As geopolitical events grab the headlines, market volatility continues to soar. You only need to look at the CBOE Volatility Index which stood at 33.86 on March 10, 2022 to see the effect. Furthermore, oil price volatility is at historic high levels, and global stock markets have been subdued due to rising global tensions.
Thanks to this continually unpredictable volatility, thousands of traders have lost money during these times, many going dormant following being margin called. Furthermore, those who prefer low volatility trading might be less inclined to trade or make a redeposit in their trading accounts. Now, more than ever, brokers need to find innovative ways not just to retain clients but encourage them to deposit in their accounts.
For brokers, the key to reducing dormant accounts and keeping up their trader activity lies in providing strategy and confidence-building tools. Below is a list of tools that brokers may find useful in achieving these goals.
Volatility Analysis
Helping your traders understand the nature of their assets’ volatility can have huge confidence-building benefits for traders, and as a result, improve your numbers of active traders.
Autochartist offers a comprehensive volatility analysis web component. This useful tool provides traders with insights into their assets’ usual behaviours on the hourly, daily, and weekly levels. This can help your traders understand what the best times are to trade according to their trading style as well as where to set their stop loss and take profit levels. This tool is available as both a pre-built component and as an API.
High Probability Setups
Traders who have lost faith in the profitability of their trades will benefit from receiving alerts for high probability trade setups. The Autochartist high probability email alerts are usually reserved for VIP traders but can serve as a vital tool for reactivation and demo to live conversions.
We offer two high probability email alerts. The first of these is our correlating alert email. This alerts traders to instances where 3 or more analysis types point to a particular price chart moving in the same direction. Providing this kind of content to a trader who is hesitant to redeposit can give them the push they need.
We also offer a mail which details the top 5 trades we have identified from the previous week. This content is extremely effective in generating a fear of missing out among traders. It is also effective in reminding traders who have gone dormant how profitable trading can be, prompting them to redeposit and aiding your re-activation efforts.
Further adding to the value of this content is the fact that it is fully automated, and the correlating alerts email is available in 29 languages. This means traders receive alerts while they are still fresh and tradeable rather than having to wait for human analysts to put together the content. This timely approach means our content is highly effective in generating actual trades.
Risk Calculator
Tools like risk calculators are extremely effective in both building confidence in traders and improving trust between the trader and their broker. When a trader has confidence in their decision and their broker they are significantly more likely to trade and less likely to look elsewhere after a loss.
The Autochartist risk calculator lets traders better manage their exposure and potentially avoid being margin called. During periods of high volatility, this is extremely helpful to both broker and trader, increasing the traders’ lifetime value.
High Impact Economic Event Alerts
While no one is able to forecast how current events will impact market volatility, brokers should be equipping their traders with the tools and content they need to make the most informed decision possible. By doing so, both traders and brokers can benefit from increased lifetime value.
To find out more about these and other Autochartist products, contact us at sales@autochartist.com