Reduce Position Size
Inside the position, you will be able to reduce the size of a position,
even if the price is below the entry price (which you can not do with take-profits).
In the right side, look for the Reduce Position Size and click in the toggle button:
- Take into consideration that you can’t combine reduce orders with take-profits,
if you send a reduce position order, it will remove current take-profits.
Afterward, no new take profit orders can be placed.
If you move the mouse over any title, an explanation will appear:
A detailed description of the options:
Entry Type: As we said, only LImit and Market orders are allowed. The limit is supposed to be a price above current market price, and it will place the order in the exchange at the given target price. The market order will be executed immediately after updating the position.
Target: This is the target price for the limit order, the target price is calculated from the average entry price unless you select the recurring option, then it will be calculated always from the last entry order. If you are using the market entry type you still need to fill this option but it will be ignored.
Percentage from the remaining amount to exit: This is the amount that will be reduced from the available amount inside the position. This can be a little bit tricky to understand, so let’s show an example.
We enter a position with 100 coins, those 100 coins will be available for exiting.
We could use take-profits, or the Exit button, which would exit the position at the current market price. However we decide to place two reduce orders,
each one will sell 50% of those 100 coins.
The first time that we access the Reduce Position Size box, we see that the Available amount is 100, so we introduce 50% as the percentage for exiting, but once we click update, (wait a few seconds and reload the browser, because the order needs to be placed in the exchange), you will see that the new available is 50, the other 50 coins are already locked by the previous reduce order.
Now if you wanna create another reduce order with 50 coins, you need to set 100%, if you set 50%, you would be exiting 50% from 50, which means 25 coins.
Once you place both orders, you will see in the Reduce Order box, now, even if the percentages don’t make much sense, the coins match 100% with your acquired coins:
Recurring: We will soon have a full article about this option, because it gives us very interesting functionalities, but for now we’ll just explain the function.
Basically, if you have the Recurring option checked, it will do two things:
- now the price of the reduce orders are not based on the average entry price, but the price from the last DCA placed.
- each time a DCA is filled, a new reduce order will be created.
Another example to better understand this:
I enter my position with a price of 100, and then I created a reduce order with a target of 10% and a percentage to exit 100%, checking the Recurring option. Additionally, I have a DCA, at -10%.
The first Reduce order is based on the entry price 100, so it will have a target price of 110.
Once the first DCA is filled (at price 90), a second reduce option will be created, at price 99. If you create more DCAs, new reduce orders will be added.
Persistent: The persistent option prevents the position of being closed if there is any pending DCA. Right now, you can have several DCAs, but if your exit orders, exit all your acquired amount, the pending DCAs will be removed and the position will be closed and accounted.
Only, with this option, the position is not closed, it remains open waiting for the DCA to be filled.
*to avoid any unexpected functions, we recommend only enabling this option
if you understand 100% of how it works