Hi I’m Jason, a Fullstack Designer and co-founder of Signal
I have a little technique that I thought I’d share with you all, it’s called laddering your buys. Simply put, it’s a strategy I use on most of my entries that guarantees I always get the best price.
This is something that can be done on almost any exchange, it’s just a matter of placing multiple limit buys staggered in descending order – I do this on Binance with the help of Signal, but this same strategy would work on any other exchange: Bitfinex, Bittrex, Kraken etc…
Here’s an example: say you are planning to enter a RENBTC trade. You have done your analysis and have identified a potential bounce around the 430–415 sats mark. And as you know, TA is not a perfect science. You could set your entry for 430 sats, but that would mean sacrificing any extra gains if the reversal happens lower.
Instead you choose place three separate buys at 430, 422 and 415 sats. Now you are offloading the risk and guaranteeing you will get the best price.
This process of entering at multiple points is called Laddered Buys, which is something you can do easily with Signal, a trading tool for Binance.
There are a couple of potential risks that you should be aware of if you are going to implement this strategy.
Typically, exchanges will allow you to set multiple buy limit orders at once but to place a target (take profit) you first need to wait until one of those buy order fill. Binance, for instance, will not let you front load (place an order to sell capital you don’t yet own) your sells. To avoid missing your sell opportunity you will need to manually log into Binance to place a target after your first buy has filled, and then again after your next buy order has filled as you will need to increase the total amount you wish to sell.
The other risk with this strategy is if you forget to cancel your open buy orders after the trade you are in has already bounced and hit your targets. Once the price decreases again you could find yourself buying bags you don’t wanna own.
But if you’re lazy like me, and don’t want the risk from doing this manually then you should check out Signal – we make it as simple as toggling Laddered and inputting multiple entry points.
As well as Laddered Buys, we also threw in a few other nifty features such as:
- Setting a stop loss and up to 5 take profits at the same time
- Trailing stop loss
- SMS alerts
Anyway folks, I hope this post helps! Feel free to comment below if you have any other questions about Laddered Buys.