Apr 13, 2021
Providers FAQs
Find here the answer to all the most common questions
Summary
In this section, you will find every type of question and their answers with relation to our Zignaly Providers and the Zignaly platform more in general, from technical questions to trading related questions, how to connect to the service, questions related to the allocation, and more.
They are divided into sections to make your research easier.
Sections
- First and Foremost
- The Basics
- Technical Questions
- Trading FAQs
- BTC Futures Provider FAQs
- Altcoins Spot Provider FAQs
First and Foremost
These Providers are for you if the following points resonate with you:
The market is, in Warren Buffett’s words: “a device for transferring money from the impatient to the patient.” As such you know that trading cannot be forced and that the market will offer opportunities at its own peace, and that your investment will only pay off with a medium to long term horizon in mind (min. 6 months).
You understand that both losses and winnings are entirely part of the business, and that both need to be accepted; we cannot control the market, but we can control what we do in the market.
Here we take frequent small losses, that at times can accumulate and become drawdowns, and infrequent very large winnings. The strategy has got what is called a “positive expectancy”, and in the long run, the winnings will largely pay for the losses.
This strategy can make you at times feel uncomfortable, and that’s ok. This is supposed to make the most of what the market has to offer, not necessarily to make us feel good at all times.
These Providers are NOT for you if:
you think you are going to become a millionaire within the next month with a $10 initial allocation. Absolutely nothing wrong with small allocations, as long you have realistic expectations.
You expect this provider to pay you a nice stable monthly paycheck.
You are not ok with any of the points above.
The Basics
To copy our Profit Sharing Providers you will need:
- A Zignaly Futures Exchange account for the BTC Futures Provider;
- A Zignaly Spot Exchange account for the Altcoins Spot Provider;
- USDT deposited on each of the Zignaly exchange accounts (there is no min or max USDT allocation);
- To read the Guides at www.cryptolivermore.com to understand how the systems work and what to expect.
- To split your allocation between the BTC Futures and the Altcoins Spot Providers.
NOTE: Check the Technical Questions below for how to deposit and how to connect.
Technical Questions
For any technical question related to deposit and withdrawal, how to transfer assets cheaply, how to connect your account, Zignaly account related questions, etc, here are your resources:
- Zignaly guide on how to deposit: https://help.zignaly.com/hc/en-us/articles/360016066780-Zignaly-Exchange-Account-Deposit
- Official Zignaly Telegram group: https://t.me/ZignalyHQ
- Official Zignaly Discord group: https://discord.gg/9cpUqCF
- Step by step guide on how to connect to our providers: www.cryptolivermore.com
- How the Zignaly Account works: https://help.zignaly.com/hc/en-us/articles/360016705880-Security-of-Zignaly
- How Profit Sharing Works: https://www.youtube.com/watch?v=NLRGyM14nFY&t=118s
Trading FAQ
Q: I see mostly losing positions being closed and very few winning ones, how does this work?
A: This is how the strategy works, we cut our losses short and let our winners run, we minimize our losses and maximize our profits. This means that losses will often be realized quickly and when they are very small, while we will let our winners opened for as long as possible, in order to capture the most profits.
This chart (real trades) should give you a good idea of what that means in practical terms.
Performances are measured in R-multiples, where R means “risk”, or the amount of risk that you are assuming on any given trade, which for the sake of this example is quantified as “1”.
As you can see most of the trades will last the least amount of time, and will likely be small losers; the longer the holding period, the more chances of a trade being profitable. In the long term, our winner will largely outperform our losers.
Q: When do you close your positions?
A: We will close a position whenever the system will tell us to do so, or when a stop-loss order is hit. We don’t use pre-determined targets.
You can learn more about how the systems work by checking the Guides at www.cryptolivermore.com (recommended).
Q: Do you also trade BTC pairs or only USDT pairs?
A: Just USDT at the moment. However, we will possibly start trading BTC pairs as soon as Zignaly makes profit sharing available for the BitMex exchange, which is in their plans.
Q: Will all the trades made by your Profit Sharing Provider being copied automatically if I use your strategy?
A: That is correct; nothing needs to be done on your side once you are connected, as we manage not just entry and exits, but also position sizing, risk and money management, and many other elements that are crucial for the success of the strategy.
Q: How about account sizing? Let’s say your account has 2000usd and I have 800usd. Is this a problem?
A: It used to be with the old type of providers, the copy trading ones (minimum investment was $2000), but now with the new Profit Sharing model this issue doesn’t subsist anymore. So short answer, that’s not a problem.
Q: I have joined your strategies. How to confirm if that they are running fine?
A: have you followed any Profit Sharing provider before, or is it the first time?
If you were following someone else and receiving signals from them, then your connection is fine and you will receive signals from us too.
However, you can double check this by comparing our provider’s dashboard with your own dashboard. From the date of your connection, you should see the same new positions opened on both of them (if there are any).
Keep in mind that our strategy doesn’t have a high transaction frequency, and gives the best results in the long run, so we don’t open new positions too often (not every day at least).
Q: any insights as to when might be a good time to enter your strategies?
A: in general every time one of our strategies is idle is a good time, which is counter-intuitive for most people but makes sense if you consider that in that way, whenever we start opening positions and the positions start working, you will already be fully on-board.
Of course, there might be some drawdowns when you start copying and that is entirely part of the strategy and something that is not possible to predict.
If you are considering allocating a large sum, drawdowns can be a good opportunity to do so, for example adding half of your allocation at every -10%, but keep in mind that sometimes waiting for a drawdown can also be risky, as they might not come and the account could just go up for a while leaving you beyond, so keep in mind this potential trade-off too.
Q: Do you trade manually or do you use bots?
A: Using bots (or technically algorithmic trading), is nothing less, nothing more than a tool that a trader can use to automate his/her strategies, and we use it to automate some, but not all, of the aspects of our strategies as well.
Automation in itself doesn’t add anything to the trading activity, is simply something that can prove convenient to use for a trader. This eventually becomes more of a “must” when there is a high frequency of trades involved in the system, but this is not our case, as both our systems have a relatively low number of trades at any given time.
The bottom line is to have a precise set of rules (a strategy) and stick to it. How you do that (manually or in an automated way) doesn’t make any difference in terms of performance.
Q: I noticed that you have been using different position size for every new trade.
Is this part of your strategy, or a technical error or bug of the platform?
A: Trading size is determined dynamically, and it will change with each new position. So not a bug.
Q: How much do you consider having invested in the providers to start?
A: That is really up to you and your situation.
It should be an amount that you are willing to risk entirely (due to third party risk, potential exchange hacks, etc), but also an amount that makes a difference for you (the potential gains need to be meaningful).
You might want to start with a smaller amount if you want to test it out and then add to it when you feel more comfortable and realize that these strategies are for you. You don’t need to disconnect from the Profit Sharing service in order to add funds to it, so you won’t miss out on trades if you decide to add later on.
The most important thing, however, is to split between the two providers BTC Futures and Altcoins Spot for the best results.
BTC Futures Provider FAQ
Q: I have started following your BTC Futures Profit Sharing Provider, however I have noticed that your trading frequency is much lower compared to that of other providers, how does that works?
A: That is correct, we don’t have a high trading frequency as we don’t aim at frequent but very small profits, instead, the goal of our strategy is to catch very big moves when the opportunity presents itself, while at the same time managing the risk very carefully. This means that sometimes we can also hold positions for several weeks.
In this Guide, you can find all the details regarding the BTC futures strategy.
Q: Does your BTC Futures Profit Sharing Provider only operates in the BTC/USDT Perpetual Futures market?
A: Correct, this particular provider only trades BTC Futures and there is a specific reason for that (as explained in our Guides) and that is that the two systems, the BTC Futures, and the Altcoins Spot, are made to be used in combination and work together, reason why we always recommend to split the allocation between the two.
The two systems together will give you exposure to both BTC and Alts while keeping your account base currency in stable coins (USDt), so if Alts outperform BTC you will still get that upside, and the same will happen when BTC outperform Alts.
Q: Is it correct to say that in a situations where a winning position is kept open for a long time, new investors will not have a possibility to get in on that specific position?
A: Correct, once a trade has been opened, there is (obviously) no way for new investors to jump on the currently open trade, in fact, as also stated in the Guides, these systems are made to build long-term wealth, and they need to be followed for the long term (minimum 6 months), for the investors to reap the rewards.
Q: In a bull market many systems seems to perform well, but how would your system perform in less favorable conditions?
A: Our BTC Futures Provider is among those that have by now been on Zignaly for the longest time/with best results, in fact since the service inception our provider has outperformed the BTC performance, while at the same time limiting the drawdowns compared to what BTC itself has experienced, which in technical terms is called risk-adjusted returns.
Moreover, although the strategy was not available on Zignaly back then (as Zignaly didn’t exist yet), our strategy has managed to have positive performances even during bear market years. For example in 2018, while the entire crypto space was experiencing drawdowns of -80%, this same strategy has instead performed a +80%.
You can find more about this, and all the relevant stats, in our Guide.
Q: What is difference between your BTC Futures service and if I would open the same position by myself? Is just “buy low, sell high?”.
A: The BTC Futures Strategy results are very different compared to those that you might achieve yourself, or by just “buy and holding”.
This strategy had, since 2016, outperformed BTC “buy and hold” by 16x by July 2020 (much more by now), and with a maximum drawdown much lower compared to that of BTC itself. This is mostly due to the position management and to the fact that we can trade both long and short.
You can find more about this, and all the relevant stats, in our Guide.
Altcoins Spot Provider FAQ
Q: In the event of a strong move in BTC (especially on the downside) will you still keep your Altcoins as they are, use DCA, or sell them?
A: The BTC and the Altcoins strategy are completely independent, so what we do with Alts does not necessarily depend on what BTC does.
Apart from that we never use DCA to average down.
Q: On your Altcoins Spot Priovider I see some positions with big percentage gains not closed yet. Do the copiers close the positions themselves?
A: no, we take care of everything for our copiers so they don’t need to touch any position.
Our style consists of holding positions for as long as necessary if we detect a probability that the price will keep moving in our direction, and depending on the market’s conditions that can sometimes be months (but not always).
This ensures the maximum possible profit squeezed out of the market in the long run, while keeping risk in check.
Q: Is there a maximum number of positions for your Altcoins Spot Profit Sharing Provider?
A: No we don’t have a pre-determined number of positions. We determine the number of positions according to our risk, our allocation, and the market in general.
Q: I see that the Altcoins Spot Strategy has already opened several profitable positions. I’m worried about a lack of opening positions when I join now.
A: When you approach our Strategies, you have to do it with a long-term mindset.
Our most profitable positions will always tend to be the oldest ones, as we only hold onto winners, that’s why it is important to stick to the strategy for at least a few months (a minimum of 6) so that every time a new cycle starts you are in from the very first position and get exactly the same profits that we show.
However this obviously doesn’t mean that entering at a later time cannot be very profitable, but there is no way to predict that, as it entirely depends on the market. For example, the market might dump tomorrow and we could free up a lot of capital, and then maybe open a lot of new positions in a few days, in which case you would find yourself mostly invested even if you joined when many positions were already opened.
This is also the reason why is important to always have an allocation already deposited and ready to be used, and also why we strongly recommend having capital split between the two strategies, as they work together.
Disclaimer (Terms and Conditions)
Please follow the following link to access the full Disclaimer and Terms and Conditions that you need to accept in order to access this service: https://crypto-livermore.medium.com/disclaimer-terms-and-conditions-3468ac3a5aab
By accessing or using any of the services here described you confirm that you have read, understood, and accepted the Terms and Conditions (Disclaimer) and that you agree to comply with them. If you do not agree to the Terms and Conditions (Disclaimer) described in the link above (https://crypto-livermore.medium.com/disclaimer-terms-and-conditions-3468ac3a5aab), please do not use or access (or continue to use or access) any of the services here described.
