The world of crypto currency trading attracts thousands of new traders every day. It takes a lot of time, patience and pressure to create and test your trading strategy in a quality manner. Not everyone can and is willing to spend hundreds of hours of practice on this. And in pursuit of the desired profit, beginners neglect not only the construction of a strategy, but even minimal risk management. And this is a very big problem.
Why only 1-10% of traders remain in the game according to long-term statistics in trading? Because most of them simply lose their deposit, become disillusioned with trading and their abilities. And elementarily, they do not have a trading deposit with which to work.
What is Pro Mode and how does it work?
From the introductory part of this article, you could guess that the main task of Pro Mode is the fight against liquidation.
Each newly created futures strategy is created in “Safe mode”. This means that by default, it will have settings restrictions.
Because a small percentage of users are engaged in self-education in risk management issues, we decided to do this work for them 🙂
As long as Pro mode is not activated in the strategy settings, our system will automatically calculate how many percent of your balance you want to use in the settings. The default limit reacts to exceeding 10% of the strategy balance.
Now let's get into some details:
1) At the time of creating a futures strategy by default, it will work with active Safe mode restrictions.
2) Until you have connected the exchange connection to the strategy, the system sees 0 in the balance. This means that any settings will result in you not being able to save and apply these settings. In this regard, you will see a notification
The exchange is not connected or the balance is 0
3) After connecting the exchange to the strategy, the system carefully calculates all the settings you specified and their size. If in a situation where all orders are processed, in total you will use more than 10% of the strategy balance, you will not be able to save and apply these settings.
4) Parameters such as the size of the starting order, the size of the safety order, the martingale of the size of the safety order and the number of safety orders are involved in the calculation. If you've made settings that the system won't let you save, decrease some of those settings.
5) At any time you can activate Pro mode and use any settings without any restrictions.
The names of these functions speak for themselves! If you are a beginner, want to save a deposit, but are not confident in your abilities, then use limited settings at first. At the very least, it will free you from unnecessary calculations. You can be sure that by trading with limited settings, your futures strategy will always have a 90% free margin, which minimizes the chances of liquidation.
If you are an experienced trader, confident in your skills and you do not need outside help, feel free to activate Pro mode. This will remove any restrictions from your settings and allow you to create a strategy with any level of risk.
Sample
1) For the new strategy, the balance will be $63. This means that Safe mode will allow you to use 6.3 dollars of margin in the sum of all settings.
2) Strategy settings: leverage x5, starting order size - $5 (including leverage, $1 margin will be used), safety order size - $10 (including leverage, $2 margin will be used), number of safety orders - 2. In the sum of all orders, $5 of the strategy margin will be used.
In this case, Safe mode will allow us to save the settings and we are left with more than 90% of the maintenance margin, which pushes our liquidation price as far as possible and makes our trading safe.
3) If we increase the size of orders or the number of safety orders, for example, up to 6 - 10%, the limit will be exceeded. And we will see this message
4) If at this stage you do not activate Pro mode and save the settings, the system will not allow you to do this. You can change the settings, or confirm your willingness to work with increased risk and immediately activate Pro mode.
Resume
The fight against liquidations is one of our main tasks! Much of our current and future development is devoted to solving this problem. In combination with other tools of our strategies, loss of balance will definitely become an extremely rare situation. A large amount of maintenance margin when using Safe mode and a stop loss that is comfortable for you will make your trading as safe and profitable as possible in the long run.
Please treat futures trading as responsibly as possible and use the automated tools of our strategies to facilitate the trading process.
Happy trading!