Understanding Profit-Sharing

How does the profit-sharing model work?

Profit-Sharing is our best method of automated trading that allows you to allocated funds to expert traders, receiving 100% identical results.

The Profit-Sharing method has benefits over regular copy-trading. With Profit Sharing, you will only pay to the traders a success fee when you have reached new profitable highs, instead of paying monthly without taking into account the results. This is a big incentive for profit-sharing providers to achieve positive results with high-quality strategies that will perform over time.

Another good point about Profit-Sharing is that no minimum investment is required. You can invest from 1 USDT to whatever amount you want to. 

Some important concepts related with Profit-Sharing:

• Connecting to a Profit Sharing Service
• Withdraw or Re-invest the profits
• Modify the allocated balance
• Decrease your allocated balance
• Success Fee
• High-Water Mark Calculation
• Retain

Connecting to a Profit-sharing service:

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. 

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 

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.

Retain

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.

Warning