This is my second and last Zignaly testing report. Why is it the last one? Because I am really disappointed with Zignaly’s profit sharing service and I want to alert all users about the serious problems that it has.
Right now I have 1000 USDT locked by Zignaly. The funds have been blocked for more than three months already and there is only a miserable chance that I will get control over my funds any time soon.
This post is a warning to all investors that are planning to use the profit-sharing feature of the Zignaly trading platform: avoid it at all costs. There is a high risk that your funds will be frozen by the website and there is nothing you will be able to do to return it back.
How did I invest 2700 USDT in profit sharing by Zignaly?
After testing the signal providers’ service I decided to continue experimenting with other earning methods offered by Zignaly. Their profit-sharing feature seemed to be a flagship service offered by this company, so I decided to try it out.
The idea of this is simple: you pick a trader from the list, you allocate your budget, you let the trader handle your money, and you pay a success fee for all profitable trade executions.
In order to launch this trading service, you have to open a Zignaly wallet and transfer your funds there. This wallet operates as a broker account on the Binance exchange. So, you basically create a Binance sub-account that is controlled by Zignaly.
After creating an exchange account, you will also have to fund it. The profit-sharing feature works only with these sub-accounts. You cannot use any of your existing exchange accounts to start using this service via API.
I have decided to deposit 2747 USDT for this profit-sharing experiment.
After that, I have picked 6 different traders and allocated my whole balance between them. Five traders received 500 USD from me and the last one got the remaining 247 USDT.
What happened after an entire month of trading?
I have checked the results after one month of testing the profit-sharing service offered by Zignaly. All six traders registered losses during this time. None of them had positive results. My decision was to stop this experiment and withdraw the money. This is when the whole situation started to get tricky.
This is what happens when you try to disconnect from the trader. A message appears informing you that you will no longer participate in the trades created by the trader, but the money will be locked until all the open positions get closed. The only one that is able to close a position is the trader.
After the disconnecting from all six traders, I have received back my funds from four of them. Two providers still had several positions opened, so I decided to wait. The disconnection process started on September 27th, 2021.
I have also decided to reach Zignaly’s support in Telegram to get a better picture of what to expect. The support agent explained to me that there are many other investors involved in those opened positions, this is why they cannot just close the positions when I want.
So the only option that I had was to wait for the trader to close the positions.
My follow-ups to Zignaly’s support team
One month later, the situation remained the same: two traders were still connected, 1000 USDT were locked and several positions were still opened. I decided to reach Zignaly’s support one more time:
Now, the support agent told me that there is a hard disconnection feature that was being developed. The good news, I might be able to get my funds back! Right now, I see how naive this assumption was.
Another month has passed, the hard disconnection feature is not there just yet.
Would it be added in a month? No! Right now the support agent is simply trying to get rid of me and suggests creating a ticket.
What is the current status?
My 1000 USDT is stuck with two profit-sharing providers.
These two guys have in total four open deals that, according to their strategy, will be closed as soon as they get a profit.
As you can see, one deal is registering a loss of -266%. When will it be closed? I guess no one knows.
There is a maximum drawback setting for each of these traders. One has set it at -80%.
Another trader can go down up to -60%.
Right now, their total drawback is -29% and -43%, respectively.
So there are two outcomes for me to get the funds back:
- These traders should close their positions with profit
- Their positions should be eliminated once the total drawback hits the targets.
How long will it take to reach any of these outcomes? Maybe months or maybe ages.
Is this a scam?
I guess I am not the first person facing the same issues, so Zignaly secured themselves by throwing off all the responsibilities. This is what you need to agree with before connecting to any of the profit sharing providers.
So basically, this situation cannot be considered a scam. It is rather a worthless functionality that Zignaly is offering to its users.
If you were thinking about launching the Zignaly profit-sharing feature, then think about it twice. I feel that in the current state of this project, the service is dangerous to be used and I would advise you to pick another automated trading solution.
I appreciate the detailed review. But I’m not going to judge the success of any bot, or copy trading, on the basis of one month. Or two, or three. My best 3Commas bot did over 30% a month for three months in a row (genius, right?), and then two little slides made a 25% drawdown — wiped one month of those profits. If that was the month someone evaluated me on, I’d look like an idiot.
I took a look back at September 2021. That period from 8/27-9/27 was down across the board, with a big slide the morning of 9/7. Over that month, BTC was down ~15%. ADA was down ~30%. Altcoins even more.
The fact that you only had losses of ~10% average seems like a net win to me. Better than the market did.
Grid bots might have done OK during that time, if the range was wide enough to cover that drop, but then, they wouldn’t have those triple digit annual returns either.
When in doubt, zoom out.
If I’m missing something, let me know.
The main goal of my experiments is to test out the bot features to make sure that everything works as it should. I do understand that the profit is dependent on multiple factors, including the current market state. My reports are just a representation of the experience that I managed to get, so this is up to you to decide if this information can be useful or not 😉