Risk Panel Usage

Risk Panel Usage

The risk panel provides a focused view of the metrics that matter most for the safety of your grid bot. While the main dashboard shows activity and profitability, the risk panel highlights exposure, leverage, and proximity to danger zones. Learning to read these metrics helps you intervene before small issues become costly problems.

Exposure Metrics

Total position size: The combined notional value of all open positions across filled grid levels. If you have positions at 8 grid levels with $100 each, your total position is $800. This number grows as the price drops through your grid (for a long bot) because more buy orders fill.

Watch this metric relative to your account balance. If your total position approaches or exceeds your available margin, you are at increased liquidation risk. A healthy ratio keeps total position below 50-70% of your account balance at 1x leverage, proportionally less at higher leverage.

Filled level count: How many grid levels currently hold a position. A high count means the price has dropped significantly through your grid. In a 20-level grid, having 15 levels filled indicates the price is near the bottom of your range and most of your capital is deployed.

Capital utilization: The percentage of your total allocated capital that is currently in active positions. Low utilization (under 30%) means the price is near the top of your range and most of your capital is idle. High utilization (over 70%) means the price has dropped through much of your grid.

Leverage Metrics

Nominal leverage: The leverage multiplier you configured (1x, 2x, 5x, etc.). This is a static setting that does not change during operation.

Effective leverage: Your actual leverage considering all accumulated positions relative to your margin. This changes dynamically as positions accumulate. At 2x nominal leverage with 10 of 20 grid levels filled, your effective leverage may be closer to 3-4x because of the stacked positions.

Effective leverage is the more important metric. If it exceeds your comfort level, consider reducing your nominal leverage or order size.

Distance to liquidation: How far the current price is from your estimated liquidation price, expressed as a percentage. At 20% distance, the price would need to drop 20% from its current level to trigger liquidation.

This is the single most critical risk metric. If the distance to liquidation drops below 10%, you should consider reducing exposure or stopping the bot. Below 5% is a danger zone where a single volatile candle could trigger liquidation.

Grid Position Metrics

Price position in range: Where the current price sits within your grid range, shown as a percentage. At 50%, the price is at the midpoint. At 10%, it is near the bottom of the range. At 90%, it is near the top.

This metric tells you how much room the price has before hitting grid break boundaries. A price position near 0% or 100% means the bot is close to triggering grid break protection.

Grid break distance: The percentage distance from the current price to the nearest grid boundary (low or high). If the price is at $95 with grid low at $90, the grid break distance to the downside is about 5.3%.

When this distance is small (under 3%), the bot may shut down soon. Monitor this closely during volatile periods.

Buffer zone status: Whether the price is currently within the grid break buffer zone. The buffer is a small region (default 0.2%) outside the grid boundary where the grid break detector starts its confirmation timer. If the price is in the buffer zone, you have seconds to minutes before a potential shutdown depending on your confirmation time setting.

Risk Scores

The risk panel may aggregate individual metrics into an overall risk assessment:

Low risk (green): All metrics are within comfortable ranges. Effective leverage is manageable, liquidation distance is large, and the price is well within the grid range. No action needed.

Medium risk (yellow): One or more metrics are approaching concerning levels. Perhaps effective leverage has increased or the price is nearing a grid boundary. No immediate danger, but monitor more frequently.

High risk (red): One or more critical metrics are in dangerous territory. Liquidation distance is small, effective leverage is high, or the price is in the grid break buffer zone. Consider stopping the bot or reducing exposure.

Using Risk Metrics for Decisions

Here are practical decision frameworks based on risk panel readings:

Distance to liquidation below 15%: Reduce leverage or order size. Consider stopping the bot and restarting with more conservative settings.

Effective leverage above 5x: Even if nominal leverage is 2x, position accumulation has pushed real exposure too high. Stop adding new positions or reduce order sizes.

Price position below 20% in range: The price is near the bottom of your grid. Most capital is deployed, and you are running out of room before grid break. Prepare for a potential shutdown.

Grid break distance below 2%: Shutdown is imminent. Decide whether to let the bot shut down automatically or intervene manually with different actions.

Capital utilization above 80%: Nearly all your capital is in positions. Even if the price stays within range, you have little reserve for unexpected events. Monitor closely.

Regular Risk Reviews

Even when all indicators are green, conduct a brief risk review:

• Daily: Glance at distance to liquidation, price position in range, and effective leverage.
• Weekly: Review capital utilization trends, check if ATR has changed enough to warrant range adjustment, and verify stop loss is appropriately set.
• After major market events: Review all metrics after any 10%+ price move. Conditions may have changed enough to require configuration adjustments.

Summary

• The risk panel highlights exposure, leverage, and proximity to grid break and liquidation boundaries in real time.
• Effective leverage and distance to liquidation are the most critical metrics; monitor these daily and act when thresholds are breached.
• Use the risk panel for a structured daily review and for rapid assessment during volatile market conditions.

Next Step

Set up automated notifications so you do not miss critical events in Alert System.