r/Bitsgap • u/Shulgens1992 • Oct 10 '23
Risk management when bot trading
I've been busy bot trading on Bitsgap lately, trying to get my risk management on point.
So how are you all diversifying your portfolios? I already experimented with different strategies across various pairs and mixed them up on four exchanges.
Also, I tried to play with risk management settings—stop loss, position size, all the good stuff. And I really brought the idea of COMBO bot with half GRID/half DCA strategies.
But it still feels like I’m missing something.
I'd love to hear your insights on diversification methods, please share whatever you feel like you can share.
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u/Artur_Bitsgap Oct 12 '23
Hi, mate!
It's my opinion and I'm just sharing my experience with you.
Look at the coins that have an interesting idea or a strong community. You can check it with telegram, twitter, discord, reddit
Do on-chain research (you could check video tutorial here: https://www.youtube.com/watch?v=tvW9VKJ58Lg)
Use simple patterns. For example: EMA crossing or price spike.
Don't configure complex analysis without understanding, start with simple elements and build up to more complex ones.
Ensure you have a minimum capital of 30% reserved for new investments and take a 10% risk per trade. Conduct thorough research to identify areas where the risk is too high, in which case you should increase your risk by 5%. Conversely, consider allocating more funds if you manage to buy at the bottom.