The Pump Protection feature prevents your bot from following the price up in case of a pump and down in case of a dump.
What is a Pump and Dump strategy?
Speculative investors use the P&D scheme to artificially increase (or decrease) a coin's value. They aim to inflate the price and sell the asset at the pumped-up value. Once the target price is reached, they dump the price back within minutes. Some traders can benefit from this scheme, but the risk of instant losses when using the so-called Pump & Dump strategy is also very high.
How does it work?
For GRID and BTD Bots, the Pump Protection is activated for bots by default once you enable Trailing features. If the protection is active when the price moves rapidly, the bot will detect it and change its status to "Pump." In this case, the Trailing Up feature will not move grids up, and the Trailing Down feature will not add new grids down.
For DCA Bots, the Pump/Dump Protection prevents opening a position during abnormal price fluctuations - for both the "Immediately" and "By indicator" signal options.
Pump Protection for new GRID Bots
When creating a GRID Bot, you can change the Pump Protection option next to the active Trailing Up or Trailing Down features (in the Manual Adjustment section). The Pump Protection is always enabled by default, but you can deactivate it if needed.
Disabling the Pump protection increases risks, especially on highly volatile pairs.
Pump Protection for new BTD Bots
For the Buy the Dip Bot, the Trailing feature is enabled by default without an option to disable Pump protection. If necessary, you can turn Trailing off when setting up a new BTD Bot.
Pump/Dump Protection for new DCA Bots
The Pump/Dump Protection is enabled by default for all DCA Bots. However, you can turn it off in the Manual Adjustment section → the Risk Management tools.
Pump Protection for active bots
If you have an active GRID or DCA Bot, you can enable or disable the Pump Protection anytime. To do that, click on the necessary bot and hit the [Bot actions] button on the right-hand side.
Then select the [Modify Bot] option.
In the Manual Adjustment section, you can enable or disable the Pump Protection. Then click [Continue].
Take another look at all your settings before confirming them. To proceed, hit the [Confirm] button.
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