers on other platforms struggle to attract the right Copiers because of platform limitations; for instance, Copiers must copy a Signal Provider’s portfolio in its entirety. This limits the Copier’s ability to pick and choose which trades they want to copy.
On Vantage, we address this issue by developing an environment where Signal Providers can develop multiple strategies, categorising them into asset classes or nature of product. Copiers then copy the strategy itself, not the Signal Provider.
This newly added feature assists Signal Providers in attracting Copiers of all trade interest, while offering Copiers greater flexibility of choice.
3. Multiple Settlement Frequencies
Another new feature that Signal Providers can make use of is the Multiple Settlement Frequency system, where you get to choose your own payout day, either daily, weekly or monthly.
4. No Upfront Costs
There are no additional charges to becoming a Signal Provider on Vantage. However, Signal Providers must make a single, minimum deposit of USD $500 or more to be eligible, as well as possess extensive trading experience and adhere to the best industry practices.
5. Scale Your Reputation
Connect with a community of like-minded traders, build a network of Copiers, and establish yourself as a trader who others can follow.
How to Build Your Strategies
The golden rule of thumb in investing is “never put all your eggs in one basket”.
This is true for Signal Providers as well: if you do not diversify your offerings, you’d miss out on attracting the broad market of Copiers who have different trading interests, risk tolerance and capital. You could categorise your strategies according to asset class, geography, nature of product, market interest, and more; but in essence, always keep your Copiers at the top of mind. For a start, here are a few steps to building a basic strategy.
What kind of Copiers do you want to attract?
That’s the first question you need to ask yourself as a Signal Provider.
Is your strategy focused on low-risk and potentially long-term returns, or are you aiming for high-risk intraday potential rewards?
Take a look at the five main factors below you should consider to curate a Copier-centric strategy.
Five facets that make (or break) a strategy
1. Funds allocation
Our system recognises a user’s risk-tolerance based on the amount of capital allocated to the level of Stop Loss and Take Profit for each order.
This then aggregates into your Monthly Risk Band.
If you’re looking to attract low to moderate risk-takers, keep your allocated funds on the conservative side. Conversely, if you’re looking to attract high risk-takers, allocate a larger sum to each trade.
2. Products
Copiers tend to follow Signal Providers who have a well-distributed portfolio, with strategies tailored to specific asset classes.
You can have multiple strategies, but each should focus on a specific asset class or products of a similar nature.
- Focusing on an asset class: 1 strategy for major forex pairs ie GBPUSD, EURUSD, USDCAD
- Focusing on products of a similar nature: 1 strategy for American-based assets ie NASDAQ, Tesla, NVIDIA
3. Activity
Keep your trades going. Maintain consistent trading activity, and your statistics will speak for themselves, giving Copiers confidence that you’re an active participant in the markets. After all, no Copier would want to follow a Signal Provider who has been inactive.
4. Profit Sharing Ratio
If you’re new to the Copy Trading community, we’d suggest you start with a 0% profit-sharing ratio to attract a pool of Copiers.
As you grow your community through proven strategies, you can gradually increase the ratio by 5% and eventually earn as much as 50% of your Copiers’ profits as payment for your hard work.
5. Threshold for Copiers
The ‘Threshold for Copiers’ tool allows you to filter who can copy your strategy.
It’s as if to tell users, “To copy my strategy, I’d require you to have a minimum investment of USD 50, a minimum lot per order of 0.01, and a minimum multiples per order of 1.”
In addition to these settings, you have the choice to manually approve or disapprove Copiers, or let our system automatically approve them after 72 hours of their request.
At the end of the trading day, there’s no one-size fits all.
Give yourself the chance to build a few strategies and test the reception with your Copiers. Observe the popularity of different strategies, and continue adjusting and experimenting until you find a sweet spot that satisfies both you and your Copiers.
Step-by-Step Guide to Become a Vantage Copy Trading Signal Provider
If you’re interested in becoming a Vantage Copy Trading Signal Provider, here are the steps you need to follow:
1. Set your profile to public on the “Profile” page so others can view and copy your trades.
2. Describe your trading strategy on the “Info” tab to help others assess your style before copying.
Conclusion
Partnering with Vantage as a Signal Provider offers numerous benefits, including a diverse range of assets, flexible deposit methods, exceptional 24/7 customer service, and a user-friendly mobile app.
By becoming a Signal Provider on Vantage, you may also find great opportunities to build your own reputation and credibility within the trading community.
Moreover, you can connect your MT4/MT5 account to elevate your trading experience.
Don’t wait – download the Vantage App today and embark on your journey as a Signal Provider. Find out more about Vantage Copy Trading here.
