Multipurpose the same account equity

General
,
1

Hi Gainium guys.

I am planning to do something a bit risky and I would like your thoughts - maybe someone has already done something similar. Thinking along the lines of the Hedge Bot, I am considering putting 4 bots to work simultaneously on one set of capital. Each bot will do something different so they should in theory not trigger liquidations. I’m just not sure how Gainium will cope if there are already other trades open on the same asset. The trades could either be in the same or opposite direction (as is the case with the Hedge Bots). Let me explain.

There will be 4 bots active on the same pot of capital.

  1. Buy Combo Bot (almost always on to capitalise on range bound and upward markets)
  2. Sell Combo Bot (almost always on, especially in sideways and downward markets)
  3. Buy DCA Bot (only on in upward trending markets)
  4. Sell DCA Bot (only on in downward trending markets)

I think 1 + 2 can be accommodated with the new Hedge Bot. 3 + 4 will probably be stan alone DCA bots. Important to note that 1 + 2 will run concurrently most of the time, only switching off in downward and upward trends, respectively. 3 will only be active in upward trends and 4 only in downward trending markets. So there is quite a bit of overlapping with at least two of the 4 bots running concurrently.

My question is how will Gainium deal with this if all 4 bots are running off the same capital and all 4 are set to be compounding. Therefore, at the start of each new deal, the first trade will adapt to the new account balance and it will be slightly larger or smaller depending on the profit or loss of that bot’s previous trade as well the profit or loss of any of the other three bots that may have closed in the mean time. Are my assumptions correct that Gainium will deal with each trade “in a silo” for the duration of that trade, i.e. each safety order will be based on the account size when the bot started. So each safety/or grid order will be a percentage of the opening order - rather than a percentage of the account balance at the time when it is necessary to make further safety and/or grid orders. Also, when the bot closes, will it only deal with the positions and orders that are relevant to it - leaving the orders and positions that could still be open but attributed to the other bots that are also utilising the same capital pot unaffected?

Your thoughts, Many thanks.

2

I would guess that order sizes are fixed once a trade is started, regardless of how the portfolio performs. If trades haven’t taken each other’s assets, they should only affect their own assets at close.

If you use limit orders and can also ensure that all orders are placed in advance, your bots can run without interfering with each other. Otherwise, if you run them in the same account, they’re always likely to take assets from each other if they are running on the same pair.

3

Great. This is how I thought it would work. So I would run each bot at 50% what I’d normally have them in dedicated accounts. Each bot is pretty conservative anyway, and they will be active during different market phases so I don’t think they will lead to liquidations for instance. But 4x 50% = 200% efficiency without me needing to move money between them during different market phases.

Thanks.

4

If I were you I would try this on paper first. It’s a complex setup + leverage, definitely risky.

To safely compound these bots, you must do it manually, perhaps with Global variables: https://gainium.io/help/global-variables so all bots are updated at once. The % option won’t use all your capital when using multiple bots (you could configure each to use 25% of available capital, but once the first trade is opened the next one will use 25% of the remainder, which summing all bots will be less than 100% of the original amount).

But compounding is not that difficult. What’s difficult is managing those bots. What are the criteria for activating each? And how are you going to close the bots? Are you going to close the deals or leave them open, hoping for a recovery?

We treat each deal as a silo and calculate pnl independently, but the exchange does not, they consider only one position per coin. You cannot get the second BTC deal liquidated. When liquidation hits all deals on that coin are liquidated.