I’m after some insights on the AvaProtect service AvaTrade offer. Here it is for those that haven’t seen it https://www.avatrade.co.uk/trading-info/avaprotect. And you can see it in the image attached from my Ava account in the order panel to the right.

I guess my question is, could it play a part in my risk management strategy? My immediate concern is about the costs knocking out my profits (it feels spenny) but I’m wondering if people have tried it and found it useful, cost-effective etc. Any benefits and risks to utilizing it for day trading would be appreciated.

I haven’t seen this sort of service at other trading platforms I’ve used.

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[Christian HarrisParticipant]

As you said, Emanuel, AvaProtect is particularly useful if you want to mitigate the risk of significant losses in volatile markets. It provides peace of mind by offering a safety net.

One important aspect to consider with AvaProtect is its cost structure. Even if your trade ends in profit, the non-refundable fee paid for protection could reduce your overall returns, especially when trading small pips/points.

I’ve not used it personally, so could you use the service with a demo account to become familiar with it before risking real money?

If so, I’d plan some ‘regular’ trades using traditional TP and SL and then compare the cost to trading with AvaProtect.

Let me know how you get on…

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[Emanuel]

A demo account is the way to go I think and I’ve just opened one so will give it a whirl and see whether it makes sense from a cost perspective.

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[Sab303]

I’ve looked at AvaProtect before and had some concerns about using it for day trading:

• The cost of AvaProtect varies depending on market volatility and your position. It’s usually more expensive when volatility is high which might be where you’re aiming your day trades.
• If you use it for all your trades and make a large number of day trades (like many do), then the premiums can start to counteract the benefits especially if your win rate is healthy.
• I prefer focusing on risk management tools like simple stop loss orders and take profit levels. They are easy to set up and broker agnostic rather than adapting your trading style specifically to Ava.

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[Emanuel]

These echo some of my worries but I’m testing it out in Ava’s paper trading account to confirm my suspicions. I’m already seeing the premium spike when volatility picks up in the foreign exchange market.

Cheers for sharing your findings though.

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