How to choose the best strategies to sync
Using Synchronized Strategies, you will be able to choose various strategies from other users, thus agreeing on the strategy to be followed. But choosing the best ones to sync is necessary to analyze some factors, after all, you want to have the best performance, right?
Understanding Risk Level
Each sync wallet has a volatility value that is updated daily, this volatility is a measure of how extreme the wallet’s balance fluctuations are, we will also daily update a global platform volatility statistic, which would be the average volatility of all strategies wallets.
So you can choose what kind of risk you want to take when analyzing a user’s strategy, for this, the strategy’s Risk Level is calculated by comparing wallet volatility with overall volatility and is presented on a scale of 1 to 9 as shown below:
Conservative • 1-3
Suitable for users who are comfortable with accepting lower returns for greater liquidity and / or stability. Usually a conservative user mainly seeks to minimize risks and capital losses.
Suitable for users who are willing to accept modest risks to pursue higher long-term returns. A moderate user may suffer a short term loss and gain less liquidity in exchange for long term appreciation.
Agressive • 7-9
Suitable for users who value maximizing long-term returns and are willing to accept substantial risks, it can withstand extensive volatility and significant losses. Liquidity is generally not a concern for this user profile.
Results are very important, you do not want to follow who is not showing positive performance, correct? Then an analysis of the current strategy and its results, to synchronize your wallet with the wallet of those who already have good results.
For this you can check what is the current percentage of profit of the strategy creator, as well as how many people are already following him, how much he has in his custody, how many operations have been performed and the total time that the strategy is already online.
So an analysis of the strategy to be followed is paramount, to check if it is a good strategy, if you are aware of the risks, if have a profitability within your expectation, if are delivering positive results in recent weeks.
Another issue is the strategy signup value which is set by the strategy creator, you will have to consider if this value will be commensurate with the profit you will receive.
It may be that the amount of capital you will make available for a strategy may not be enough to make a profit that pays for the value of signing up for a particular wallet. That is why it is important to analyze every detail.
Remember that when you sync your wallet and pay the subscription fee, the sync will automatically renew monthly, using your balance for renewal. But relax, you can choose to unfollow and unsubscribe from your wallet at any time.
But beware, if for some reason you forgot to stop following a strategy, it automatically renewed, and if you cancel later, you will not be refunded. Please note that if there is no balance for renewal, a message will be sent and the renewal in the wallet that was already synchronized will not be made.
Subscription is done in the base currency of the strategy, so if you have no balance in the base currency, a currency conversion will be performed, thus consuming trading fees. They are small, but it is important to keep this well informed.
As with all operations performed by the strategy creator, fees will also be charged for each operation. As is usually applied in any asset exchange. So pay attention to the amount of operations / time of the strategy to be synchronized. The profit may be being consumed by operating fees.