When it comes to trading cryptocurrencies, many people adopt a "more is better" mentality. This often leads traders to take on more risk than they can handle, which can result in heavy losses.
Is not uncommon for beginner traders to set up DCA bots with very risky parameters in an attempt to maximize their profits. However, in a market downturn, DCA bots can quickly fill DCA orders and dry up your funds.
If you find yourself in this situation, don't despair. There are a few things you can do to try and salvage the situation.
First of all, you need to take a step back and assess the situation. After you have taken a breath and put emotions aside, you can go over this account recovery checklist.
Let's go over these points in more detail.
As soon as you realize that your account is overextended, the first thing you need to do is stop all bots and remove any DCA orders that are still active. Stopping the bots will prevent the bots from opening new deals while removing DCA orders from existing deals will prevent the bots from executing more DCA orders and further drain your account. Even if you completely ran out of funds, the bots are monitoring your balance, and as soon as more funds become available they may unexpectedly execute DCA orders. So make sure you have completed this step before doing anything else to avoid an unwelcome surprise.
When stopping the bots, make sure you don't close the deals. We will be manually closing some deals in a later step.
Keep an eye on locked funds in pending orders. You will want to free as many funds as possible to manually allocate them.
Next, you will want to lower the take profit of remaining deals to 0.05%. This will help minimize your losses and close deals faster, freeing funds to recover other deals.
If you have any deals that are in profit, regardless of how small, you should close them. The same goes for deals that are very close to breaking even. It is better to take a small loss now and free up funds to focus on recovering other deals.
If you have any extra cash, now is the time to deposit it into your account. The more funds you have available, the easier it will be to recover your account.
The next step is to analyze your remaining deals and prioritize which ones you want to focus on recovering. Take a look at all of the deals that are still open and assess how likely they are to be profitable. You will want to prioritize the deals that are most likely to be profitable and focus on those first. Take into consideration the size of the loss, the current market conditions, and your risk tolerance.
Once you have determined which deals you want to focus on, it's time to add funds. But don't add more funds without a plan, take a look at technical indicators and try to determine where the bottom is. Adding funds too early may mean that you end up losing even more money.
If you don't have the technical know-how to use technical indicators to time when to add extra funds, you may add extra DCA orders at specific price drops instead. Just maz
The final step is to keep a close eye on your account and make sure you are regularly closing deals. As soon as a deal starts to turn around, close it. The most important thing is to remain calm and patient and wait for the right to make a move.
Managing an overextended account is never easy, but by following these steps you can give yourself the best chance of success.
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