Hi there,
for about 2 months I am using grind trading on Binance and Kucoin. On Kucoin I use a very wide range without leverage for the long term, on Binance I create rather narrow grids for the short term when I expect a time of sideways action, especially after strong price action. For these short-term Grids, I use "high" leverage, usually an x10.
Now I was wondering what would happen in case of leveraging a wide grid for the long term (let's say BTC Grid range 22000 - 100.000, 149 steps, x10 leverage). How high would be the risk of liquidation in a grid with x10 leverage? I was playing around in excel and I am normally mathematical experienced but couldn't figure out how the risk of liquidation changes while running a grid. Is there a risk of liquidation at all due to the constant averaging down in the grid? And if there is a risk of liquidation, how could I calculate the amount of margin to avoid liquidation of my x10 futures?
Would be happy to get some ideas from you. Or maybe someone already has experience in this approach.
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