3️⃣ Setups

Setups are trading ideas, such as “Long ETH, TP $3,183 / SL $3,060, duration 6 hours”. Anyone can post a setup, though this feature is aimed primarily at pro traders and influencers, who earn a percentage of all the users who joined their setups.

A setup’s creator needs to select:

1. Asset

2. Long or Short position

3. Duration

4. Take Profit and Stop Loss values.

Once a setup is posted, other users can either vote for its success by clicking on the TP icon (i.e. the user believes that the price will reach the Take Profit level), or for its failure by clicking on SL. One can choose the amount to bid, and new forecasts can be submitted only as long as there is enough time remaining until the setup expires (e.g. a user cannot join a pool 15 minutes before the end).

As a result, each setup accumulates bids in two pools: TP and SL (or those who agree with the setup author and those who don’t). The amounts in the pools determine the earnings multiplier. The multiplier constantly changes. The author of the setup receives 10% of both pools, as long as the trade hits either TP or SL; another 10% goes to the platform.

If the trade doesn’t reach either the TP or SL level within the allotted time, all the funds from both pools are returned to the players.

📌Example:

A trader posts the following idea: Long ETH at $3,000, TP $3,100, SL $2,950, duration 24 hours. There are $5000 worth of bids in the TP pool and $10000 in the SL pool (most users think the trader is wrong), so the current multiplier is 2. Bob, however, is certain that the price will go up, so he places $50 in the TP pool. With the 2x multiplier, he stands to win almost $100 (minus the 5% deducted in favor of the author of the setup and the 5% platform fee).

The price does start to move up decisively, and more people join the TP side, while few join the SL side. At the end of the round, there is $15,000 in the TP pool and $12,000 in the SL pool, so the final multiplier is 0.8. Let’s calculate Bob’s winnings:

1. Platform fee = 5% of the losing pool and 5% of the winning pool = 0.05*$27,000=$1350

2. Setup author reward = 5% of the losing pool and 5% of the winning pool = 0.05*$27,000=$1350

3. To be distributed to the winners: $10,800

4. Each $1 of the winning pool earns $10,800/$15,000=$0.72

5. Bob’s winnings: $50*0.784=$36

6. Bob gets back $47.5 out of his $50, because $2.5 (5%) goes to the author of the setup. In total Bob recieves $47.5+$36=$83,5

7. This isn’t the $100 he had hoped for, but it’s still a 77% profit rate.

The setups posted by users with a high win rate are displayed first in the app, followed by those that will close soon (but can still be joined) and those with the highest multiplier.

Which idea one chooses depends on one’s risk appetite and strategy. Those by influencers with high win rates may have a higher chance of winning on the TP side, but as most users will join that side, the multiplier will be low. Joining on the SL side is risky (as it means bidding on a trader being wrong), but the reward is high.

Joining setups with the highest multiplier means going against the majority, but the user can check the author’s previous setups and winrate to assess their ability to analyze the market. A user with good crypto trading experience can be wrong but at the same time attract a lot of supporters. For example, many believed that the BTC price would quickly rise to $52,000 after the ETF approval as institutions would need to buy a lot of Bitcoin; instead, the price dropped below $43,000.

December 2024 update: results are now displayed in a much more convenient table format.