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Position size

Position sizing is the foundation of the trading strategy on Psyll. When combined with pyramiding, it allows for precise risk management. Understanding how these mechanisms work will enable you to optimize potential profits and tailor your strategy to your goals.

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Trading bots

Create, configure, and optimize automated trading bots to execute strategies efficiently on supported exchanges.

Position size is one of the key parameters of any trading strategy on the Psyll platform. It determines the amount of capital allocated to a single trade or order and directly affects the level of risk, potential profits, and the overall structure of the strategy executed by a trading bot. By configuring this parameter precisely, users can better manage their investments and tailor strategies to their individual goals and risk tolerance.

Position Size and Bot Type

On the Psyll platform, there are two main types of trading bots:

  • Single-position bots - open only one position per signal and do not use a pyramiding mechanism. They are suitable for users who prefer simpler strategies with limited risk. Once the position is closed, the bot does not increase exposure in the same direction.
  • Pyramiding bots - systematically add additional positions in the direction of an existing trade, increasing total market exposure. The pyramiding mechanism can enhance potential profits during favorable trends but requires careful capital management and precise determination of individual position size.

For pyramiding bots, the total capital exposure is the product of the single position size and the number of additional entries within the pyramid. This structure allows users to accurately estimate the maximum level of investment in a trading session, which is essential for maintaining financial discipline and staying within their personal risk tolerance.

It is important to note that pyramiding statistics - such as the number of entries, maximum exposure, or the performance of each pyramid stage - are available only for bots using the pyramiding mechanism. This section is not visible for single-position bots.

Benefits of Proper Position Size

  • Precise risk control: Setting the size of a single position allows users to limit potential losses, even during volatile market movements.
  • Investment predictability: Defined position size enables estimating the maximum capital exposure for a trade.
  • Profit optimization: Combined with pyramiding, a properly chosen position size can significantly improve strategy efficiency in favorable market conditions.
  • Strategy flexibility: Users can adjust position size to different strategies and trading styles, testing various approaches depending on market conditions.
  • Better financial planning: It allows estimating the maximum capital that will be used, aiding budget planning and portfolio management.

Configuring Bot Position Size

Position size is configured individually for each bot in the panel: Trading Account > My Bots > [Selected Bot]. The user defines the capital allocated to a single position, expressed in units of the base asset. This parameter can be adjusted at any time, taking into account:

  • available account balance,
  • historical performance of the bot,
  • current market conditions and trends.

Setting the position size correctly helps maintain a balance between safety and potential profit, forming the foundation for effective and sustainable automated trading.