Risk Management

The most important reason for loss management is the asymmetry of profit and loss. MarginBot uses three main rules to apply money management strategy.

Position Sizing

2% rule ( a solid strategy to manage position size) is a common rule to apply on position sizing.

However cryptocurrency market is very volatile and 2% rule will also miss many opportunities of big wins, but also guarantee that you will not lose 50% of your money.

So MarginBot applies specific leverage rule based on technical analysis to ensure 20%+ profit monthly.

Leverage

Regardless of Position Sizing, MarginBot analyse leverage value based on Signal Clustering, Trend Strength, the Result of Volatility Measurement, Market Cycle and Ralph Vince’s Optima F.

We accumulate Position Size (means leverage) when unrealized profit exists. So in swing trading pyramid positioning is quite impressive to double/tripple profits.

Diversification

Except bitcoin, there are many other cryptocurrencies (altcoins) like ETH, LTC, BCH, EOS, DASH. HPTS diversify trading pairs with least 10+ pairs.

Ex: BTC/USD, BCH/USD, XRP/USD, ETH/USD, EOS/USD, IOT/USD, NEO/USD, DSH/USD, LTC/USD, BTG/USD, etc….

The advantage of diversification is to reduce the risk of trading. Let’s say we trade only on BCH/USD with total balance, then it means not only we would miss the opportunities to make profit on other pairs, but also we will lose much more when a trade signal of BCH/USD was false.