This depends on your point of view, but Social Trading is designed to make being a strategy provider simple and convenient.
- Billing period: this necessary period of time is used to calculate a strategy’s metrics, but may present a rigid timeframe for strategy providers.
- Performance fee payouts: Only occurs at the end of a billing period.
- Managing metrics: Return and Risk are metrics that a strategy presents to investors; Risk is only available for Social Standard and Social Pro accounts.
- Drawdown: Accumulated loss in a strategy eats into performance fee, which can lower overall earnings; in other words, the losses hit a little harder.
- Untimely investments: Unfortunately even if a strategy provider is profitable, an investor that starts copying their strategy, later on, may not see the same amount of profit as the strategy provider, resulting in dissatisfaction.
These conditions can be controlled with good risk management and careful consideration. We recommend reading more about what goes into a strategy to better manage them.