Looking to become more profitable in 2021? Reflection helps you develop your skills by reviewing their effectiveness and seeking out more efficient ways to operate in the future.
Read on to join us as we reflect on last year’s major milestones, our trading signals performance, and the upcoming features & developments designed to make YOU more profitable this new year!
No time to read? Get all the important news, stats and future development plans directly from the Founder of ProfitFarmers, Matthew Tansley, in his video broadcast below!
But before we get into things, allow us to share some breaking news in the crypto-space!
Starting the year off with a BANG!
Bitcoin broke 35k (and then 40k!)
Bitcoin breaking 35k within the first week of January is one of the best surprises we had!
This was the first time Bitcoin reached this level. If anything, it seems to indicate that Bitcoin will just keep going to the moon!
US treasury allows Blockchains and Stablecoins
The United States had a pretty tough stance on blockchain technology. Recently, a US regulator said that U.S. financial institutions can use stablecoins for payment activities and allow them to participate in blockchain nodes.
This could be huge for cryptocurrency as a whole because it solidifies cryptocurrency’s use as a valid form of payment.
2021 looks like it’s going to be a year where cryptocurrencies could finally go ‘mainstream’.
XRP delisted on multiple exchange
Several exchanges including Binance.US have delisted XRP. This comes after the US SEC launched a complaint against Ripple alleging that the firm sold $1.3 billion worth of unregistered securities.
At the time of writing, Binance.com still hadn’t delisted XRP but this may change once the court ruling comes out.
Regardless of the many memes poking fun at XRP’s complications, remember to play it safe out there!
How our trading signals performed in 2020
2601 signals produced. 79% win-rate. Plenty of profitable opportunities.
Those are the headlines. If you’d prefer to see an in-depth breakdown detailing the average gains per target, average entry-zone depth and more, click here or on the button below to download our full 2020 signal performance report.
Now, in the spirit of reflection, we wish to share some valuable insights that will help you trade with our signals more profitably and effectively.
But before we get into that, let’s take a quick look at this year’s top trades:
ADXBTC takes the spotlight, with this signal’s peak gains reaching +104% in just 14 hours!
That said, this wasn’t our top performing signal in terms of peak gains. That award goes to a signal with coin pairing TROYUSDT, maxing out some peak gains at a hefty +119%!
However, TROYUSDT took about 3 months to reach those peak gains, which is why our favourite trade remains ADXBTC. See our Top 10 Trades for 2020 below:
KEY insights for becoming more profitable with ProfitFarmers Signals:
We publish complete breakdowns of our signals’ performance through our results blog on a biweekly, monthly and quarterly basis.
While it may seem like our results blog is there to show off how our signals are performing, there’s so much more to it than that.
With the right understanding, these performance breakdowns can give you key insights on how to structure your own trading strategy to become even more profitable!
Here’s our first example:
- Important introductory Info:
Before you can understand the valuable insight given from these average depth charts, there are some basics you need to know about how our trading signals work:
When following one of our trading signals, you’re given the option to choose from a selection of preset ‘strategies’, of which are Aggressive, Optimised, Standard and Defensive.
Each strategy slightly changes how the trading signal will function, but for this example we will focus on the entry price (the price you ‘enter’ a trade and purchase the coins at).
The Aggressive strategy will set your entry price ‘higher’ than the Standard strategy, and the Standard entry price is ‘higher’ than the Defensive strategy’s entry price. You can also choose your own entry price if you wish to do so.
The range between the Aggressive entry price and the Defensive entry price is called our Entry Zone, a price range that we recommend buying the coins within.
- A common mistake that reduces your profitability:
FOMO. When a new signal appears on the ProfitFarmers dashboard, it’s typical to want to rush and enter the trade immediately by selecting a higher entry price at the top of the entry zone, or even a price above the entry zone that’s equal to the current market ask price.
While this might ‘secure’ that you enter the trade, you’ll often be buying the coins at a price much higher than necessary, reducing your potential profitability.
- How to use the Average Depth % chart to combat this common mistake:
Image from ProfitFarmers 2020 Trading Signal Results
This again can be a link to the page where they can download the PDF and choose to opt-in to the stats newsletter
The Average Depth % chart shows us the average of how far a coin’s price dipped into the entry zone for all signals within a given time period.
By looking at the chart above, we can see that the price of coins on our signals during 2020 dipped into the entry zone by an average of about 40% before shooting up in value.
But what does that mean?
It means you could prevent overpaying for coins the next time you follow a trading signal. Simply set your entry price at whatever value equates to a 40% dip into the suggested entry zone for the signal.
Based on the past averages shown in the Average Depth chart, you’d still have a fair chance at getting into a trade without overpaying, increasing your potential gains.
Don’t forget, you can use signals even after they have left the original entry zone!
Following a signal: Sometimes it’s better late than never
Sometimes you’ll miss a signal while it’s within the entry zone, making it seem like you’ve lost your opportunity to earn.
This is not the case. As seen in the trade breakdown for TFUELUSDT above, there’s still ample opportunity to profit by manually joining the trade ‘late’ in order to gain from the upper targets.
In this example the price hit target 1 and 2 before returning into the entry zone (hitting target 1 only and returning to the entry zone is more common) and moving through all targets for very large gains.
For advanced traders: Don’t be afraid to chase trades that have already hit target 1, even if they don’t return to the entry zone. Apply basic Technical Analysis and look for an entry, then ride the waves up to target 2 and beyond. Statistically we have seen than 60%-70%+ of all signals produced will go on to achieve AT LEAST target 2.
ProfitFarmers progress thus far:
ProfitFarmers international public release
June 2020 was an exciting time for us! This was when we released the ProfitFarmers platform internationally. Looking back, we’re thrilled to see how well-received it’s been by our members the world around!
Mobile App on Android
In September 2020, we released version 1 of ProfitFarmers mobile application. It’s a huge step in the right direction!
With new features and improvements currently under development, get the latest updates by subscribing to our newsletter here!
Futures copy trading progress
When it was first released, members had to compare spot and futures pricing since we were still using spot trade prices for our futures signals at that time.
After a key update, we were able to implement the FUTURES pricing, eliminating the need to compare with spot prices. In both versions, members who wanted to trade FUTURES had to do it manually through Binance.
Some of our members expressed that they wanted to use the spot copy-trading abilities for FUTURES signals, so we’ve provided a temporary solution which makes this possible.
The good news is, full FUTURES copy-trading is almost ready, which will negate the need to manually trade using the data from our signals through our trading terminal.
If all goes well, this feature should be available by the end of January 2021.
Our Plans for 2021
In our previous blog we discussed that we’re looking to implement some key updates to our system.
Here’s a quick rundown of what we intend to implement by the end of this year (keep in mind that this is subject to change).
We are keen to get feedback to add more features and improvements so treat the list below as just a taster!
1. Copy our trading signals at any stage
One of the more common issues brought up by our members is that sometimes the signals bounce out of their entry zone too quickly, especially when the market is experiencing bullish trends.
This has made it harder to trade with some of our signals using our copy-trading feature, as the time they spend as a ‘fresh signal’ can be rather limited.
In light of this, we’re planning to make some changes that will allow you to copy the signals all the way up until they are closed.
As a stepping stone, we will be changing the ‘fresh signals’ section to show you more of the signals that are still in the early stages of their life cycle so that you can more easily seek out your next profitable opportunity.
2. Laddered entry prices
Simply put, instead of having just 1 entry price, we are investigating ways to allow you to input multiple entry prices on our trading signals, with a specified % of your purchase taking place at each (similar to how our take profit targets are laddered).
This would make it far easier for you to get into any trade that drops into the entry zone without needing to worry too much about picking the perfect price to get into your trade at.
3. Trader training
Some of our members have been asking for further training on how to make more out of our software, our scanners and how to level up their trading skills in general. We’re keen on making such education available for all of our members later this year.
4. Full auto trading on our platform
Some members have expressed the desire for a fully automated trading system where they’re automatically entered into a trade as soon as signals come in.
We’re investigating the workings of such a system and deciding how to best go about it.
Developing a laddered entry zone (as mentioned earlier) is a good first step towards full automation.
FinTech regulations vary for each country we operate in, making it all-the-more difficult for us to quickly navigate towards an ideal solution. Nonetheless, we’re working hard to find a solution for our members!
Hopefully, we can have a fantastic feature as such functioning before the end of this year.
5. New algorithms and trading signal strategies
As a part of our effort to maintain and improve the profitability of our trading signals, we are launching an entirely new short term swing trading strategy called “L61”.
Strategy L61 will offer higher T1 and T2 take profit targets, with greater risk / reward ratios and a sizable increase in earning potential.
Trading strategy L61 will likely be ‘powering’ many of the new trading signals appearing on our dashboard in the coming days, so keep an eye out for it!
On top of the addition of L61, we are also working on improving our current strategies for both altcoins and futures trading.
This improvement is focused on increasing T1 and T2 yield, and higher T4 earning potential.
To learn more about these new strategies, check out our latest blog post on them here!