Pyramid orders
You can either decide to use pyramid entry method with Limit or Market orders.
Last updated
You can either decide to use pyramid entry method with Limit or Market orders.
Last updated
The pyramid limit orders method allows you to open a position with multiple limits orders at different prices (also can be referred as the dollar cost averaging strategy).
Ex: We want to open a 100 000$ position with 5 different limits orders spaced by 1%.
The bot triggers a long position at 25 000$. Because we want to fill our order with 5 different limits entries, each limit order will represent 20% of our total position of 100 000$. The first long limit order is set at 25 000$ for a 20 000$ size. At the same time, 4 others limits orders will be placed, each of them with the same size, but at different prices during 4 hours only:
Order 1: 20 000$ at 25 000$ Bitcoin price
Order 2: 20 000$ at 24 750$ Bitcoin price (1% lower than first entry at 25 000$)
Order 3: 20 000$ at 24 500$ (1% + 1% or 2% lower than first entry at 25 000$)
Order 4: 20 000$ at 24 250$ (3% lower than first entry at 25 000$)
Order 5: 20 000$ at 24 000$ (4% lower than first entry at 25 000$)
Additionnal orders will always be placed in favor of your side, if it's a long, entries will be placed lower, if it's the short, entries will be higher.
Note that, your stop loss/take profit will be placed looking at your average entry price, and is calculated after all limit orders have expired.
The pyramid Market Order works exactly the same as the Pyramid Limit order, however it will use a stop-market order once the price reach the price-level targeted. By using this method, because of the nature of market orders, you'll be fully filled but you can also suffer a slippage.
