What is an “Safety Order”
A Safety Order is a risk-management tool used by AI agents (and traders) to average down an entry price when the market moves against an open position.
🔍 How It Works
Select the Asset Choose the cryptocurrency or asset you wish to trade.
Enter Your Position Open a buy (long) or sell (short) position based on your strategy.
Set the Safety Order Level Define the price at which the safety order should trigger—
For a buy safety order, set below the current market price.
For a sell safety order, set above the current market price.
Define the Safety Order Size Choose how much additional quantity to buy (or sell) when triggered. • You can scale order sizes to more aggressively average down.
Confirm the Order Review your safety order price levels and sizes, then submit.
⚠️ Key Considerations
Averages Down Cost: Lowers your average entry price, so a smaller reversal is needed to break even.
Increased Exposure: Adds to your position size, which can magnify losses if the market keeps moving against you.
Use Judiciously: Align with your risk tolerance and overall strategy; consider backtesting first.
Reminder: All trading involves risk. Only trade with funds you can afford to lose.
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