Most services look to differentiate themselves from others with better returns, better curves in the service's chart, lower drawdowns. But the truth is that there are many ways to differentiate or stand out from other services within the Zignaly Marketplace. And we at Zignaly will seek to generate tools that allow users to identify the Traders from the Gamblers.
Providing detailed information in the description, explaining how your strategy works (at least a small part), what they can find if they decide to follow you, are some things that very few providers within the Marketplace decide to give importance and it is certainly something key to standing out from the rest.
Luckily, this is not the only thing that we can contribute externally to our strategy to the users that decide to follow us. There are certain intangible attitudes that in the long term make a user who decides to disconnect from our services trust us again.
💡 The purpose of this article is to provide some of these tips on how to have good practices as a Trader and Provider of service within Zignaly.
In this Article
The purpose of this section is to build trust with followers or potential followers, here we should put who we are, what is our experience, what we hope to achieve by offering our service, both long and short term.
The most common mistake is to make something very short, just to complete this section, or to talk about the strategy and the profitability we expect to obtain.
The objective of About Us is not that, but to share what we can bring as providers to our future followers, and to let them know that we are not here for a few months and we will leave when the market does not perform well. The more you can tell about yourself or the team of traders who manage the service and its short and long-term goals, the better.
Keep in mind that the only way they will understand your strategy and trust that you are the right trader for their investor profile is what you put in your profile.
This is where we can talk about our strategy, and what we hope to achieve. Things we can include:
Do we use fixed or dynamic TPs?
How many TPs do we use?
Do we use SL? What type of SL do we use?
Will we use DCA? How many?
How many positions will we open simultaneously?
How will we control the risk of the strategy or what PnL is usual to have in open positions?
Images of our backtest (if we have them)
The possibilities are endless and no one is better than the trader himself to know what to share here or not. But always the more information you can share, the easier it will be for future followers to trust the strategy.
Something that very few do and is very useful for the followers is that the trader tells possible atypical situations that may present in certain market situations. After all, it is the service provider who knows the strategy best and knows what can happen in each of the scenarios.
We should try to communicate some possible out-of-the-ordinary situations and how we expect to respond to them. Although we always have the Feed to give timely updates, at least we show that unexpected things can happen, but we are prepared for it.
Who we are?
In this section, we can put our country and what the users can name us. It doesn't need to be our real name, we can use the name of the service, or the name of our brand.
This can be seen as something not very important in some cases, but it is still the identity of the trader or traders who manage the service. And in many cases, it generates empathy with some users who share their nationality with the trader.
Zignaly maintains that every service should have a means of contact to which a user can communicate with the service provider.
Some decide to use the mail, a telegram channel, or even ask us to open a Discord channel within our own official channel. We consider this last option to be the best alternative, as long as the trader keeps an eye on this channel and gives feedback to the followers.
Communication is extremely important for a service, especially when market situations become complicated.
Finally, the last two categories that our followers will be able to see and can influence when making a decision on whether our strategy is right for them or not are:
We have a specific article in this guide with all the details for this topic, you can check it out here: Chapter 5: Success Fees
This is one of the last options we've added, and we plan to give it much more importance in the future. It is key for followers to know how much of their capital may be at risk if they decide to follow our strategy.
It is important that we decide on a correct number and do not place a value just because. If this value is exceeded the Zignaly team can apply measures and in the worst-case scenario, if the trader does not act under his own strategy and reduces it, we could close the position and take more drastic measures with the provider. Our intention is not to limit or interfere with traders' strategies, but it is our priority that all traders follow what they say is their strategy. And a trader must know how much is the maximum DD his strategy could experience, and in case it is reached he must have an action plan.
A frequent question is whether it only considers the negative PnL of the open positions or if it includes the maximum reduction of the maximum that the account reached? The answer is the second one, the Maximum Drawdown will take into account the drawdown that has been generated from the maximum that the account has reached by closed positions plus the negative PnL that we have at this moment in the account.
At the beginning of the article, I mentioned that some practices can make a user who has decided to disconnect trust us again in the future. This is nothing more than treating them the same way we expect to be treated by others, communicating correctly, being clear, and thinking about our followers in the long term.
Unfortunately, there is always the possibility that traders may try to take advantage of followers when their intentions are not good. From Zignaly we will always try to identify them, but it is difficult to do so. That is why a good way to differentiate yourself is to act in consequence, how can a trader do this? Here are some examples:
Communicate every time something out of the ordinary happens, all services have feeds to make communications and announcements. Update your followers of any unexpected event or situation that may affect what they are used to. A sudden market movement, a problem in your strategy, a modification, or even if the service provider is going to take a vacation and be less active. All these things are valued by the followers.
Do not promise unrealistic things: It is common to make promises of profitability or results that are difficult to achieve. It generates false expectations in the followers and can cause frustration.
Do not keep positions open forever: A common practice is not to close a losing position, just because it will affect in a bad way the statistics of the service. This is something that, unfortunately, we have seen a lot in the last months and in the future will be solved with our Hard Disconnection. Our experience so far has shown us that all traders who practiced this type of activity have lost a lot of users and in the long run suffered a great opportunity cost, both in returns for the service and possible success fee that they did not charge for keeping these positions open.
💡 Remember that you can always contact your Account Manager who will be happy to evaluate your profile, answer your questions about how to act in any situation, and support you in this experience. The goal of the Success Traders team is to help you reach the highest possible potential within Zignaly.