Here are some answers to questions you may have about the Piggy Bank. This block which is used to set aside a portion of the winnings, sometimes misunderstood by strategy creators who are just starting out or users. Other questions will be added in the future if needed.
First, we would like to clarify if you are wondering: "Do we pay fees on the capital set aside by the PIGGY?"
The amount saved by the PIGGY is an integral part of the strategy, so it is added to the current capital for fee calculations.
How to use the Piggy block?
This block will set aside a part of your earnings (which you can define) outside the wallet of your strategy. In other words, the funds saved by the PIGGY block will no longer be usable by the strategy.
This block is used to secure your profits. With this block you can choose two ways of saving funds
- Base currency profits
You will set aside a part of the funds with which you started your strategy (for example, the base currency profit on a KRL/BTC pair you will set aside BTC).
- Traded currency profit
You will set aside part of the funds that your strategy will buy (for example, the traded currency profit on a KRL/BTC pair you will set aside KRL).
Is it necessary to stop the strategy to get the piggy bank back or is it safe to use it?
Yes, because the functionality of the PIGGY block is to secure part of the gains, so there is no possibility of recovering your saved funds as long as the strategy is running. You can always withdraw the funds on the exchange side but this will distort the performance calculations of the strategy. Generally speaking it is advisable to let the strategy run without intervening on the exchange and withdraw your gains when it stops.
Why is it that when you put a PIGGY in the traded currency in a strategy, it doesn't always save part of what is being asked. We make a profit but strat says the opposite ?
To save the chosen currency, you need two conditions, a winning trade and a capital higher than the one you started with. So if the conditions are not met, the piggy will not have accumulated on the last trade.
Can the Piggy block significantly reduce the maximum drawdown of a strategy?
It is possible to reduce the Maximum Drawdown with a PIGGY, it will be necessary to adjust it so that it puts enough money aside without altering the performance too much, if you allocate too much money to the PIGGY the strategy risks having a lower profit (principle of compound interest) because it will not be able to reinvest a large amount of money at each purchase.
It is therefore necessary to balance the percentage that you will allocate to the PIGGY to avoid penalizing the performance in favor of a lower MDD.
an "ideal" example on a bullish trend to better understand
If more than 50% of the capital is the result of a progressive accumulation of the base currency over a large period of time, then the effect of a dump on the traded currency (e.g. BTC, for BTC/USDT) will be mitigated because the majority of the capital is already "saved" in the piggy so a better performance in live and backtest if the market is dumping. The buy and hold will therefore be beaten by the performance of the piggy strategy in this case.
As a user of MarketPlace strategies, are we able to choose which token/coin of a pair will be in the piggy block in the future?
Only the publishers decide if the accumulation in the piggy block is in base currency (accumulated when selling, e.g. in USDT, for BTC/USDT) and/or traded currency (accumulated when buying, e.g. in BTC, for BTC/USDT). Indeed, for an efficient accumulation, the arrangement of the indicators and their data in the blocks are essential and are the responsibility of the publisher.
Example to understand Backtest log(or log from live trading) with piggy bank block:
During your live trading
Your performance is calculated in the live with wallet status added to the piggy bank and compared to the initial wallet.
Happy Trading,
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