Additional Leverage Bot Utilities
(Coming In Future Updates)
Last updated
(Coming In Future Updates)
Last updated
1. Add Margin for Enhanced Risk Management:
Our "add margin" feature allows users to have greater control over their positions with additional funds, reducing the risk of liquidation. However, it's crucial to be aware that if these funds are added too late and a liquidation event is imminent, the bot may not have time to process the margin increase. Therefore, users are encouraged to add margin proactively, especially if their position is approaching the liquidation threshold, to optimize their chances of avoiding liquidation. The add margin formula is as follows:
But for those who want a simplified explanation as to what the above formula truly means, we have you covered. For 100% transparency and clarity please refer to the explanation below. Initial Setup: You started with $100 of your own money. You borrowed $400, making your total investment $500. The price of the asset you are buying is $1 each. With a 5x leverage, your liquidation price was initially $0.86. This means if the price of the asset drops to $0.86, your position would be liquidated. (70% Leverage buffern divided by leverage amount, 5x, equals 14%, $1.00 - 14% = 0.86 cents.)
Adding More Margin:
You decided to add another $100 to make your position safer.
Calculate the New Total Investment:
Now, you have a total of $200 of your own money ($100 initial + $100 added).
Your total position size is still $500 (the $400 you borrowed plus your $100).
Determine the New Effective Leverage:
Before, your leverage was 5x (because you had $100 and borrowed $400).
After adding $100, you effectively have $200 of your own money in the position.
The new leverage becomes $500 (total position size) divided by $200 (your own money), which simplifies to 2.5x leverage.
Calculate the Buffer Percentage:
The buffer is always 70% of the effective leverage.
With the new leverage being 2.5x, the buffer percentage is calculated by dividing 70% by 2.5, which gives you 28%.
Calculate the New Liquidation Price:
Your new liquidation price is determined by reducing the original asset price ($1) by the buffer percentage.
So, you take 100% minus 28%, which equals 72%.
Multiply the original price ($1) by 72%, resulting in a new liquidation price of $0.72.
2. Partial Close for Position Management (coming soon):
The "partial close" option introduces a dynamic approach to position management. Users can now choose to close 50% of their position at any given time they choose, at any given price as long as it is above liquidation. This feature provides users with the flexibility to secure profits or minimize losses while still maintaining a position in the market.
3. Enhanced Stop Loss and Take Profit Management:
We've introduced the ability to add, edit, or remove stop-loss and take-profit orders even while a trade is actively open. This enhanced flexibility allows users to fine-tune their risk management and profit-taking strategies in response to changing market conditions, maximizing their control over their trading positions.
4. Leverage Limit Orders for Strategic Entry (coming soon):
With leverage limit orders, users can predefine their leverage parameters and specify a desired entry price for an asset. When the asset's market price aligns with the user-set limit order price, the bot will automatically execute the trade. This feature streamlines the process of entering positions, making it easier to enter at profitable market opportunities.
5. Auto-Rebuy (coming soon):
Users will be able to select an auto-rebuy feature upon opening their position. This option will give the user the ability to set new trade parameters, or keep the initial trade parameters ready to trigger in the event of liquidation on the first position. Often times positions get liquidated just before positive price action occurs. Providing an auto-rebuy in the event of liquidation for users who are confident is an assets chances of appreciating allows for the user to automate a rebuy within seconds of liquidation.
