Buy - Sell - Leverage

Setting an allocation is good, but understanding it is even better! Why can the allocation vary from -500% to 500%?

• Buy: If you choose an allocation of 20%, it means you’re taking a long position with 20% of the capital allocated to this strategy.

• Sell: If you select -20%, it means you’re taking a short position (betting on a decline) with 20% of the capital allocated to the strategy.

• Leverage: When the allocation exceeds an absolute value of 100% (-100% or 100%), it involves using leverage provided by the broker. In other words, you borrow money for a very short term to invest a larger amount (which increases both your potential gains and losses). For example, an allocation of 300% means you’re using 300% of the capital allocated to this strategy (three times the allocated capital).

How to Configure It?

Unlike most blocks, the allocation block has some optional settings. You can set a base allocation that remains fixed throughout the trade. However, it’s also possible to increase the allocation value by creating a loop that goes through an allocation block multiple times. For example, if you’re already in a long position and the bot wants to open a new long position, you have two options:

• Case 1: Maintain the base allocation set in the "Allocation Percentage" parameter.

• Case 2: Increase the allocation.

Case 1: Fixed Allocation

This is the simplest case. When you open the allocation block, you see only the parameter "Allocation Percentage." Here, you set the percentage of your capital you want to use for this position (from -500% to 500%).

Case 2: Incremental Allocation

This block lets you set the initial allocation and vary it by configuring it differently (enabling two types of allocation blocks: initial allocation and incremental allocation).

Case 2.1: Incremental Allocation by Absolute Value

To switch to incremental allocation, click the "Switch to Incrementation" button.

You’ll now see two new parameters:

• Incremental Percentage: The percentage by which the allocation will increase or decrease (if negative). For example, here, you might set it to 10%.

• Increment Limit: The limit beyond which the allocation will no longer increase or decrease. Here, you may set it to a maximum of 500%.

• Incrementation Ratio: For each increment, you can choose to reduce or increase the percentage increment. If set to 1, each increment will add 10% to the allocation. If set to 0.5, the first increment adds 10%, the next 10% * 0.5, then 10% * 0.5 * 0.5, and so on.

Case 2.2: Incremental Allocation by Relative Value

You can also allocate a percentage of your remaining capital by checking the "Use the remaining capital" box.

To do this, first set the "Increment Limit" parameter, which defines the maximum allocation desired (100% max for spot trading, up to 500%, or 100% with leverage 5 for futures).

Then, adjust the final parameter, "Percentage of the remaining capital." For example, if set to 50%, with an initial allocation of 60%, and an Increment Limit of 500%, the next increase would be (500% - 60%) * 50% = 220%.