What are the risks?
Trading involves significant risk, and you can lose money. Here's what can go wrong, and how risk is kept in check.
Your risk is yours to set
You set the limits for each bot yourself: a risk level from 1 to 5, and a max position size from 50% to 500% of your capital. The bots always stay inside them. Tighter limits mean smaller swings, and that is the quickest way to lower your risk.
Risk management is shared. Each bot has its own risk controls built in, and your limits sit on top of them. Veuby maintains the bots and the hosting; you own the limits, the keys, the accounts and the money on them.
What can go wrong?
Read this before you start. The same points are in the license agreement you sign.
You can lose money
You can lose some or all of the money you trade with. Only trade with money you can afford to lose.
Leverage makes losses bigger
With leveraged products such as perpetual futures, losses can be large and fast, and the exchange can close positions.
Your copy of the bot trades on its own
While it runs, your copy of the bot places orders within your limits without asking you to approve each one.
Things outside anyone's control
Software errors, interruptions in hosting, the internet or the exchange, and orders filled at poor prices can all cause losses. Exchanges can also have outages, freeze accounts or fail.
Past results aren't a promise
Neither live results nor backtests guarantee future results. Backtests are calculated on historical data and don't reflect actual trading.
How is risk kept in check?
Our proprietary models are built with risk control from the start.
Strict loss limits
Every position is sized against a hard loss limit, so a single trade stays small compared with the capital.
Automatic hedging
Hedge positions are opened and adjusted automatically when conditions turn against a position.
Data and instructions are checked
Market data and every instruction pass checks before they are used.
Adapts to the market regime
The models read whether a market is in an uptrend, a downtrend or flat, and adapt.
Rising and falling markets
The models take long and short positions, so they can make a return in both bull and bear markets.
Strict testing before going live
Every model is tested strictly, and thousands of variants have been rejected.
Made for larger amounts
Execution is planned to keep slippage low, even for larger accounts.
Your limits on top
The maximum position size and risk level you set apply on top of the models' own controls.
Risk controls reduce risk; they don't remove it. You can lose money.
Layers of protection
Each layer works on its own, inside every bot.
One account per bot
Each bot trades in its own sub-account at the exchange, with its own key. A loss in one account cannot reach another bot's account or your main account.
Positions sized from a fixed base
Every position is a fixed share of a sizing base set for the bot. Profits never make the positions bigger on their own. They grow only when the base is changed on purpose.
Smaller in rough markets
Ladders and Momentum trade a coin in smaller positions when its daily moves grow. Composite holds most of its size in pairs, one coin against another, which a market-wide fall hits only in part.
An account brake
Composite and Momentum watch their account's highest balance. If the balance falls a set distance below it, every position is cut in half. A deeper fall closes everything and stops the bot until a person decides to restart it.
A stop on every ladder
Ladders works coin by coin. Each coin's ladder has its own stop that closes the whole ladder, and the coin is then left alone for a day. Its take-profit orders wait on the exchange, so they work between checks too.
Exits for losing positions
A position leaves when the price has moved against it by a set amount, or when its trend turns. Momentum ranks its coins again every day and closes those that no longer qualify.
Careful order handling
Limit orders come first. Every order carries a name, so a restart can never send it twice. Emergency closes can only make a position smaller. After an unclear network error a bot does not resend: it reads the real position at the next check and corrects from there.
A reality check every hour
Every hour each bot compares its own book with its real position at the exchange and trades small gaps back. A position that looks impossible is left alone and flagged for a person.
Safe with bad data
The bots decide on finished hourly prices only, never on a half-finished hour. When prices or other inputs can't be read, the bots hold what they have rather than guess. A bot refuses to start if its clock is off by more than five seconds.
Restarts without surprises
If a bot's program stops, the server restarts it within a minute. A bot that a person or its brake has stopped stays stopped after the restart. Error messages never show a key's secret.
A record for every hour
Each bot writes down its balance, its fall from the high, its position size and its margin every hour. A daily status check compares every position at the exchange with the bots' books and answers PASS or REVIEW.
What the controls don't cover
No set of controls covers everything. These are the limits we know of.
Checks run once an hour
The brake, the stops and the exits are checked once an hour. They are not orders waiting on the exchange, so a fall inside the hour is acted on at the next check.
Each bot looks at its own account
There is no limit across bots. Each bot sees only its own account.
The exchange has its own rules
Outages, changed margin rules, forced liquidation and auto-deleveraging at the exchange are outside the bots' control.
Nothing runs when the server is off
Positions at the exchange stay as they are until the bot is running again.
History is not a promise
The controls were tested on past prices. Live markets can move in ways the past did not.
What can you do?
Set your limits
Choose a maximum position size and risk level you're comfortable with.
Trade what you can lose
Keep only money you can afford to lose in the account your copy of the bots trades.
Keep your account safe
Keep two-step verification on at Veuby and at your exchange.