What does max_open_trades control?

The max_open_trades setting in MagicTradeBot determines the maximum number of Funding Farming positions that the bot can run simultaneously.

This parameter is crucial for managing capital allocation, risk exposure, and operational complexity.

🔹 How It Works

  1. Limits Concurrent Positions

  2. Example: max_open_trades: 2

    • The bot will open up to 2 hedged Spot + Futures trades at the same time
    • Additional eligible symbols are ignored until a position closes

  3. Controls Capital Usage

  4. Fewer open trades → less capital tied up at any moment

  5. Helps maintain liquidity for other strategies or unexpected market moves

  6. Manages Risk

  7. Reduces liquidation risk, since fewer positions are active simultaneously

  8. Lowers execution complexity, minimizing chance of errors in volatile markets

🔹 Practical Considerations

Value Effect
1 Very conservative; minimal capital usage and risk
2–3 Balanced approach; moderate exposure and opportunity capture
4+ Aggressive; higher capital requirement and potential liquidation risk
  • Recommended: 1–3 trades for most users, especially when testing Funding Farming strategies

🔹 Example Scenario

  • Funding rate threshold = 0.03
  • Eligible symbols ranked by funding rate: BTC, ETH, SOL, ADA
  • max_open_trades = 2 → bot selects BTC and ETH
  • SOL and ADA are skipped until one of the first trades closes

Result: The bot captures high funding fees while limiting simultaneous exposure.

✅ Key Takeaways

  • max_open_trades limits the number of active Funding Farming positions

  • Lower values:

    • Reduce capital usage
    • Reduce liquidation and execution risk

  • Higher values:

    • Capture more opportunities but increase exposure and risk
  • Balancing this parameter is essential for safe and efficient Funding Farming

📎 Related Topics