Is this also your strategy to avoid hitting your stop loss early?

[Chipard]

I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?

[JohnBitCo]

I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?

Taking low leverage is recommended because if you take big leverage, the exchanges usually liquidate you. You might have seen many wicks on the trading chart which are infact the liquidation wicks.
Stoploss placement and low leverage are two seperate things. First you need take low leverage and then place a stoploss, so that if the market moves in oppsoite direction of your trade, you are out of the trade with minimum loss and do not liquidate the account.

[viananda2525]

I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?

Taking low leverage is recommended because if you take big leverage, the exchanges usually liquidate you. You might have seen many wicks on the trading chart which are infact the liquidation wicks.
Stoploss placement and low leverage are two seperate things. First you need take low leverage and then place a stoploss, so that if the market moves in oppsoite direction of your trade, you are out of the trade with minimum loss and do not liquidate the account.

high leverage and high margin be main things our account will easy to liquidate, there is no good money management there and only depend on one shoot that must profit, meanwhile market could very volatile only in seconds. putting stop loss in high leverage and high margin will not solve liquidity problem to our account, the correct one as you said use  MM strictly and low leverage.

[crwth]

Yes of course. I think you have the right idea to have a lower setting of leverage and have it far away from your liquidation limit. Because if you would be able to do that then you should be able to handle a couple more trades when you are against the thread. You can average your entry price as long as your account can handle it in the right direction. DCA-ing it is going to be okay and that's one of my strategies as well that I use automatically.

It's such a pain to do it manually that's why I use a trading bot like Gunbot. It just makes my life easier and it continues to trade for me 24/7.

[Wiwo]

I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?

First your title of the topic is misleading as I was looking to see where you will mention stopping lose in your message but it was never mentioned and yet stop-loss appears in your title which is what got my attention in the first place, low leverage is recommended for slow and long liquidation time and that give traders a lot of opportunities to cash in their gains before the liquidation amount is reached, but that can not be said when you set high liquidation the maximum I can go is 2x if not I remain in my 1x and this always gives me peace of mind during trading.

[Eternad]

Yes of course. I think you have the right idea to have a lower setting of leverage and have it far away from your liquidation limit. Because if you would be able to do that then you should be able to handle a couple more trades when you are against the thread. You can average your entry price as long as your account can handle it in the right direction. DCA-ing it is going to be okay and that's one of my strategies as well that I use automatically.

It's such a pain to do it manually that's why I use a trading bot like Gunbot. It just makes my life easier and it continues to trade for me 24/7.

Is Gunbot using API to trade? What’s the difference between Binance Grid Trading strategy to Gunbot? I know Gunbot for a long time but I never try to use it because I don’t how to use an API or the technicalities of it.  Currently doing Grid trading on Binance since it has Neutral, Long and Short position feature that is effective for DCA trading/scalping.

@chipard, That’s the strategy if there’s no trend and you didn’t know the direction of the trend but if there’s a define trend direction, Opening position with fix leverage and margin is better to get huge profit on the trend.

[crwth]

Is Gunbot using API to trade? What’s the difference between Binance Grid Trading strategy to Gunbot? I know Gunbot for a long time but I never try to use it because I don’t how to use an API or the technicalities of it.  Currently doing Grid trading on Binance since it has Neutral, Long and Short position feature that is effective for DCA trading/scalping.

Yes it uses API to trade. Gunbot has grid strategy as well, you can see my video here. The differences between the two is that you could automate everything to how much is going to be calculated per trade and not needing to know which direction you should pick because it will be determined by indicators already.

It will be easy to setup the APIs to trade. If you purchase Gunbot, you would be automatically enrolled to Gunbot school where you would learn everything about it. It's not that complicated and I would be willing to assist you if you want.

[Zilon]

I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?

Leverage is the easiest way to get an account all blown off. Low leverage and low margin keeps your trading strategy in check. As a trader matter how good your strategy might appear it won't give you a profitable trade at all times. But with low leverage and low margin keeping it all in check it helps save trades both in losing and winning trades

[Zackgeno96]

I don't think you can consider that as a strategy and lowering and increasing your leverage is not strategy either it was just increasing risk and lowering risk for me so I don't think it is strategy.

[palle11]

Understand this that low margin and low leverage are not the same thing with stop loss so they function differently. If you have chosen a low leverage to trade with it means you don't want to take alot of risk on your account, that you don't want to carry too much trade in your account at the same time and this will also reflect in your margin level when your account is burning down or increasing. Stoploss is to avoid you from losing beyond a certain limit. You set your stoploss yourself and the exchange provide leverage for you to choose from.

[joeperry]

If you are going to use lower leverage and afraid of liquidation price why not stay in spot market? It is much safer than the futures trading but don't get me wrong they are both risky but trading with leverage is like multiplying the risk you can get.

And I agree with @Zackgeno96 I don't think you can call that as a strategy.

[Oshosondy]

I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?

It is best not to be greedy, the cause of loss.

Assuming you use 1x margin and the market price direction favors you, then you increase your margin to 2x after making some profit already, if the market price go against the position opened, remember the price will be closer when you will start to lose. This is not a good strategy. It would be better to just close the position and take profit with you or still leave the position opened if your analyses predict the market to still go further in your direction taken.

Some experts can though start from 1x margin, if the market favors them early, they close the market and make profit, but if the market did not favor them at first, they know they have a far range liquidation price which seem impossible to happen, they can increase the margin to 2x after the market has not favor them to certain price so that if the market later go in the direction taken, the price to when they will be making profit will get nearer to the market price. So some people can be 3x leverage traders, but because of disappointment that may first occur, they can start from 1x so if the market do not favor them at first and they predict correction to happen, they can increase the margin from 1x to 3x. But this is very risky and should be done by experts.

[GreatArkansas]

and then add if does the price follow your strategy? Is this also your strategy?

I believe it will always be possible to change your leverage or even add more to your positions if you are really positive.
But for me, I am not a fan of this strategy.
Before I enter to trade, I plan all things, fixed position size, fixed price entry, fixed take profits price or partial take profits price.
If it will not matter at all to you, you can always adjust your position size or leverage anytime especially if you are confident.

[maydna]

If you are going to use lower leverage and afraid of liquidation price why not stay in spot market? It is much safer than the futures trading but don't get me wrong they are both risky but trading with leverage is like multiplying the risk you can get.

And I agree with @Zackgeno96 I don't think you can call that as a strategy.

I agree with you. Don't put yourself in a position that we don't understand so that it won't give us trouble. Trading in the spot market can provide an opportunity for profit if you don't understand how to trade futures. You don't need to take bigger risks like in futures trading, and you have to wait for the price to go up and down to enter the market. If you have successfully bought the coins, you just have to wait until the price increases and sell your coins.

[tbct_mt2]

I know that lower margin and low leverage are also farther away from the liquidation price

If you are bad with spot trading, you should never touch leverage, margin trading or future trading.

so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?

I don't understand what you mean. Avoid hitting your stop loss early, what does it mean? Stop loss is a tool to protect your capital in case of downward movement. It does not mean all times your stop loss order filled, price will fall deeper. Sometimes, price will turn oppositely after hitting stop loss price. It can be a dead cat bounce or a real recovery but don't worry about it. Because protect your capital is more important than gambling and see it goes away by market massacre.

[livingfree]

I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?

If you're not fond of leveraging.

You better stay on spot trading but I get the idea of being used to it if you're not going to try it. Just stay with the spot market if you're not yet prepared for it.

But if you're like testing then test out with low leverage with an amount that you're totally fine if you don't know when you'll be liquidated.

[wxa7115]

I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?

Leverage is the easiest way to get an account all blown off. Low leverage and low margin keeps your trading strategy in check. As a trader matter how good your strategy might appear it won't give you a profitable trade at all times. But with low leverage and low margin keeping it all in check it helps save trades both in losing and winning trades

Personally I have always thought that only a selected few should use leverage at all and the rest should simply avoid it as the risk that you lose it all raises exponentially the more leverage you use.

Since even a low amount of leverage like 3x and 4x can be more than enough to destroy your account relatively quickly, now some may argue that a stop loss can be more than enough to save them, but we know that when there is a high level of volatility in the market slippage can be enormous, so even with a stop loss your losses can be way higher than what you thought and they can be more than enough to erase almost all the profits you got during a bull market.

[Fatunad]

I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?

Your choice! Just make out some adjustment whenever you do see that it could really be trigger out easily because this had been the main problem when you do make out some SL's too shallow.
Even if you arent dealing with high leverage or margin but still volatility could really make things even more worst if you dont really make yourself that aware on how thing works.
Just see for yourself and made out appropriate actions depending if it does work or not.Its a matter of trial and error imho.

[ajochems]

If you are speaking about the future trading.Then you need to do low leverage and low margin.And you should keep the liquidation with high volume.Because only the liquidity will save you from the full loss.When the price of invested coin will further decreased,you should do of the adding of the liquidity again.You should do this till the full amount of the investment is recovered.

[Kelvinid]

I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?

Honestly, you just end up losing more rather than protecting it.
I suggest not to follow that strategy, it wasn't helping you anymore. You'd better set your low margin and low leverage not far from the liquidation price for this it helps you easily cut the losses once the price fall.
https://blog.tokenomy.com/education-tutorial-eng/what-is-stop-loss-in-crypto-trading/

But I suggest trying to communicate your trade, making some discoveries helps you understand the impact of the STOP-LOSS strategy.