๐ Strategies
Zap Pilot uses a single, cohesive strategy that adapts to market conditions. We call this Regime-Based Rebalancing.
Instead of asking you to choose between "Conservative" or "Aggressive" vaults, we analyze the market's psychological stateโthe Fear & Greed Indexโand adjust your exposure dynamically.
5 Market Regimesโ
We categorize the market into 5 distinct regimes. Your portfolio's allocation depends entirely on which regime the market is currently in.
Momentum Matters: Bi-Directional Strategiesโ
Crucially, context matters. The best move depends on where you are, but also where you came from. We call this Bi-Directional Logic.
๐ด Extreme Fear (FGI < 25)โ
"Maximum Accumulation"
- Scenario: Market Crash.
- Action: Aggressively buy BTC/ETH with stablecoins.
- Allocation: 70% Crypto / 30% Stables
๐ Fear (FGI 25-45)โ
Here, our action depends on the trend:
- ๐ Falling into Fear (from Neutral):
- Strategy: Unwind LP for Spot.
- Why: Volatility is rising. We remove Liquidity Pool risk (Impermanent Loss) and shift into pure Spot BTC/ETH to catch the rebound.
- ๐ Recovering into Fear (from Extreme Fear):
- Strategy: Monitor Recovery.
- Why: We just bought the bottom in "Extreme Fear". Now we hold. We don't sell yet; we let the recovery ride.
๐ก Neutral (FGI 46-54)โ
"Holiday Mode"
- Action: Do nothing.
- Allocation: 50% Crypto / 50% Stables
- Why: The market is undecided. We sit on our hands to save fees.
๐ข Greed (FGI 55-75)โ
Again, direction is key:
- ๐ Rising into Greed (from Neutral):
- Strategy: Lock Gains into LP.
- Why: The bull run is heating up. We rotate some Spot Bitcoin into Liquidity Pools to earn fees from the trading frenzy while locking in some paper profits.
- ๐ Cooling into Greed (from Extreme Greed):
- Strategy: Take a Rest.
- Why: We already sold the top in "Extreme Greed". As the market dips back down, we don't buy back in immediately. We wait for a deeper correction.
๐ฉ Extreme Greed (FGI > 75)โ
"Maximum Defense"
- Scenario: Market Euphoria / Top Signals.
- Action: Sell heavily into Stablecoins.
- Allocation: 30% Crypto / 70% Stables
โ๏ธ How Rebalancing Worksโ
- Regime Change: When the Fear & Greed Index moves from one regime to another (e.g., Fear โ Neutral), a rebalancing event is triggered.
- Notification: You receive a notification (or a calendar invite) suggesting the new allocation.
- Gradual Execution:
- To prevent selling too early or buying too late, we don't execute all at once.
- We use a damped execution model, spreading trades over 5-10 days.
- This "Smooth Rebalance" ensures you get a better average price and avoid whip-saws.
๐ค Custody & Safetyโ
Critically, Zap Pilot never holds your funds.
- All rebalancing transactions are proposed by us but signed by you.
- Funds move directly from your wallet to the DEX/Protocol and back.
- We use open-source smart contracts and standard protocols (Uniswap, Aave, etc.).