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What are the risks in trading with a bot?

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1. Trade risks in the spot market

A negative result of the work of spot bots can be attributed to the situation when the price of the traded cryptocurrency changed very much and for a long time. As a result, all insurance orders were executed, and we got into the situation of an "investor" waiting for the price to return to a level where the bot could complete the cycle of working with a profit. It turns out that we reduced the value of the original deposit allocated to the bot by buying an asset too expensive in a prolonged and severe price drop (the LONG algorithm), or by selling the asset (the initial deposit) too cheaply in a prolonged and high price increase (the SHORT algorithm) and now we have to wait for the price to return.

The "investor" situation can result in too aggressive bot settings as well as wrong choice of traded pair.

For detailed recommendations to reduce trade risks as well as the trade strategy that best suits RevenueBot, please read here.

What do you do when you’re in the "investor" situation?

This situation is not to be feared:

  • Usually the price is returned if a good cryptocurrency is chosen for trading. Price fluctuation +-30% is essentially the norm, so do not use the percentage of overlap of price change (Overlap of price change %) is less than 30-40%.
  • You can calculate the price of the final order cycle in such a way as to exit from the trade with 0% profit or with a small minus. We have a convenient calculator of profit for such cases (a control button in the menu of statistics and control bot "Move take-profit order").
  • You can use the resulting cryptocurrency to start trading in the other direction (by reversing the bot’s algorithm), so that the deposit does not stall until the price returns to exit the original trade with a profit.

2. Risks when trading on the futures market with leverage.

The main risk when trading futures with leverage is the elimination of the entire margin balance in the futures wallet in your exchange account (receiving a margin call).

You need to use money management and calculate the bot settings so that this does not happen.

Read more about how to reduce risks when trading futures with leverage here.



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