A Bot During a Flash Crash
During a sudden sharp price drop, a grid bot may keep buying down the entire range in minutes if the crash blows through every level, and a rebalancing bot may trigger a large rebalance right after the ratio was rocked, both without pausing to ask whether conditions changed.
This is why position sizing and range-setting matter more in volatile periods.
#AITradingBots #DYOR .
During a sudden sharp price drop, a grid bot may keep buying down the entire range in minutes if the crash blows through every level, and a rebalancing bot may trigger a large rebalance right after the ratio was rocked, both without pausing to ask whether conditions changed.
This is why position sizing and range-setting matter more in volatile periods.
#AITradingBots #DYOR .