Pump protection

The Pump Protection feature prevents bots from responding to rapid and extreme price movements, such as sudden price spikes (pumps) or crashes (dumps). 

In this guide, you’ll find:

• What is a Pump and Dump Strategy?
• How Pump Protection Works
• How to Configure Pump Protection
  • New GRID Bots
  • New BTD Bots
  • New DCA Bots
• Modifying Pump Protection for Active Bots

What is a Pump and Dump Strategy?

The Pump and Dump (P&D) scheme is used by speculative traders to manipulate a coin's value artificially.

1. Pump: The price of a coin is intentionally inflated to attract buyers.
2. Dump: Once the price peaks, assets are sold, causing the value to crash within minutes.

While some traders profit from this strategy, it carries a high risk of instant losses.

How Pump Protection Works

1. For GRID and BTD Bots:
   • Pump Protection is enabled by default when Trailing features (Trailing Up or Trailing Down) are activated.
   • If abnormal price movement is detected, the bot’s status changes to “Pump”:
     • Trailing Up stops adjusting grids upward.
     • Trailing Down stops adding grids downward.
   • Disabling it increases risk, particularly for volatile trading pairs.
2. For DCA Bots:
   • Prevents opening positions during abnormal price fluctuations (applies to both "Immediately" and "By indicator" signal options).
   • Pump Protection remains mandatory for BTD Bots when Trailing features are active.

How to Configure Pump Protection

New GRID Bots:

1. In the Manual Adjustment section during bot setup:
   • The Pump Protection toggle is enabled by default.
   • You can deactivate it if necessary.

New BTD Bots:

1. The Trailing feature is enabled by default, and Pump Protection cannot be disabled.
2. To deactivate Pump Protection, turn off the Trailing feature entirely during bot setup.

New DCA Bots:

1. Navigate to the Manual Adjustment section.
2. Under Risk Management tools, the Pump/Dump Protection toggle is enabled by default.
3. You can choose to disable it if needed.

Modifying Pump Protection for Active Bots

1. Select the active bot you wish to modify.
2. Click the [Bot Actions] button.
3. Choose [Modify Bot].
4. In the Manual Adjustment section enable or disable the Pump Protection toggle.
5. Review your updated settings and click [Confirm] to save changes.

Need Assistance?
If you encounter any issues or have questions, don’t hesitate to contact the Bitsgap Customer Support Team.