Keeping traders active during high volatility seasons
As geopolitical events dominate the headlines, market volatility continues to soar. Just look at the CBOE Volatility Index which stood at 33.86 on March 10, 2022 to see the effect. In addition, oil price volatility is at historically high levels and global equity markets have been subdued due to rising global tensions.
Thanks to this continuously unpredictable volatility, thousands of traders lost money during these times, with many becoming inactive after being called on margin. Additionally, those who prefer low volatility trading might be less inclined to trade or re-deposit to their trading accounts. Now more than ever, brokers need to find innovative ways to not only retain their customers, but also encourage them to deposit into their accounts.
For brokers, the key to reducing dormant accounts and maintaining trading activity is providing strategy and confidence-building tools. Below is a list of tools that brokers may find helpful in achieving these goals.
Helping your traders understand the volatility nature of their assets can have huge benefits in building trader confidence and therefore improving your number of active traders.
Autochartist offers a comprehensive volatility analysis web component. This useful tool provides traders with insight into the typical behaviors of their assets on an hourly, daily and weekly level. This can help your traders understand when the best times to trade are based on their trading style and where to set their stop loss and take profit levels. This tool is available both as a pre-built component and as an API.
High probability setups
Traders who have lost confidence in the profitability of their trades will benefit from receiving alerts for high probability trade setups. Autochartist’s high probability email alerts are typically reserved for VIP traders, but can serve as an essential tool for reactivation and demonstration of live conversions.
We offer two high probability email alerts. The first of these is our correlative alert email. This alerts traders in cases where 3 or more types of analysis point to a particular price chart moving in the same direction. Providing this type of content to a trader who is hesitant to redeposit can give them the boost they need.
We also offer an email that details the top 5 trades we identified over the previous week. This content is extremely effective in generating a fear of missing out among merchants. It is also effective in reminding traders who have become inactive how profitable the trade can be, prompting them to redeposit and assisting your reactivation efforts.
The fact that it is fully automated and the corresponding email alert is available in 29 languages further adds to the value of this content. This means traders receive alerts while they are still fresh and tradable rather than having to wait for human analysts to gather the content. This timely approach means that our content is highly effective in driving real transactions.
Tools such as risk calculators are extremely effective in building trader confidence and improving trust between the trader and their broker. When a trader is confident in their decision and their broker, they are much more likely to trade and less likely to look elsewhere after a loss.
The Autochartist Risk Calculator allows traders to better manage their exposure and potentially avoid being called on margin. During periods of high volatility, this is extremely useful for both broker and trader, increasing the lifetime value of traders.
Alerts of high impact economic events
While no one can predict the impact of current events on market volatility, brokers should equip their traders with the tools and content they need to make the most informed decision possible. By doing so, traders and brokers can benefit from increased lifetime value.
To learn more about these and other Autochartist products, contact us at [email protected]