Trust management or trusted strategy type

Warning! Always check the information about the trader and do not enable the withdrawal permission. Trust management should be chosen for copy trading if you monitor traders trading performance for a long time and trust their decisions.

First of all, let’s understand what trust management is, what its advantages are and how it works on Coinmatics platform.

1. Definition of trust management in copy trading
2. The pros and cons
3. How it works on Coinmatics
4. The special functionality the platform offers
5. The request form to start a trust management account

Definition

Trust management on Coinmatics represents a copy trading process, where people provide the information about their API keys to traders and ask them to manage copy trading on their behalf. Everything (except creating the API key) is managed and controlled by the trader.

So, if you are a trader with an audience that wants you to manage the copy trading and give you access to their API keys or their funds, Coinmatics can be a solution for copy trading automation and analytics to show to the audience/community.

The pros and cons

Let us start with the pros of trust management:

• Clients don’t have to register their own Coinmatics accounts. This prevents them from subscribing to another trading strategy, as they won’t see other traders on the platform.
• Everything is under your control. You will be able to see that copy trading is set up correctly and that all the positions are copied. It reduces a number of questions for you and your team.
• Comparison of open positions — you see the list of the open positions on all the exchange accounts and see if there are any differences (in leverage, entry ) with the Coinmatics functionality
• If your audience are crypto amateurs, this is a great opportunity to familiarize them with the basic terms and introduce them to the crypto world.

What are the cons of trust management:

• If you have a lot of followers, you might still spend some time solving the problems they would have.
• Establish and supervise the observance of pay time
• The followers do not have access to analytics (profit results, the balance change, copied signals, etc).

As an alternative solution, you can ask for white label solution where people can use Coinmatics without reference to it.

How it works on Coimnatics

Photo by Austin Distel on Unsplash

Please note that creating a strategy on Coinmatics doesn’t affect your strategy (automatic or manual) in exchange. Coinmatics only receives the information about your trades and then places the same trades on the subscriber’s account.

Strategy is the element that represents your trading performance (manual or auto) and contains all the details (from you and the one calculated by the platform).

Trading (manual or auto) occurs on one of the integrated exchanges (OKX, Binance, Bybit). So the funds for trading and copy trading should be on the exchange account.

By adding an API key (with the required permissions/restrictions) to Coinmatics and publishing a strategy, traders allow the platform to share their signals with the followers. The strategy for trust management will be hidden and available to a trader only.

All the information about the trades (on the Spot or Futures market) is transferred to Coinmatics and then to a subscriber’s account via their API key.

First steps are similar to creating the public strategy on Coinmatics.

1. You start with the creation of the Coinmatics account;
2. Link your exchange account via API key;
3. Place your strategy (or fill in the form with the strategy information) and choose the API key.

The first 3 steps are described in the HelpCenter article here: https://support.coinmatics.com/en/articles/7010815-how-to-start-a-trader-account-on-coinmatics.

As soon as your strategy is approved and you are granted the Premium Ref plan (the access to all the Coinmatics features), you can connect the followers API keys.

To start copy trading, please

1) open the strategy page — the link is on the “My strategies” page

2) click on “Subscribe” under Copy Trading

3) select the API key

4) repeat this several times until all the API keys are linked to your strategy.

The process is similar to the subscription to the public strategy. Here is the video for you to check:

Voila! Now you can manage the copy trading of your followers and track the success rate and profit results.

The special functionality the platform offers

• Proportional copying — when the trader opens a trade for 10% of the balance — Coinmatics will take 10% of follower’s balance to place the same trade.
• The speed of copying within less than 2 seconds
• Comparison of open positions (see above or in the HelpCenter article)
• If you trade on Spot, you’ll get the functionality to mimic the structure (coin distribution) of a strategy account balance (alignment feature)
• Also, for Spot strategies you can set up the Stop Loss — If your lifetime profit (TWR) goes below the specified stop loss value, the system will automatically stop the copy trading subscription and convert all assets on the exchange to the selected coin.
• You will get Premium Support and your requests will be considered first.

The request form to start a trust management account

If you are interested or would like to test the trust management, you can fill in the form on the Coinmatics website: https://coinmatics.com/for-traders/ (Trusted)