When it comes to trading in the cryptocurrency market, being strategic and mindful is crucial to avoid unnecessary losses.
It’s important to remember that adding too many entries to a trade that has already reached all three entries provided by BitsTurtle can increase our position size and expose us to higher risks.
As we add more entries to a trade, the liquidation price starts to come closer to your average entry point. This can result in faster liquidation if the market goes against your position.
To avoid such situations, we recommend having 1 trade at 5th entry and 3 trades at 4th entry at most. This will allow for some breathing space between the liquidation price and the average entry price.
We recommend adding new entries under the following conditions:
1. Add a 4th entry if the percentage reaches -100%.
2. Add a 5th entry if the 4th entry has been filled and the percentage drops to -150%.
Please edit the take profit of the trade whenever a new entry has been filled, ensuring that the potential profit falls within the range of 2-5 percent. ( Please ignore potential profit if we have created a trade manually. )
It’s crucial to remember that tough situations in the crypto market are not uncommon. However, the key to successful trading is to remain calm, patient, and strategic.
We have been through even tougher situations than this before and have made more profit from those trades than we typically make with trades that close on the first entry.
During the black swan events, which occur at most once a year, it is essential that we should be prepared to handle such situations. We have made sure to provide our users with proper guidance for such events.
In such events we should be prepared to add some funds to our account so that we can protect our capital from liquidation.
During times like these, it’s essential to wait for the market to correct itself and make sure we manage our trades effectively.
Click Here for more info on How to manage your trades.
