Our Trend Following Strategy

We do not try to catch bottoms or tops, we buy when a trend is confirmed and we ride that trend until it is no longer valid. We use 3 different stoploss and take profit in order to maximize our gains and lower our risk

Compound the winners

Our signals will automatically allocate a percentage of your portfolio for each trade instead of a fixed amount like many do. This allows us to compound our gains. If you use our service for a few month, you will see the position sizes grow as your equity get bigger.

Aim for the MOON

Unlike other signals services that often aim for many small gains and high winning ratio, trend following has many small losses and about 30% of winning trades. But those winning trades are big enough to cover losses and make big profits.

Kill the losers

Many signal providers do not use Stop Loss or uses a fixed % as a stop loss. Trend surfers use dynamic SL that follows the price. The result is that we cut our losses very quickly if a trade doesn’t go our way. Failed trades can result in a 0.2%-5% (Rare extreme case scenario)

Risk Management

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

Trend Following full backtest USDT results

Profitable Trades

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

Unless you are in a bull market, buying a coin and holding it long term won’t do anything good to your account. Another thing is that bull markets DO NOT LAST FOREVER. We follow the trend, up or down. The only time we are not growing our account, is in a ranging market.

 

Inevitable drawdown

Above you can see that our strategy causes drawdown up to 34%. This means, sometime in the next year or two or five years from now, there is a chance that our portfolio will be down 34% from its all time high. This is created in ranging markets, resulting with many false signals in a row . But we have put in place a safety net! We have a static stop loss at -5% of any trade, and a dynamic stop-loss that changes following the price action. Those will lower our drawdown by a lot so 37% is really an extreme case scenario.
 

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. 

Trend Following

Please note that these stats are what you can expect from any trend following strategy. The ROI may differ, but the drawdown and % of winning trades are always around these numbers. The choice is yours if this strategy fits your disposition or not.
 
How to use Zignaly and Trend Surfers

Trend Surfers on Zignaly 30 day FREE Trial!

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 signals on 3Commas

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)