What is Risk Level in FXTM Invest?
What is Risk Level in FXTM Invest?
The Strategy Manager’s Risk Level is calculated based on the average daily volatility. The absolute values of all daily returns, be they positive or negative, since the first trading day until the most current one are added up and divided by the total number of trading days. For example:
The higher the average daily volatility the higher the Risk Level. For example, a high Risk Level implies an Aggressive Strategy Manger represented by 4 or 5 thunder bolts under the Risk Level column in the Top Strategy Manager Ranking page. They may potentially incur higher returns, that is, higher profits or loss.
Similarly, the lower the average daily volatility, the lower the Risk Level and the more conservative the Manager’s strategy is.
For example, a low Risk Level implies a Conservative Strategy Manager, represented by 1 or 2 thunder bolts. Conservative Strategy Managers may potentially incur lower returns, that is, lower profits or loss.
An intermediate average volatility implies a moderate Risk Level and a moderate Risk Level implies a Moderate Strategy Manger, represented by 3 thunder bolts. Moderate Strategy Managers may potentially incur medium returns, that is, medium profits or loss.
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