Understanding Profit-Sharing

How does the profit-sharing model work?


Profit-Sharing is our best method of automated trading that allows you to copy expert traders & receive 100% identical results.
The Profit-Sharing method has benefits over regular copy-trading, in which you will only pay a success fee when you have reached new profitable highs on these positions.
The Trader and subscribers become one. This ensures the perfect execution of the trading strategy from the entry to the exit.

Success fees are taken only when new highs are made in your portfolio. This is a big incentive for profit-sharing providers to achieve positive results with high-quality strategies that will perform over time.


Zignaly Profit-Sharing Presentation:

The differences between Standard Copytrading & the Profit-Sharing model: 

Standard Copytrading Profit-Sharing Model
monthly subscriptions


Free: Profits of the positions will be divided between the Investors (you), the Copytrader provider & Zignaly, with the success fee.

If the trader's success fee rate is 15%, the trader receives 10%, Zignaly receives 5% & you will receive 85%

*The success fees are only taken once a new trade is closed reaching a new profit high

While with the subscription you pay a fixed amount every month, with the profit-sharing model you would only pay an amount based on % gains when profits are made, while you wouldn't pay any % if no profits are made or losses occur.


Positions open for the Copytrader provider first and the connected users directly after


When Zignaly receives a trading signal, the position is open for the Provider first and for
all the followers after.

We work in percentages, if the entry price slightly different, when we place the take profit (or stop loss), based on percentage, the exit target may end up being slightly different. Keep in mind, if using low volume pairs or low sats price pairs, having a provider doing a market buy could create slippage.

Identical results

Instead of replicating the positions of a Copytrader into your account,
this method creates a base position, with the allocated balance of all the copiers combined.

This gives the trader and the user IDENTICAL RESULTS, as there is no difference in the entry price, dcas, stop loss, and exit prices, the % of profit is the same for all participants.


Demo Accounts accepted

Must Connect with Real Account

Options for Spot / Futures
Zignaly Exchange Accounts, Binance Exchanges
or Kucoin Exchange

Zignaly Exchange Account (Futures or Spot)

Option to disconnect leaving open positions to continue until an exit signal is provided from the Copytrader


Option to cancel open positions ending the Copytraders management over these coins

Soft Disconnect:
Currently, in the profit-sharing system, you can not disconnect immediately from a provider. When you disconnect, no new positions will open but It requires you to wait until all the open positions where you are participating have been closed.
The balance will remain locked during this time.


Success Fee:

Every time that a position is closed, it will calculate the profit/losses from the closed position.

The success fees are only taken once a new trade is closed reaching a new profit high. The success fee will only be taken from the difference between the last high and the new one.
profit levels chart example:


High-Water Mark Calculation
We are using a high-water mark, each time there are profits, and profits + current balance is above the high-water mark, the profits will be shared, however, if there are open positions with losses at that moment, the negative amount will be retained until the positions are closed.


Every time that a position is closed, we analyze the status of the current open positions.
If they are in profit (and generate new all-time high equity value), success fees will be paid, but if the current positions are in loss, we keep the current losses as a retainer. The next time that a position is closed, we calculate the pnl to balance the retain value.


Withdraw or Re-invest the profits 

You may choose to withdraw your profits back into your Zignaly exchange account, these will no longer be locked,
Or, to re-invest the profits automatically into your allocated amount. 

Connecting to a profit-sharing Copytrader:

The balance will be locked and used exclusively for copy-trading.
Demo accounts will not be able to connect to Profit-Sharing services.

Modify the allocated balance

You will be only able to increase the allocated balance. This allocated balance will be noted and used in the next open positions.
Decreasing the allocated balance is not permitted.

Decrease your allocated balance 

If you want to do this, you should disconnect yourself from the service and then connect again with the new amount. Please note there will be a processing time when disconnecting from the profit-sharing service, to process the accounting & the release/transfer of your funds.


Disconnect from the service
From the moment you disconnect from the profit-sharing service, you will not participate in any new positions.
The remaining open positions will continue until they have been closed by the trader.
At the moment that all of the positions have been closed, the remaining amount will be transferred back into your exchange wallet.


Please be aware that any investment has risks, this risk is multiplied by several factors when you are dealing with derivates. With the profit-sharing model, even when you aren't participating in a position (because you haven't entered yet,
or because you are disconnecting) your entire allocated balance is at risk. Please choose your service carefully.



Connect to a Profit Sharing Service

Was this article helpful?
15 out of 18 found this helpful
Have more questions? Submit a request



Please sign in to leave a comment.