Now we’re in a time where at least my bots do’ing really well, but that couldn’t last forever.
Finding the right time to de-risk/switching over to shorting bots isn’t so easy as it seems, I’m still on bailing out some of my red bag spot bots.
Sure, one of my main errors was to “overleverage” my balances, but overexcitement is one of traders greatest enemies.
So the question to the veterans, what are your strategies/mindsets to not getting a victim of temporary success?
For me the biggest game changer is to be prepared for a correction of 60% at all times. I usually cover deviations of 50-60%, and I have money on the sidelines on a yield account in case I still need to bail any deal.
This approach may be too conservative for most, but I think being prepared for a correction and leaving money aside is really important, the actual % depends on your risk tolerance.
Check the backtests. Urma like all DCA bots get stuck in slow sideways downtrends. They work best with large drops and bounces.
The trick is turning the bot off before bull run is over or wait out for alt recoveries. Which can be a LONG time. Also take profits rather than compound
Thank you all for your thoughts!
I think thats a really important topic for many, and I doubt that everybody is aware of that.
Turning the bots off at the right time is IMHO not an easy trick, simply because markets wouldn’t work otherwise.
I’m just throwing ideas around, would it be helpful to have some sort of indicator that shows the ratio of failing deals platform wide?