In periods of high volatility, financial institutions face a plethora of challenges. First on the list involves safeguarding client capital while maintaining top-tier performance. That may sound easy, but it’s not. Remember, institutions deal with anywhere from dozens to hundreds of client accounts.
Luckily, today, multi-account management tools are available. And with them, institutional-grade traders and investors can respond swiftly to market swings, mitigate risk exposure, and maximise potential earnings. What’s more, while using them, they can optimise performance with the following hacks:
1. Centralized Trade Execution
Placing the same trade on multiple accounts can be extremely hectic when you do it one by one. Also, it increases your odds of losing vast sums when the market is swinging wildly. The good news is you can avoid this predicament, provided you know how to use a multi account manager and leverage this tool’s centralized trade execution.
Centralised trade execution, as the name suggests, allows you to open the same position on multiple accounts simultaneously. You do that from a master account, and the system automatically copies the trade across all connected accounts. Allocation will match your stipulated logic, like fixed percentage, lot size, and account equity.
2. Leverage Dynamic Allocation Models
One of the best ways to take multi-account management to the next level and rake in decent profits is with dynamic allocation models. These will adjust how trades are allocated based on real-time market conditions, which is indispensable today, where markets often change in the blink of an eye. It’s more effective than depending on rigid, preset plans.
While leveraging dynamic allocation models, your trades will be adjusted based on other factors besides real-market conditions. For instance, these models can tweak trade sizes to align with each client’s risk appetite or asset volatility.
3. Use Volatility Filters
High volatility presents both earning opportunities and incredible risks. For the best outcome, you should consider combining a robust multi-account manager with volatility filters to avoid losing your clients’ money during turbulent times. The latter will use predefined parameters to measure market volatility levels and decide whether or not to execute trades. Volatility filters are like a protective shield that ensures you don’t lose too much money during overly volatile periods.
With volatility filters, you can seamlessly manage the accounts of both conservative and aggressive clients. All you have to do is either set super-strict or loose filters. You also get the opportunity to boost your win rate by unknowingly avoiding participating in unstable trading environments.
Ready to Optimise Multi-Account Management
Volatility is common in financial markets. However, things are on another level today due to numerous factors, including the significant tariff changes announced by the US president. As an institutional trader and investor in the current environment, you have to be very careful, otherwise you will lose your clients’ hard-earned money.
The key to thriving in periods of high volatility lies in optimising multi-account management. First, get the best multi-account manager tool. Then, leverage the power of centralised trade execution, dynamic allocation models, and volatility filters. That is the best way to ensure you not only survive these chaotic times but also make decent profits for your clients.
