Safety Order Basics

3Commas use the term Safety Orders, but within the wider trading community Dollar Cost Averaging is a more frequently used term.
Safety Orders are key to your trading success and profit. They are also one of the areas where many traders get confused.

Whilst all Keiko members have access to very specific settings, be aware that sometimes different pairs can sometimes have different settings, so pay close attention to the info within the members’ area.

It is however still important to understand what happens when Safety Orders are applied, and in particular the impact they have on trade size.

As an example, let us assume you are trading BTC-RVN and the bot uses the following settings:

Base order size: 
Safety order size: 
Max safety trades count: 
Max active safety trades count: 
Price deviation to open safety orders (% from initial order): 
Safety order volume scale: 
Safety order step scale:

0.0002 BTC
0.0001 BTC
3
1
2%
3
2%


The first thing is to explain what each of these terms means;

Base order size
This is your initial trade size.

Safety order size
The size of the initial safety order.

Max safety trades count
The maximum amount of safety orders that can be executed for 1 deal

Max active safety trades count
The difference here is ACTIVE. So if maximum was set to 1, the bot will place 1 safety order as soon as trhe trade is placed,  and 2 are not placed but kept as potential spare orders should they be needed. Funds are not placed in reserve for non-active SO’s.

Price deviation to open safety orders
This is the percentage interval between each order.

Safety order volume scale
This is an important one – it multiplies the size of your safety trade on each new safety trade.

Safety order step scale
This scales the price interval between tradesl. The interval increases by multiplying the price deviation by the number entered.

So now, we need to explain  what happens to trade size when using Safety Orders.
This is especially important because it will change your thinking about trade size.
Using too large a trade size is often the reason a trader might fail and suffer large losses. 

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