First of all you need to remember that if price goes below your entry price it doesn't mean that you lost already. 
Remember that it is just a regular case and you are still able to close your deal with a decent profit.

If you use enough number of safety orders - you strategy will buy again and again with every step of market fall. Thanks to that your average entry price will be lowered and your take profit target gets closer.

If you use enough safety orders - you are even don't need to wait for a full price recovery.

Even after 50% price recovery you will be able to close your deal with a profit.

Note: Read the article about how safety orders and position averaging work.

Rule #1 - To avoid liquidation, keep an eye on your Futures Margin Balance

When the price goes in the opposite direction against your opened position - the Binance Futures exchange starts to temporarily freeze a part of your available futures balance and use it as the margin (collateral) for your opened position. 

If your margin balance drops to zero - Binance will liquidate your position and all your futures balance on your account.

In case of price drop, you must be sure that you have enough margin balance on your futures account.
The higher balance you have, the lower the liquidation price.

You can use Binance Futures Liquidation price calculator to calculate how the increasing of your futures balance will lower the liquidation price.

What to do if the price goes against my position?

Option №1: You can use stop-loss function to limit and control possible losses.

Note: The stop loss option doesn't mean the limitation % of a possible loss amount.
The stop loss means the % of a price drop at which your position should be closed by the strategy.
The stop loss % is calculated based on the start order execution price.

For example, you set up a 20% stop loss.
Your start order has been executed at $10,000 price. This is your entry price. 
The strategy will close the deal when the price drops -20% from $10,000.
So if the price drops to 8,000 the strategy will close this position.

You need to set up Stop Loss settings before strategy starts a new deal. 
Or you can set up a stop-loss order on the Binance exchange manually if your strategy has started the deal already.

 

Option №2: Wait for the price recovery and average your position. 

To don't wait for the full price recovery, you can average your position and bring take profit target closer:

- the strategy can average your position automatically by using safety orders (you can set up safety orders in the strategy settings). 
- you can average your position manually by manual increasing of your position amount (buying more BTC) at the bottom of the price drop (if you trade long) or at the peak of the price rise (if you trade short).

Averaging the entry price of your position brings closer your take profit target price - so your deal could be closed even before full price recovery. But your liquidation price will come closer as well, so you need to make a wise and balanced decision.

Note: Read the article about how safety orders and position averaging work.

Option №3: Launch the 2nd strategy in the opposite direction to hedge your position.

If you trade long and the price starts to fall you can launch the 2nd short strategy.
This action will hedge your position.
If you receive a loss on your long position - you will receive an equal profit on your short position at the same time.
Two positions secure each other.

Note: Remember that if you want to launch 2 futures strategies - you need to connect 2 Binance Futures account to your GT App account.

Option №4: Close your position manually right now with a small loss.

If you are sure that the market trend definitely has been changed and you don't want to risk and wait for the price recovery for a long time - you can close your position right now with a small loss.
After that you can wait for the market trend stabilization and price moving in a particular direction. 
As soon as the market trend will be clear you can update strategy settings and launch your strategy for a new deal.

Support

If you will have any questions or need any help/assistance in setting up your first strategies - please contact our VIP manager in Telegram at @GT_App_CSbot.

We also invite you to join our Telegram community chat.  In this chat we discuss market trends and share relevant trading strategies 24/7.

Next: 3. Future trading in a nutshell