Leveraged Trading
Last updated
Last updated
Leveraged Trading at Bitfinex is a type of trading that allows users to use their funds at Bitfinex as collateral and to trade up to 3.3 times the amount of funds you have as collateral. In addition to this, you need to maintain a 30% ratio to keep a leveraged position open, which is called margin maintenance. When the amount you have leveraged falls below 30%, your position will be liquidated at market price and this is called a margin call. Margin calls are to be avoided at all times, as it drastically reduces your collateral. This is the basics of leveraged or margin trading at Bitfinex. Haasbot now allows users to take advantage of this feature to increase their profits on profitable trading strategies, but this also increases the risks of losses as well. Only use leveraged trading with Haasbot if you know what you are doing and have a profitable strategy for the current market conditions.
There are two types of leveraged trading that Haasbot's leveraged trading module allows, which are Bitfinex Single Margin and Bitfinex Double Margin trading. These are enabled via the "Bitfinex" API Setting in Settings.
In order to set up Margin Trading at Bitfinex, you must enable Bitfinex in Settings --> API Drivers. To do so, you will start off by right clicking on Haasbot in your system tray, then click "Settings." You may have to enter your login information, which the default login is admin/admin.
Next you will click on the tab that says "API Drivers" and the select "Bitfinex." Once you have done so, Haasbot will restart.
Once you have restarted Haasbot, you will need to enter in the API key for Bitfinex. To do so, go to Bitfinex.com, login, and then create an API key. There will be two parts, a "Public Key" and a "Private Key." Once you have these two, open up the Haasbot 2.0 Interface, click on "Exchanges," then click on "Connect" next to Bitfinex. Enter in the API keys and click "Save." At the end, Bitfinex should be connected and look like this:
And thats it, you are now ready to create either a Bitfinex Single Margin Trade Bot or a Bitfinex Double Margin Trade Bot.
The Bitfinex Single Margin module is a type of Trade Bot that allows Haasbot users to take advantage of leveraged trading. The main difference between the Bitfinex Single Margin and Bitfinex Double Margin is that the Bitfinex Single Margin will only open and close one type of leveraged trade (either a long or a short).
It is generally recommended that if you decide to only open and close shorts, your collateral should be in fiat. Alternatively, if you only want to open and close longs, your collateral should be in the cryptocurrency you are trading. Remember, this will only generate Longs or Shorts, not both. You can only have one position open per account as well, so it is highly discouraged to try to create multiple positions within one bitfinex margin account.
Settings
As for setting up the Trade Bot for Bitfinex Single Margin trading, you select the Indicators, Insurance, and/or Safeties as usual but you have to select which leveraged position you would like to take. Your options are the following:
Open Short or Close Existing Long
Open Long or Close Existing Short
Haasbot 2.0 Interface
These options work as they are described. Basically the way this works if that say you decided to only create shorts. You will go ahead and select "Open Short or Close Existing Long" and if you have an existing long open, it will close it on a Sell Signal (from the Indicator or Safety you have set up) and then it will immediately open a short on that same Sell Signal. When a Buy Signal is signaled, it will close the short and wait for the next Sell signal to create a new short. The opposite is true if a user selected "Open Long or Close Existing Short." Where Buy Signals will create Long positions and Sell signals will close longs.
The Bitfinex Double Margin module that allows Leveraged Trading on Bitfinex that allows Haasbot users to take advantage of leveraged trading to the fullest extent. The main difference between the Bitfinex Double Margin and Bitfinex Single Margin is that the Bitfinex Double Margin will open both Long and Short positions according to Buy and Sell Signals.
For instance, for every buy signal, Haasbot's Trade Bot will close a short (if there is one open) and then open a long. After that, for every sell signal, the long will be closed and a short will be opened. This cycle will constantly repeat itself as long as the Trade Bot is activated.
This module is only recommended for users who know what they are doing and have a profitable trading strategy for the current market conditions.
Settings
As for setting up the Trade Bot for Bitfinex Double Margin trading, you select the Indicators, Insurance, and/or Safeties as usual but you have to select the next action for the Trade Bot to take. Basically, it just needs to know if you currently have an option position and/or what the next action should be. Your options are the following:
Open Long - You don't have an active leveraged position yet and you want the first trade to be a long on the next buy signal.
Open Short - You don't have an active leveraged position yet and you want the first trade to be a short on the next sell signal.
Close Existing Short and Open Long - You have an existing short position and you want the next buy signal to close the short and open a long.
Close Existing Long and Open Short - You have an existing long position and you want the next sell signal to close the long and open a short.
Haasbot 2.0 Interface
Once you have selected the Next action to be, you can set up the Indicators, Insurances, and Safeties that you want to generate the Buy and Sell Signals and Haasbot will utilize leveraged trading for both buy and sell signals.
