1.What is Spot Martingale?
Spot Martingale is a medium and long term automatic trading bot that helps users reduce their average cost.
By setting parameters such as Price Deviation, Amount Multiplier, and TP Target Per Cycle, the bot increases the investment each time the price falls, continuously buying in batches to dilute the holding cost, and then sells all at once when the price rebounds, profiting from reversal.
2.Spot Martingale Instructions
Advantages: If you believe a certain cryptocurrency is worth holding and think it won't be in a one-way market for long, you can choose Spot Martingale.
1.High Win Rate: The bot can be consistently profitable in a medium- to long-term volatile market.
2.Greater Capital Efficiency: The bot increases the amount whenever it buys in batches to dilute the holding cost, maximizing capital efficiency.
3.Manageable Risk: The bot does not use leverage. To manage the risk, it buys coins at a user-set Price Deviation with a Max DCA Orders limit.
Disadvantages:
1.Not Suitable for One-Sided Markets If the market remains in a one-sided trend, it may become challenging to reach the “profit-taking point,” potentially turning “floating losses” into “real losses.”
2.Tying up more funds Since each buy and sell order needs to be placed when a bot starts to run, it will tie up larger funds when a number of positions are added.
3.Spot Martingale Parameters Description
1.Price Deviation The preset price drop percentage for additional positions. When the price of the token drops by the corresponding percentage, a DCA order will be executed to increase your position and, therefore, lower the average cost.
2.Max DCA Orders Max DCA Orders mean the maximum number of DCA orders that can be placed per cycle. For example, if the max DCA is set to 8, the system will place 8 DCA orders after the initial order is filled based on the Price Deviation.
3.Amount Multiplier The bot will divide the total investment amount into several equal parts to buy at the bottom of each cycle. This value determines the multiplier for the “buying at the bottom” amount next time in relation to the previous purchase amount, with an input range of 1-2.
4.TP Target Per Cycle In each cycle, Take Profit Price = Current cycle’s Average position cost x PR, where PR = (1 + Profit Taking Ratio + 0.1%) / (1 - Transaction Fee ratio). When the Take Profit price is triggered, the bot will try to sell all coins you have bought to take profit. After the order is fully executed, the bot will end the current trading cycle and start the next one as specified. The trading fees have been deducted from the profit obtained after profit-taking.
5.Stop-Loss Ratio The stop-loss price = average position cost( 1 - stop-loss ratio). When the token price reaches the stop-loss point, and all open orders are fully filled, the position will be closed at market price, and the bot will be terminated. The stop-loss ratio can be set at 0.1%-99.99%.
6.Trigger Price The price that will trigger the Martingale bot to start.
Customize Parameter Settings “Customize parameters” allow users to freely set the “Price Deviation” and “Buy-in Amount” based on their own needs, without being influenced by the system’s formulaic algorithms.
1) Sequence No: The maximum number of buy-ins per cycle.
2) Price Deviation: The next position will be added if the price drops by a specified percentage compared to the last buy-in price.
3) Buy: The number of BASE currency units to buy per order. Users can freely set this value under “Customize parameters”, with a maximum of 10,000 units.
4) Add a Position: Adding a position means increasing an additional buying opportunity. Users can input the corresponding number of additional positions as needed.
5) Delete a Position: Deleting a position means reducing an additional buying opportunity.
Case Analysis of Spot Martingale
Basic Settings & Advanced Settings Taking BTC/USDT as an example, assume the trading fee is 0.2%, and the initial order price is 30,000 USDT. The basic settings include the following parameters:
Investment amount: 30,000USDT
Price Deviation: 5%
Max DCA Orders: 8
TP Target Per Cycle: 10%
The advanced settings parameters are as follows:
Amount Multiplier: 1.5
Trigger Price: 30,000 USDT
To ensure profitability, the take-profit ratio has been increased by 0.1% of the profit margin
Sold Take profit QTY = 23964*1.3811932 = 33099 USDT
Credited Qty = 33099 USDT*(1-0.2%) = 33033 USDT
Total profit = 33033 USDT-30000 USDT = 3033 USDT
Profit Margin = 10%, reached the take profit target.
Customize parameters
Assume “Customize parameters“ are set as follows:
Investment amount: 30,000 USDT
TP Target Per Cycle: 10%
Trigger Price: 30,000 USDT（Assume the price of the initial order is 30,000 USDT）
Based on the “customize parameters,“ the execution for each order is as follows
Assuming a transaction fee rate is 0.2%, to ensure profitability, the take-profit ratio has been increased by a minimum profit margin of 0.1%
Take profit price: 23,354*PR = 25,759 USDT
PR =（1+Profit Taking Ratio + 0.1%) / (1 - Transaction Fee ratio）= 1.101 / 0.998 = 1.103
Sold BTC Qty：Σ Credited Qtyt = 1.284594564
Sold USDT Qty = Take profit price*Sold BTC Qty = 33,096 USDT
Credited USDT Qty = 33,090*(1-0.2%) = 33030
Profit margin = 3030/30,000*100% = 10%, reached the take profit target.
4.How to Create/Terminate Spot Martingale?
4.1 How to Create Spot Martingale?
There are three methods:
1.Follow a bot provider/Copy a backtesting bot: In the Recommended section, you can filter out top performers or backtesting bots and follow a provider or copy a bot to trade.
2.Choose a bot that matches your trading style: We offer three types of backtesting bots: HODL, High-Risk Arbitrage, and Low-Risk Arbitrage. You can choose one to copy according to your trading style and risk appetite.
3.Customize your own bot: You can choose coins and start your own bot by setting its parameters.
Tips: Mainstream tokens are recommended when using Spot Martingale as they are more likely to rebound from a fall and thus avoid a huge drawdown. Complete Process of Spot Martingale Creation
WEB
Bots - Create a Bot - Recommend - Spot Martingale - Set Parameters - Create
APP
Bots - Create Your Own Bot - Average Cost - Spot Martingale - Set Parameters - Create
4.2How to Terminate Spot Martingale?
You can terminate Spot Martingale at any time. Please note:
1.Spot Martingale should be terminated timely when a coin is in a one-sided market.
2.When the bot ends, the remaining coin will be transferred to your Spot Account. You can then decide whether to sell coins in the spot market or not.
3.Spot Martingale is used for medium and long-term volatile markets, so in the short term there may be floating losses as the price has not reversed yet. Please monitor the market trend and invest with caution.
