thetradingparrot
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Small optional adjustment: max active trades count
🕑 Added 2021-04-16 11:12:32 +0000 UTCI'd like to change the "max active safety trades count parameter" in most of the bots.
This is an optional adjustment which has some pros and cons.
I'm releasing soon a video explaining more in detail why I'm more inclined to opt in for increasing this value.
For now it's all summarised below.
Pros
1) Reserve will reflect better the actual bot funds usage at all times
2) It helps preventing not enough funds - early feedback if not enough funds
3) Catching big fat fingers abrupt moves in price. If price drops too quick, having the order already placed in the book on the exchange guarantees catching sudden moves in our favour compared to 3C having to place the orders as the price moves which is a slow alternative.
Cons
1) By placing all SOs in the book at the time you create a deal you are technically exposing your plan very early. If you are an actual whale others might use this information in their own advantage.
2) Locking down funds too early for some strategies. Some strategies have close to zero likelihood to require any of their deals to ever use the lowest SO. In these scenarios locking down those lower SOs upfront in the book might not be the best use of your funds. We need to consider this and make a decision best on this trade-off.
3) A bit more cumbersome to undo lower SOs when needed. Ok, maybe not a valid cons, but in practice, when you go to a deal that has multiple SOs and they are not placed in the book yet, editing the deal and lowering the number of SOs before they have been placed (& therefore not filled yet) is very easy as it doesn't require 3C to tell the exchange anything as in practice 3C is still managing those SOs. If they are all already placed in the exchange then canceling/removing SOs from the book does require 3C to do this. I haven't tried this scenario yet, but I presume you can still cancel them as long as those haven't been filled in the book to from the 3C deals screen.
Example
You can see in the screenshot below an example where max active trades count was increased to match max safety trades count.
By doing this all SO go to the book in the exchange as soon as the deal is placed by the DCA bot.
This will also lock down all the funds of the market currency (quote currency) for all SOs at the time the deal is created.
Changes
This are the changes I'm making to the "max active safety trades count" parameter of each of the bots. If there's a bot I'm not mentioning it's because the parameter has already been maxed out, so no need to change it.
- Lambo - increased from 1 to 3
- Venka - increased from 1 to 3
- Aleksandro - increased from 1 to 3
- Amika - increased from 1 to 3
- Ludoviko - increased from 1 to 5
- Mikelo - increased from 2 to 3
- Safira - increased from 1 to 6
- Tondra - increased from 1 to 5
- Parrot Poison - increased from 1 to 3
- Johano - increased from 1 to 3
- Glorinda - increased from 1 to 3
- Martyn - increased from 1 to 6
- Petro - increased from 1 to 2
- Petro (the conservative version) - increased from 1 to 4 (I don't think the 7 SOs in the book, you can still go with 7 if you want the whole deal to appear in reserve to help making fund management easier)
- Mirinda - increased from 1 to 3
There's an interesting article that can also help understand the logic behind and presents a nice real life example:
https://onepercent.blog/2020/06/10/setting-max-active-safety-trades-important/
Thanks Trader Joe for bringing this up!
Comments
Bakker is already at 3
How about the Bakker setup? Is it advisable to do the same on them?
Thanks for the session. Can we ask SharronMichelle about a crypto called Verasity VRA?
