Trading can be a risky business and many traders find it difficult to consistently generate profits on their own. This is where trading groups come in, offering a collaborative approach to trading that can potentially increase profitability and reduce risk. However, not all trading groups are created equal, and it is important to carefully consider your options before joining one. Here are 7 requirements to look for when selecting a consensus driven trading group.
One of the most important requirements for any trading group is transparency. You should be able to easily access information about the group’s trading history, including trades that were successful and those that were not. This information should be presented in a clear and concise manner, with detailed explanations of the group’s decision-making process. The group should also be willing to share their trading strategy and methodology with you, so that you can make an informed decision about whether to join.
- Member-driven (non-guru-driven)
Another important requirement for a trading group is that it should be member-driven rather than guru-driven. This means that decisions about trades and investment strategies should be made collectively by the group, rather than by a single “guru” or expert. This ensures that the group’s trading decisions are based on a broad range of perspectives and expertise, reducing the risk of bias or undue influence.
- Strong written track record
When evaluating a trading group, it is important to look at their track record. A strong written track record demonstrates that the group has a proven history of making successful trades and generating profits for its members. You should look for a track record that spans several years and includes both good and bad trades. This will give you a more complete picture of the group’s trading strategy and its effectiveness.
- Witnessed and audited
To ensure the authenticity of the track record, it is important that the group’s trades are witnessed and audited. This means that there is a third-party that monitors and verifies the group’s trading activity. This can be a regulatory body, an auditing firm, or a trusted third-party with experience in the trading industry. The group should be willing to provide evidence of this auditing, including reports and documentation.
In addition to being witnessed and audited, the group’s track record should be published. This means that it is publicly available for review and analysis. Ideally, the group should have a website or other online platform where you can access their track record, as well as other information about the group’s trading strategy and methodology.
- Experienced leadership
A trading group is only as good as its leadership. Look for a group that has experienced and knowledgeable leaders who have a proven track record of success in the trading industry. The leaders should be able to provide guidance and mentorship to members, as well as effectively manage the group’s trading activities.
- Collaborative culture
Finally, look for a trading group that has a collaborative culture. This means that members work together to make trading decisions and support each other in their trading activities. The group should have a strong sense of community, with members sharing ideas, strategies, and insights. This can help to foster a positive and supportive environment that encourages learning and growth.
In conclusion, joining a consensus driven trading group can be a great way to increase profitability and reduce risk in your trading activities. However, it is important to carefully evaluate your options and choose a group that meets the requirements outlined above. By selecting a transparent, member-driven group with a strong track record, experienced leadership, and a collaborative culture, you can increase your chances of success as a trader.