Max DCA Position Amount
The maximum capital allocated to a single position using a Dollar-Cost Averaging (DCA) strategy.
DCA involves investing a fixed amount at regular intervals, regardless of market price, to mitigate the risks of price volatility.
For example, a trader might set a $10,000 max DCA position amount to limit exposure to a single cryptocurrency, spreading investments over time to average out entry prices.
This approach is ideal for long-term investors seeking to reduce the impact of sudden market drops.
Take Profit Activation %
The percentage increase in an asset’s price at which a take-profit (TP) order is triggered to secure profits.
For instance, if a trader buys Bitcoin at $50,000 and sets a 10% TP activation, the order executes when the price reaches $55,000.
This automated tool helps traders lock in gains without needing to monitor the market constantly.
Professionals use TP levels to align with technical analysis, while beginners benefit from its simplicity in profit-taking.
Take Profit Retracement %
The percentage of price pullback from a peak after a take-profit order is triggered, used to fine-tune exit strategies.
For example, if a cryptocurrency reaches $100 and a trader sets a 5% retracement, the system may sell if the price drops to $95 after hitting the peak.
This allows traders to capture additional gains if the price continues rising while protecting against reversals.
It’s particularly useful in volatile crypto markets where prices fluctuate rapidly.
Liquidation Protection Order %
A percentage-based threshold that triggers an order to prevent a leveraged position from being liquidated.
In leveraged trading, if the market moves against a position and the margin balance falls below the maintenance margin, the exchange may liquidate the position.
For example, setting a 20% liquidation protection order might close a position before losses deplete the margin, preserving some capital.
This is crucial for managing risk in high-leverage futures trading.
Stop Loss Order %
A percentage-based trigger that automatically sells a position to limit losses when the market moves unfavorably.
For example, a trader buying Ethereum at $2,000 with a 5% stop loss would sell if the price drops to $1,900.
This tool is essential for risk management, protecting traders from significant losses during sudden market crashes.
Beginners appreciate its simplicity, while professionals integrate it with broader strategies like technical analysis.
Coin Whitelist
A preselected list of cryptocurrencies approved for trading within a strategy or platform.
For instance, a trader might whitelist Bitcoin, Ethereum, and Solana to focus on high-liquidity or fundamentally strong assets, avoiding riskier altcoins.
This helps manage risk by limiting exposure to volatile or unvetted coins.
It’s commonly used in automated trading systems to ensure compliance with a trader’s risk profile or market preferences.
Leverage Boost Activation %
The percentage threshold at which additional leverage is applied to a position to amplify potential returns.
For example, a trader using 5x leverage might activate a boost to 10x if the market moves 10% in their favor, increasing exposure.
This high-risk strategy is used when market signals are strong, but it increases the chance of liquidation if the market reverses.
Professionals use it cautiously, while beginners should avoid it due to its complexity.
Leverage Increase
The act of raising the leverage ratio on an existing position to amplify exposure to market movements.
For example, a trader might increase leverage from 3x to 5x on a Bitcoin position to capitalize on a bullish trend.
While this can magnify profits, it also heightens the risk of liquidation.
This strategy is common in futures trading but requires careful monitoring and risk management, especially for less experienced traders.
Add Coin
The process of including a new cryptocurrency in a trading portfolio or whitelist.
For example, a trader might add Cardano (ADA) to diversify their portfolio or capitalize on emerging market trends.
This decision is often based on fundamental analysis, market sentiment, or technical indicators.
For beginners, adding coins should align with a clear strategy to avoid overexposure to volatile assets.
Margin
The collateral required to open and maintain a leveraged position in futures or margin trading.
For example, to open a $10,000 position with 10x leverage, a trader needs $1,000 in margin.
Margin is held by the exchange to cover potential losses.
There are two types: initial margin (required to open a position) and maintenance margin (minimum needed to keep it open).
Insufficient margin leads to liquidation.
Long Position
A trading position where a trader buys a cryptocurrency expecting its price to rise.
For example, buying 1 BTC at $50,000 in anticipation of a price increase to $60,000 yields a $10,000 profit if sold at the higher price.
Long positions are common in bullish markets and can be leveraged to amplify returns, though this increases risk.
Suitable for both spot and futures trading.
Short Position
A trading position where a trader borrows and sells a cryptocurrency, expecting its price to fall, to buy it back cheaper for a profit.
For example, shorting 1 ETH at $2,000 and buying it back at $1,800 yields a $200 profit.
Shorting is common in futures markets and carries high risk due to potential unlimited losses if prices rise.
Beginners should approach with caution.
Liquidation
The forced closure of a leveraged position by the exchange when the margin balance falls below the maintenance margin level.
For example, if a trader uses 10x leverage on a $1,000 position and the market moves against them, losing $900, the position may be liquidated, resulting in a total loss of the margin.
Liquidation protection strategies are critical to mitigate this risk.
Funding Rate
A periodic fee exchanged between long and short traders in perpetual futures contracts to balance market dynamics.
For example, a positive funding rate (e.g., 0.01%) means long traders pay short traders, indicating bullish sentiment.
Paid every few hours (e.g., every 8 hours), it prevents market imbalances.
Traders must account for funding rates in their cost calculations, especially in long-term positions.
Order Book
A real-time record of all buy (bid) and sell (ask) orders for a cryptocurrency on an exchange.
It shows the price levels and volumes at which traders are willing to buy or sell, reflecting market depth and liquidity.
For example, a dense order book with many orders near the current price indicates high liquidity, making trades easier with minimal slippage.
Professionals analyze order books for market sentiment.
Slippage
The difference between the expected price of a trade and the actual executed price, often due to market volatility or low liquidity.
For example, a trader placing a market order to buy 1 BTC at $50,000 might execute at $50,200 due to rapid price changes.
Slippage is more common in altcoin markets with thin order books.
Limit orders help mitigate slippage for precise execution.
Market Order
An order to buy or sell a cryptocurrency instantly at the best available market price.
For example, a market buy order for 1 ETH executes immediately at the lowest ask price in the order book.
It prioritizes speed over price control, making it suitable for fast-moving markets but prone to slippage in volatile conditions.
Beginners often use market orders for simplicity.
Limit Order
An order to buy or sell a cryptocurrency at a specific price or better.
For example, a limit buy order for 1 BTC at $45,000 only executes if the price drops to or below that level.
Limit orders offer price control but may not execute if the market doesn’t reach the specified price.
They’re widely used by professionals for strategic entries and exits.
Leverage
The use of borrowed funds to increase the size of a trading position, amplifying both potential profits and losses.
For example, with 10x leverage, a $1,000 margin controls a $10,000 position.
If the asset rises 10%, the trader earns $1,000 (100% of the margin) but risks liquidation if the market moves against them.
Leverage is common in futures and margin trading but requires strict risk management.
Volatility
The degree of price fluctuation in a cryptocurrency over time.
High volatility, common in crypto markets, means large price swings (e.g., Bitcoin moving 10% in a day).
This creates opportunities for profit but increases risk.
Traders use volatility indicators like Bollinger Bands to inform strategies.
Beginners should be cautious, as volatility can lead to rapid gains or losses.
Liquidity
The ease with which a cryptocurrency can be bought or sold without significantly impacting its price.
High liquidity (e.g., Bitcoin on major exchanges) means tight bid-ask spreads and large order books, enabling smooth trades.
Low liquidity (e.g., obscure altcoins) increases slippage and trading costs.
Professionals prioritize high-liquidity assets to minimize execution risks.
Return on Investment (ROI)
A metric to measure the profitability of a trade or investment, calculated as (Net Profit / Initial Investment) × 100.
For example, buying 1 ETH at $2,000 and selling at $2,500 yields a $500 profit, or 25% ROI.
ROI helps traders evaluate performance across strategies.
Beginners can use it to track progress, while professionals compare ROI against market benchmarks.
Perpetual Contract
A futures contract without an expiration date, allowing traders to hold positions indefinitely.
Unlike traditional futures, perpetuals use funding rates to balance long and short positions.
For example, a trader can hold a 5x leveraged Bitcoin perpetual contract as long as their margin suffices and funding costs are manageable.
Popular in crypto due to flexibility but risky due to leverage.
Market Maker
An entity or trader that provides liquidity by placing both buy and sell orders in the order book, narrowing the bid-ask spread.
For example, a market maker might place a buy order at $49,900 and a sell order at $50,100 for Bitcoin, facilitating trades.
Market makers earn profits from the spread and are critical for liquid markets.
Beginners benefit indirectly from tighter spreads.
Spread
The difference between the highest bid price and the lowest ask price in the order book.
For example, if the bid for Bitcoin is $50,000 and the ask is $50,100, the spread is $100.
A narrow spread indicates high liquidity, while a wide spread suggests low liquidity or high volatility.
Traders monitor spreads to assess market conditions and execution costs.
Initial Margin
The minimum amount of capital required to open a leveraged position.
For example, to open a $10,000 position with 20x leverage, a trader needs $500 as initial margin (10,000 ÷ 20).
This acts as collateral held by the exchange.
Falling below the maintenance margin triggers a margin call or liquidation.
Beginners should start with low leverage to understand margin requirements.
Maintenance Margin
The minimum margin balance required to keep a leveraged position open.
For example, if a $10,000 position requires a $200 maintenance margin, the position is liquidated if losses reduce the margin below this level.
Maintenance margin is lower than the initial margin but critical to avoid liquidation.
Professionals monitor it closely in volatile markets.
Margin Call
A notification from an exchange requiring a trader to add funds to their margin account to meet the maintenance margin level.
For example, if a trader’s $1,000 margin drops to $200 due to losses, the exchange may issue a margin call to deposit more funds or risk liquidation.
Margin calls are a critical risk management signal in leveraged trading.
Cross Margin
A margin system where the entire account balance is used as collateral for all open leveraged positions.
For example, if a trader has $5,000 in their account, all funds can support a single position to prevent liquidation.
Cross margin reduces the risk of early liquidation but increases exposure if multiple positions fail.
Professionals use it for flexibility, while beginners should be cautious.
Isolated Margin
A margin system where only a specific amount of capital is allocated to a single position, isolating it from the rest of the account balance.
For example, a trader might allocate $1,000 to a Bitcoin position, limiting losses to that amount.
Isolated margin is safer for risk management, especially for beginners, as it prevents one bad trade from wiping out the entire account.
Leverage Ratio
The ratio of borrowed funds to the trader’s own capital in a position.
For example, 10x leverage means a $1,000 margin controls a $10,000 position.
Higher ratios amplify returns but increase liquidation risk.
Exchanges often offer leverage from 2x to 100x, but beginners should use low ratios (e.g., 2x–5x) to minimize risk while learning.
Position Size
The total value of a trading position, including both the trader’s margin and any borrowed funds via leverage.
For example, with $2,000 margin and 5x leverage, the position size is $10,000.
Proper position sizing is critical for risk management, ensuring traders don’t overexpose their portfolio to a single trade.
Beginners should keep position sizes small relative to their capital.
Liquidation Price
The price at which a leveraged position is automatically closed by the exchange due to insufficient margin.
For example, a long position with 10x leverage opened at $50,000 might have a liquidation price of $45,000, depending on the margin.
Traders monitor liquidation prices to set stop losses or add margin to avoid forced closures.
Critical for futures trading.
Margin Ratio
The ratio of a trader’s margin to the total position value, expressed as a percentage.
For example, a $1,000 margin on a $10,000 position has a 10% margin ratio.
A higher margin ratio indicates lower leverage and less risk of liquidation.
Professionals use this metric to balance risk and reward, while beginners should aim for higher ratios to stay safer.
API Settings Tutorial
In the API Settings section, you can choose between using a demo (testnet) account and real-money trading; if the checkbox next to DemoTrading is unchecked, real trading is selected. The API key and secret fields must be filled with your Bybit API credentials. Below the credentials, the API Status area shows whether each required permission was granted when the API was created (IP list, permissions to access orders and positions, read-only status, master trader access, margin mode and status).
Master copy trader accounts are not supported. In future updates, affiliate supporters, affiliate partners and investors will be allowed to activate the bot. Before the bot can be used, you must scroll down to the Disclaimer section, read the educational and informational notice for Bovobot, and tick the checkbox labelled “I agree to Terms and Conditions.” After accepting the disclaimer, click the **Validate** button to verify your API credentials and release the bot. To finish, click **Save** and then restart Bovobot so that the settings take effect.
Trading Settings Tutorial
The Trading Settings panel controls how Bovobot trades on your behalf. The **Position** section lets you set the initial purchase amount (Order Amount Quote), the maximum number of coin positions allowed at the same time (Max Coin Positions) and the leverage used for each trade. In **General**, you define the quote currency (USDT, for example) and the maximum number of simultaneous backtests/live tests (Max Livetestings), bearing in mind that multiple tests can strain CPU and RAM.
The **DCA (Dollar‑Cost Averaging)** options specify how additional purchases are handled: *DCA Distance (%)* is the minimum distance from the current profit/loss, *Order Amount Quote Mult* adjusts the size of each additional order relative to the initial amount, and *Max Quote Per Coin* caps the total capital per coin. Under **Security**, you set *Liq. Price Protection (%)*—the percentage above the liquidation price where the bot should place safety orders—and *SL (%)* to define the stop‑loss distance as a percentage of the position’s profit and loss.
**Trailing** controls the take‑profit behaviour: *TP Trailing Retracement (%)* is the distance from the highest profit where the trailing stop is set, and *TP Trailing Start (%)* defines when the trailing should activate as the price moves upward. In the **Filter** section, you can manage the whitelist of coins that Bovobot is allowed to trade; enter a ticker in the Add Ticker field and click **Add** to include it, or select a coin in the whitelist and press **Remove** to exclude it. The bot must be restarted to remove coins completely.
Finally, the **Leverage Boost** options allow the bot to increase leverage when a position is already profitable and in trailing mode. Enabling this feature lets Bovobot use freed‑up capital from the position to purchase additional contracts: *Leverage Boost Start* sets the profit percentage at which the boost is activated, while *Leverage Boost* defines the amount of extra leverage to apply. Click **Save** to store all your settings.