In this Video TrashDog talks about Double Up, a Gunbot Feature that gives You the ability to Take Advantage of using Your Base Coin Balance to Dollar Cost Average, lowering Your Average Bought Price and giving you the possibility of exit sooner at profit once the value of the Quote coin recoups. Pretty neat right? For Spot that is, but what about for Futures Trading?
KEVIN BEARDSLEY - (KRAKEN FUTURES)
- What is doubled up DCA strategy?
TRASHDOG - (GUNBOT TRADER)
- Double up is actually probably one
of the settings, one of the
strategies inside Gunbot itself.
DCA is dollar cost averaging, so in the
event that you turn around and you open
up in position, you say you turn around
and buy ten contracts and the price drops.
You've been all of a sudden you go okay
so i'm going to turn around and buy 20
contract and buy another ten so now you
have 20 contracts and that changes you
average bought price for you know, how
many contracts you have but in the price
drops or more you go 20 to 40 40 to 80
and then 80 to 160, the problem is on
spot if you run out of funds and you
can't do your strategy anymore and you
can't sell for a profit you're left
holding a really heavy bag, on margin
sorry, on futures if you try that and you
don't understand your liquidation prices
and your market prices and stuff like
that, you literally can throw away you
know instead of just throwing away a ten
dollar trade you can end up throwing
away half your account. Because if
the price keeps falling whatever you put
in on futures you will you lose. So yeah
when it comes to trading with
stop limits you can run similar
strategies, if you're running with DCA
you know a dollar cost averaging a type
strategy, you've got to be very careful
you can't do the same thing on both.