Overview of the Margin trading bot. Part 1.
Overview of the Margin trading bot
DBX digital ecosystem is one of the fastest growing and most promising projects of 2021. The company’s token is traded on the world’s leading cryptocurrency exchanges. And today we will talk about how to properly trade in dbx/usdt pair, using for this purpose, one of the most popular trading bots – Margin.
In this article we will consider all the key functions of Margin trading bot, mechanisms and features of its work. If you are not interested in the whole functionality, but only in a certain button – we recommend to contact the Margin Help Center.
Margin trading bot
Initially, let's note that a trading bot is a tool for constant monitoring of the situation on the cryptocurrency exchange. It is necessary when it comes to active earning. It should be understood that a cryptocurrency exchange is not built on passive income, but on constant monitoring of supply and demand. It is a rapidly changing, dynamic system that requires control of the situation.
When you are not able to monitor the market, your positions can be managed by a program that you set up based on your strategy. It automatically sells cryptocurrency when the price goes up and buys when it goes down. All parameters are set by you or the developer. More sophisticated bots can analyze the strategies of experienced traders and mimic them.
You can see your entire cryptocurrency portfolio (dbx/usdt is not an exception) in the Margin toolbar (using Shrimpy as an example). There you can see the status of your accounts on each of the exchanges and all the ongoing changes.
- Multi-portfolio function. If you have one cryptocurrency portfolio, using the Margin functionality, you can split it into several separate portfolios and manage them separately for one exchange account. To do this, you need to click on the "Manage portfolios" button in the top menu. Through this function, you can create several portfolios and transfer funds between them.
- Default Portfolio. This feature is necessary to track changes made outside of the bot. If a change occurs, the default portfolio is affected first. For example, when a deposit is transferred to an exchange account, it is in the default portfolio that those funds will appear. If funds are withdrawn, however, they disappear from the default portfolio first.
- Transfer of funds. This option will allow transferring funds between portfolios. Cryptocurrency transferred to another portfolio can be managed by automated algorithms defined for the alternative portfolio.
Looking at the toolbar, next to each portfolio icon, you will find an "Actions" button. These are manual management functions for each specific portfolio, not provided by automated algorithms. Let's take a look at their main types.
- Immediate rebalancing. Once you click this button, the bot will match your current allocations to those indicated in the automated strategy by making trades. It is important that this function is only active if there are automated mechanisms provided by your strategy for this portfolio. If there is no automation, you will not be able to rebalance the portfolio.
- Stop-loss portfolio. This function must be set up beforehand in the "Automation" tab. Then, you will be able to activate it for any of the portfolios at any time. When you turn on the "Stop Loss" mode, the automated strategy will no longer apply to this portfolio, and you will manage it manually.
The Asset Information sidebar contains various information and features. You can open it by selecting an asset in the dashboard or by clicking the search icon in the upper right corner of the dashboard.
- Your position. This reflects the data on the assets (value, amount) stored in your exchange account. The section combines all portfolios for each specific exchange account. It means that the system combines the value of an asset from several portfolios (if you have a multi-portfolio). For example, if you have bitcoin in two portfolios, the system will give the total value of the cryptocurrency in them.
- Asset statistics. This displays the change in the value of the asset over a period of time. At the moment, you can find out the changes for 1 hour, a day, a week and a month.
- Quantity Graph. Based on the assets in all of your portfolios, a graph is displayed that shows the change in asset size over time.
- "Cold Storage". Margin adjusts the operation of the "cold storage" on the sidebar. The distribution of its balance to specific portfolios is also reflected in the graph. The gray bars reflect the balance of the "cold storage", the blue ones reflect the size of the assets on the exchange.
- Asset dominance. Asset dominance is the percentage of a particular asset held in all Margin portfolios.
- Popularity of assets. The popularity of an asset is expressed as the percentage of user portfolios that contain that asset. Importantly, popularity is calculated regardless of whether the asset is dominant - both a portfolio with 100% of the asset and one that contains only 2% will be taken as equal.