FAQ
Short answers to common questions about the bot’s grid/martingale approach, and margin/exposure.
Grid + Martingale basics
QWhat strategy does the bot use?
AA contrarian grid with a hidden take-profit and a martingale-style sizing progression. It adds positions at fixed pip intervals against the move and looks for mean reversion.
QWhat is a “grid step”?
AThe fixed distance (e.g. 30 pips) between grid entry levels. If price moves against the position by one step, the bot can add the next leg.
QWhat is martingale progression in this context?
AEach new grid leg can be larger than the previous one. This can help recover faster on a retrace, but it increases exposure as price moves against you.
QWhat is “hidden take profit” (hidden TP)?
AThe bot tracks take-profit internally and closes via a market order when conditions are met, instead of placing a broker-side TP order for every leg.
Pricing, margin & worst-case risk
QWhat is the real exposure of 1,000 units on EUR/USD?
AOn OANDA, units are the base currency, so 1,000 units = 1,000 EUR. At 1 EUR = 1.169 USD, that’s about $1,169 notional exposure.
QWhat does “notional” mean?
AIt’s the full face value of your position (your true exposure)
QIf the exposure is $1,169, why don’t I need $1,169 in my account?
ABecause Oanda offers 50:1 leverage, so OANDA only sets aside about 2% of the notional as Margin Used.
QIn a $1,500 account, if the bot holds 25,958 units (10 trades at 1.2× sizing), what margin percentage does that represent?
AAt 50:1 leverage (2% margin) and EUR/USD = 1.169, the notional exposure is 25,958 × 1.169 ≈ $30,340. Margin used ≈ $607. The Margin Closeout % is roughly (0.5 × 607) / 1500 ≈ 20% (comfortable buffer). General recommendation is to keep the margin closeout % below 50%. If it approaches 50% you’re in margin-call territory. If it approaches 100%, liquidation risk is immediate.
QWhen does OANDA auto-liquidation kick in?
AIt’s tied to your equity vs. Margin Used. As long as you keep Margin Closeout % well below the high-risk zone, you’re in good shape. With your current sizing and $1,500 NAV, you’re around ~20%, which is nicely conservative.
QWhat can I do to mitigate risk?
ATwo simple levers: add funds (increases your buffer) or reduce units (immediately lowers Margin Used and P/L swings) by manually closing out a larger position in the bot.
QWhat can I do to avoid auto-liquidation during extreme movement against my trades?
ATradeWithBot may show a margin closeout alert (for example: “Alert threshold: 50.0% closeout risk; liquidation zone starts at 100%”). This is general risk information, not a guarantee or a recommendation. It is your responsibility to monitor margin usage and manage risk. Two common ways to reduce liquidation risk are: (1) reduce exposure by closing some positions (which may realize losses), or (2) add funds to your broker account (which can increase available margin). With OANDA, debit card deposits are often available immediately (subject to OANDA’s rules, your region, and payment processing). You are responsible for understanding your broker’s margin rules and taking action before liquidation thresholds are reached.
QDo short EUR/USD positions earn interest, even when in loss?
AIt depends on current interest-rate differentials and your broker’s rollover rules. Depending on the pair and market conditions, rollover can be a credit or a debit, and it can change over time. Any rollover does not eliminate the risk of losses from price movement or leverage.
QDoes OANDA charge a fee per trade? How do they make money?
ATypically through the bid/ask spread and financing (rollover) adjustments. Whether you pay a separate commission depends on the specific account/pricing model—check your OANDA account type.
QWhat’s the worst-case scenario if the market trends strongly against us?
AIn a prolonged trend with limited reversals, a grid/martingale approach can accumulate exposure quickly. If price continues moving against the position, losses can accelerate and available margin can be consumed. If margin closeout thresholds are reached, your broker may close positions automatically (liquidation). Liquidation can happen quickly and may realize substantial losses, potentially up to most or all of the account value.
QCould I owe money beyond my account balance after liquidation?
AIn extreme market conditions (fast gaps, liquidity events), it may be possible for losses to exceed the funds you intended to risk. Whether negative balance protection applies depends on the broker, account type, jurisdiction, and the specific market event. You should understand your broker’s policies and your legal obligations before trading leveraged FX.
Control, security & responsibilities
QIs TradeWithBot giving me trading advice or telling me what to trade?
ANo. TradeWithBot is an automation and monitoring tool. It does not know your financial situation and does not provide personalized recommendations. You choose the environment (demo/live), the currency pair, and risk-related configuration (e.g., max trades, lot multiplier).
QDo you have custody of my funds?
ANo. TradeWithBot does not hold or transfer customer funds. Your funds remain with your broker. TradeWithBot can only place/close orders on your behalf via the broker API using the credentials you provide.
QWhy do you need my OANDA API key, and how is it protected?
AAn API key is required for the bot to place and manage orders through your broker account. TradeWithBot treats API keys as sensitive, stores them securely, and you can revoke/rotate your key at any time from OANDA. You are responsible for keeping your credentials private and using least-privilege settings where supported by the broker.
QIs grid/martingale risky?
AYes. These strategies can increase exposure as price moves against the position. They may perform poorly in strong trends and during volatile conditions. Use a demo account first and choose conservative sizing and limits.
Not investment advice. Trading involves risk, including the risk of losing the capital.