Risk Management is very important in any trading strategy.
At this moment, Zignaly doesn’t provide the Reverse-DCA option (Add to winning trade). So this forces us to use X% for each pair. The request for this feature has been made and we are waiting for it to be develop.
When this feature will be implemented, we will use it to open trade with a small % of our equity. As the trend will confirm, we will add more and more equity to the trade. This will allow us to reduce losses caused by false signals and lower our drawdown.
Until Reverse-DCA is available, we will use 2 Stop Loss in order to protect ourselves from a sudden spike in the markets against our position. The first is our dynamic SL that moves with the price and the second is fixed at 5% from our base trade. The 5% SL is temporary until the feature is implemented. Our stop-loss will rarely be hit as false signals are usually closed before -5%.
The dynamic Stop-loss is different for each trade and move as the trade develops. It can be compared to a trailing stop-loss with the difference that it is not fixed in advance and won’t remain the same % as the time passes.
How to surf the trends with our signals
We suggest that if you follow our signals, you should do it for at least 6 months. You need to trust our strategy. There will be losing trades. But remember, those losing trades are tiny compared to the winning ones.
The reason there are so many losing trades is that we receive many false signals during ranging markets. We trade in and out following the price.
The reason why we don’t need more than 30% of winning trades is that when we catch a trend, especially in crypto, we can ride it 50%, 70% or 100+%. Those easily beat the losing trades of 0.2% to 5%.
So don’t panic if you have 10 losing trades in a row. You just need 1 winner to bring you to the moon.
Let the strategy run itself, do not interfere.
If you are too emotional, this strategy is not for you. You need to trust and let the strategy do what it is made to do. That might take time. But your patience will pay.
Backtested for the best results
You might think that 33% profitable trade is very low and you are right! But this is more than enough to give us huge ROI of 250%+ per year.
Most signals providers try to attract customers with 96%+ winning trades, but what these don’t say, is that often they don’t use a stop loss (keep their trade open forever and don’t calculate it in their results), or they have many small wins and huge losses.
We do exactly the opposite of them, we have 2 tight stop-loss (which result in many small losses) and we let our winning trades run until the trend dies (which results in massive winning trades).
Buy & Hold is a terrible strategy
New features will be implemented soon on 3Commas that will lower these number even more. REVERSE-DCA, this feature will allow us to buy or sell only a small amount of a coin and buy or sell more and more as the trend is confirmed.
Zignaly is a signal platform that allows you to choose between multiple signal providers to automatically trade using their signals. One of the easiest ways to automate your trades. Get 45 day Free trial (no credit card needed). 10$/Month after trial (no obligation).
Trend Surfers on 3Commas (Coming soon)
3Commas is an all in one trading platform offering many advanced tools for traders. You will be able to easily follow all our signals with the 3Commas bots. (NOT AVAILABLE YET)