Documentation Index
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Capital allocation is about how much exposure each part of your operation gets. Per-pair, per-mode, per-venue sizing decisions accumulate into your overall risk profile. Allocate well and a single bad pair is absorbable; allocate poorly and one bad pair takes you down.
The allocation hierarchy
Total exchange balance
The sum of all your assets on a given exchange. This is the universe of possible deployment.
Trading capital vs reserve
Roughly
50% deployed to active modes; 50% reserve. The reserve is not deployed to any mode — it’s the buffer.Per-mode capital
Of the trading capital, divide across the modes you’re running. If you’re running BasicMode and FullBullMarket simultaneously, decide the split (e.g.,
60/40).Per-pair capital
Within each mode, allocate per pair. For BasicMode running 3 pairs (
BTCUSDT, ETHUSDT, SOLUSDT), decide per-pair sizing (e.g., 40/30/30).The 25% rule
Sizing examples
The starter — $20,000 trading capital
The starter — $20,000 trading capital
Total exchange balance:
$30,000.- Trading capital:
$20,000 - Reserve:
$10,000
BTCUSDT only.Allocation: 100% of trading capital to BTCUSDT. Single pair, simplest setup.Note: this violates the 25% rule (because it’s 100% on one pair). Acceptable as a starter for the first 1–2 months because:- You’re learning the bot.
- You’re not yet running multiple pairs.
- Your reserve still buffers the catastrophic case (
50%of total).
25% rule.The standard — $20,000 across 3 pairs
The standard — $20,000 across 3 pairs
Total:
$30,000. Trading: $20,000. Reserve: $10,000.Mode: BasicMode on BTCUSDT, ETHUSDT, SOLUSDT.Allocation: $8,000 / $7,000 / $5,000 (40/35/25).No pair exceeds 25% of trading capital (20,000 — at the boundary).For wider safety: $7,000 / $7,000 / $6,000 (35/35/30) — none exceeds 35%.The dual-mode operator — $30,000 across modes
The dual-mode operator — $30,000 across modes
Total:
$45,000. Trading: $30,000. Reserve: $15,000.Modes: BasicMode (Mode 4) on BTCUSDT, ETHUSDT. FullBullMarket (Mode 1) on SOLUSDT.Allocation:- BasicMode:
$20,000($10,000BTC,$10,000ETH) - FullBullMarket:
$10,000(SOL only)
33%. Two modes test different regimes.The dual-venue operator — $40,000 across Binance + Bybit
The dual-venue operator — $40,000 across Binance + Bybit
Binance:
$25,000 total ($17,000 trading, $8,000 reserve). Bybit: $20,000 total ($13,000 trading, $7,000 reserve).Binance: BasicMode on BTCUSDT ($10,000), ETHUSDT ($7,000). Bybit: BasicMode on XRPUSDT ($8,000), LINKUSDT ($5,000).Different symbols per venue (no double-exposure). Both venues maintain their own reserves.Capital sizing per mode
Each mode has its own capital sweet spot:| Mode | Recommended capital | Per-pair max (25% rule) |
|---|---|---|
| BasicMode (Mode 4) | ~$20,000 | ~$5,000 |
| FullBullMarket (Mode 1) | ~$20,000 | ~$5,000 |
| LongTimeLongMoreProfit (Mode 2) | ~$20,000 | ~$5,000 |
| LongTimeLong (Mode 3) | ~$25,000 | ~$6,250 |
| LowMoney (Mode 5) | ~$3,000 | ~$750 |
| MinimalMoney (Mode 6) | ~$1,500 | ~$375 |
| Tsl2Sell (Mode 7) | ~$10,000 | ~$2,500 |
| MarketMaker (Mode 1001) | $20,000+ | n/a (single pair typical) |
| MarketMakerMinimal (Mode 1002) | ~$5,000 | n/a (single pair typical) |
25% per-pair rule produces very small per-pair allocations. If single-pair allocation falls below practical min-notional consideration, consolidate to fewer pairs at this capital tier.
Common allocation mistakes
❌ All-in on one pair
❌ All-in on one pair
Single-symbol allocation. Concentration risk fully realized.Fix: split across at least 2-3 symbols once your capital permits. The
25% rule is your friend.❌ Equal-weighting across uncorrelated symbols you don't understand
❌ Equal-weighting across uncorrelated symbols you don't understand
❌ Scaling up after a good month
❌ Scaling up after a good month
+10% realized in month 1 → “I’ll deploy +50% more capital next month.”Reality: a good month doesn’t predict the next month. Scaling up after good performance is recency bias.Fix: scale capital deliberately, with rules (“after 3 consecutive profitable months, scale +25%”). Not impulsively.❌ Adding capital to a drawdown
❌ Adding capital to a drawdown
Position is
-15% underwater. “I’ll add more to lower the average entry.”Reality: this is averaging-down, which can deepen the loss. The reserve is for emergencies, not for “saving” bad positions.Fix: stop-loss is your tool for managing bad positions. Don’t reach for averaging-down as a default.❌ Different reserves per venue without thinking
❌ Different reserves per venue without thinking
Binance:
60% reserve. Bybit: 30% reserve. No specific reason.Reality: inconsistent reserve discipline across venues makes risk hard to reason about.Fix: same ~50% reserve target on every venue. If you have specific venue-trust reasons to be more conservative on one, document the reasoning.❌ No reserve at all
❌ No reserve at all
100% of exchange balance deployed.Reality: any drawdown affects full exposure. No buffer for opportunities or stress.Fix: 50% reserve. Yes, your “working” capital is smaller. The resilience is worth it.
When to scale capital up
Wait at least 1 month after starting
Wait at least 1 month after starting
The first month is paid education. Mode dynamics need a month to reveal themselves. Don’t scale capital based on the first 4 weeks.
Scale `25%` at a time, not `2x`
Scale `25%` at a time, not `2x`
$20,000 → $25,000 (+25%) is reasonable. $20,000 → $40,000 (2x) is aggressive without much added evidence.Compounding scaling lets you assess the dynamics at each new size.After 3 consecutive non-negative months
After 3 consecutive non-negative months
A simple rule: 3 months of break-even-or-better realized P&L. Then scale by
25%.This is conservative; aggressive operators scale faster. But conservative scaling means you’re never substantially overcommitted to a strategy that’s about to mean-revert.Match scaling to confidence growth
Match scaling to confidence growth
The right time to scale capital is when you genuinely understand what the bot does and why it does it. Not when you’re hopeful it’ll work; when you’ve seen it work through enough conditions to have informed confidence.
When to scale capital DOWN
After unexplainable losses
After unexplainable losses
-15% realized in a month, you don’t have a clean explanation for why. Scale down 25% while you investigate.Better to operate smaller while learning than to keep paying tuition you don’t understand.Personal stress / external concerns
Personal stress / external concerns
Family issues, job changes, health. If your operational attention is impaired, smaller capital matches the lower attention.
Regime mismatch confirmed by backtest
Regime mismatch confirmed by backtest
Backtest shows your current mode underperforms in the current regime. Either change modes or scale down. Don’t keep paying for a regime mismatch.
Need liquidity
Need liquidity
Life happens. If you need capital out of crypto, withdraw from reserve first; if more is needed, scale active modes down to free capital. Don’t withdraw from active positions mid-trade.
Best practices
What’s next
Reserves
The 50% rule in detail — why and how.
Risk Overview
The full risk framework.
Sub-accounts
Strategy isolation for experimentation.
Modes
Mode-specific capital recommendations.