It’s common for trades (SmartTrades, Signal Bot trades, or DCA Bot trades) to go into the red, especially in volatile markets. This doesn’t always mean you’ve lost money and only that the trade is currently at a loss on paper.
First: Don’t Panic
You only realize a loss when you close the trade below your entry.
Having trades open for weeks or even months can be frustrating, but until you sell, the only “cost” is the opportunity to use those funds elsewhere.
The crypto market is cyclical and many coins eventually rebound, giving you another chance to close in profit.
What Are Your Options?
When a trade is in the red, you generally have three choices:
1. Hold
If you believe the coin will recover, you can simply wait.
Patience often pays off in strong market cycles.
2. Average Down (Add Funds / Averaging Orders)
If you believe the coin will rise again, you can add more funds to lower your average entry price.
This reduces how far the price needs to climb before you can exit profitably.
Important: If the coin continues to fall instead of rebounding, your loss will increase. Only use this option if you have strong conviction.
3. Cut Losses
If you believe the coin will keep falling, or if you prefer to free up capital for other trades, you can close the position now.
Accepting a smaller loss may prevent larger ones later.
Practical Tips for Managing Multiple Trades in the Red
Focus first on coins most likely to rebound.
Use spare funds carefully, one trade at a time.
Avoid opening new trades while recovering because this spreads your funds too thin.
Keep reserves available for unexpected situations.
Limit the number of active trades so each one is easier to manage.
Key Takeaway
Hold if you believe in a rebound.
Average down if you’re confident and willing to commit more funds.
Cut losses if you think the coin will continue falling.
Using tools like Add Funds or Averaging Orders can help, but they work best when paired with careful planning and conviction in your trade.
Disclaimer
3Commas provides tools to help you manage trades. We cannot provide financial or investment advice. Please make decisions based on your own research and risk tolerance.