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.