Frequently Asked
QUESTIONS
Introduction to Trading Algorithms (Bots)
Frequently asked questions
A cryptocurrency trading bot is a computer program that automatically buys and sells various cryptocurrencies, based on predefined conditions, at the right time with the goal of generating a profit. Trading bots can focus on a single specific asset, a specific monetary goal, risk mitigation, maximizing results over a specific set of time, and more. EFS strives to leverage the current market cycles to accumulate the most assets that will then have exponential growth over time.
Actually, trading bots are ubiquitous among large and small fund management companies the world over, each with a unique view of the market, appetite for risk, and financial end goal. These proprietary and customized tools offer tremendous scale in stock trading. However, this scale is best exploited in the 24hr trade cycles found only in the crypto space.
Trading bots are complex to build and/or manage for most people…requiring knowledge of trading, risk management, and also the computer/programming aspects. Oftentimes, when bots are purchased from a third party, you are getting a bot for that specific market condition only, there’s no service provided to maintain the bot’s performance over time resulting in undesired results.
There is abundant space for all in the crypto markets due to each participant having different end goals, time horizons, capital to invest, etc. And by nature of more people entering the markets, the more amount of capital that is liquid to be traded on a daily basis, increasing the opportunity for those who want to trade manually or with a bot. Needless to say, this is of great value to EFS Crypto bot clients…it just gets better with time.
Understanding Coinbase Pro
Coinbase serves multiple roles in one platform. It is both a digital wallet for storing crypto as well as an exchange for trading it. Coinbase Pro further serves to allow the deployment and remote maintenance of EFS Crypto bots. Coinbase Pro has been chosen due to the trading pairs available to trade as well as the trading volume levels that it sustains on a 24 hour basis.
Coinbase and Coinbase Pro are leading cryptocurrency exchange platforms owned by the same company. Coinbase is like a brokerage with a virtual wallet, built to make it easy to onboard someone who wants to buy cryptocurrencies. Whereas Coinbase Pro works as more of an exchange where people professionally trade, buy, and sell from each other. Coinbase Pro, being more of a professional trading platform also has lower fees than the easy to use client interface of “Coinbase”.
Understanding Tax Liabilities
Getting Started With EFS Crypto
EFS offers a full 'white glove' service, meaning that we are here to help you on every step of the journey. From strategizing, set up, deployment, to overall understanding of the proper approach for the market conditions you are in. With that being said, EFS offers done for you services, so whether you are brand new to crypto or already an expert you are leveraging our knowledge and experience to help you reduce your risk and build your wealth.
You will always be able to see your account and performance 24/7. Regarding access to your capital- No. EFS is deploying our technology onto your account and keeping you in control of your money. EFS uses an API (information channel) to communicate between your account and the internal bot. This gives EFS the ability to change the main bot and then push out updates to all of our clients. The API does come with the ability to view information such as detailed performance metrics and balance growth.
Understanding the Winning Strategy With EFS Crypto Bots
Experience, consistent performance, and maintenance! Bots are designed to perform in a certain market environment… as long as that market doesn’t shift or change, ever, it will always succeed. However, sadly markets don’t always just go one direction. So someone has to change the bot to match the change in the market. Built right into the model of our business is bot maintenance. The success of any trading bot lies in its active maintenance, someone has to update the bot. This is the downfall of DIY bots for consumers, while it’s the pride of EFS Crypto bots. We actively maintain the bots so you can passively reap the rewards. With a bot that can be consistent, you then have a tool to scale your accounts.
Our trading bots will seek out and buy almost every dip along the way, looking to close with every brief correction to the upside, as the coin value continues to plummet. Avoiding risk is tantamount to winning when crypto drops. Markets crave equilibrium…so the faster the price drops the higher the probability of a reversal in price. EFS Bots are currently programed to handle a sudden 60% drop in price.
There is a very low chance of the bot taking a loss on a trade. The primary way a client would take a loss on a trade is if they manually went into their account and decided to sell at a loss. This is a common misunderstanding of how trading works. The only reason that you need to take a loss on a trade is because of the time horizon of your goal…for example day traders need to get in and out of trades every day…and if that means they need to take a small loss to recapitalize themselves for the next trade moments later…they will. Whereas with our long term risk management strategy we would rather wait for several days to exit a trade in profit, rather than exit same day with a small loss just to turn around and accomplish the same goal.
While the returns might seem high, EFS bots are not, nor will they ever be, the highest yielding bots built. The approach of EFS bots is to accumulate and maximize the results over a 4-6 time period. EFS will not change their risk management approach and increase the risk of the account in order to only slightly better returns. EFS cares more about capital preservation than a few extra percentage points each year. Remember, if you loss 20% of your account, you now need 25% gain just to get back to even.
Most likely, but it depends. Success in trading is due to capturing volatility in the markets, so whether the trend is going up or down isn’t nearly as important as HOW it is going up or down. When the markets are going up, the assets you accumulate are also going up, when the markets are going down though, you are accumulating more of the assets that will help you perform the best in an up trend. There have been remarkable “down” market months where our bots have outperformed even the best “up” market months. This is because of the built-in risk management factors that can have tremendous impact on occasion in a down cycle.
The cryptocurrencies traded by EFS bots are based on selections made by the EFS Crypto owners for their, fundamentals, the liquidity and historical trading volume of the asset, as well as the volatility levels and risk profile. There will be between 6 to 18 at any given time, and among them will be Bitcoin and Ethereum most all the time.
In their appropriate cycles, this is a very good idea, and EFS Crypto will do this for you. EFS Crypto has a Bitcoin Accumulator that can be deployed for you. However, at this time, an Ethereum Accumulator is not available due to a low number of ETH trading pairs, but as the markets develop over the next several years, EFS will be looking to launch and deploy an Ethereum Accumulator.
If your bot that we’ve deployed for you is underperforming that means that the company’s bot is as well, since they’re linked together. You can always contact support to verify that your bot is working appropriately. Sometimes, its something simple like an unreported substantial balance change due to a client's withdrawal or deposit. Sometimes in down markets your bots are accumulating assets because they are at a value level, but its also possible that those same assets may not be sold until the next month, so what looks like an underperformance could also be the bot preparing for an overperformance in the near future. That's why we focus on the annual performance and not the monthly.
Short answer is, YES! Technically they will be difference by small amounts simply because if the bot wants to buy Bitcoin at $30,000 there are only so many sellers at that time and exact price…meaning that once those sellers have sold, someone will buy from the next available seller at $29,999.99 and some may have to buy at $29,999.98. But all bots look and perform the same from the risk management perspective and trading perimeters. When the bot settings need to be updated due to market conditions, one change at the top and all client bots are affected to match instantly.
It's your money, you stay in control! You certainly can, any time you’d like. The only request is that you email our support team to say “I took out $X” or “I deposited $X” so that we can make sure your bot is calibrated to the right amount. We don’t want a bot to be too aggressive because you took out half the capital and we don’t want a bot to be too conservative because you added another 40% to your account. This simple request of communication helps EFS fulfill their commitment.
Whenever you’d like. It is your capital. It is your Coinbase account. You are in complete control. With that said, since the bot is already reducing your risk over time (the primary reason you typically want to take profits) to maximize the results of your bots you want to leave as much in during the market cycle to take full advantage of compounding growth and the increasing value of the crypto our bots are accumulating for you. Withdrawing funds “out of cycle” could hinder (cost) you in rapid growth in the last year of the cycle.
Absolutely! While you will want to start with a substantial amount at first, adding more capital to increase your account monthly or quarterly is an excellent idea. The only request is that you email our support team to say “I deposited $X more” so that we can make sure your bot is calibrated to the right amount. We don’t want a bot to be too conservative because you added another X% to your account. This simple request of communication helps EFS fulfill their commitment.
EFS Crypto Licensing and Monthly Maintenance
Maintaining trading bots, adjusting them with market trends and large balance increases/decreases is tantamount to success. The reason why trading bots typically do not work for consumers is because bots only do what they are told…so when the markets change, they have to be told new information for that new circumstance in order to continue to thrive. Think of the maintenance fee as hiring a 24/7/365 day trader that lives in your pocket.
Market trend changes are what most affect the need to make tweaks or adjustments. This could occur as often as daily, weekly, or as seldom as quarterly. EFS is also constantly back testing strategy, new coins/assets to invest in or use as a hedge, as those results are tested and confirmed they are also rolled out to all clients. Monitoring and assessing for adjustments happens daily as the owners are using this technology for their personal bots.
Yes. While you cannot change or affect your bots from your side, you can request to have them turned off at any time by emailing support and requesting your bots be turned off that day. Turning your bots off will just stop the bots from entering into any new trades from that time forward. Any current positions you have entered will stay open until they reach a target profit and close automatically. I don’t have an example on why someone would want to do this, but it can be done. Turning your bot off does not keep you from having maintenance fees due. If you would like to cancel service for good, simply write in and it will take effect within 48 hours.
READY TO SCHEDULE YOUR 1-ON-1?
Discuss your goals with the team and see if this is the right fit for you.
