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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?

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

For GRID and BTD Bots

  • Pump Protection is enabled by default when Trailing features (Trailing Up or Trailing Down) are activated.

  • Pump Protection remains mandatory for BTD Bots when Trailing features are active.

  • 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.

For DCA Bots

Pump/Dump Protection prevents opening new positions during abnormal price fluctuations. This applies to both the Immediately and By indicator signal options. It does not stop the entire bot; it only prevents opening new positions while the protection condition is active. The setting is under Manual Adjustment > Risk Management tools.

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.

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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.

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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.

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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.

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

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