Bitcoin bot without leverage: what can and can't go wrong?
With leverage you trade with borrowed money, and one sharp drop can close your position at once. Without leverage that can't happen. But 'no leverage' doesn't mean 'no risk'. Here is what can and can't happen with a bot that only sells above its buy price.
What can't happen
- No liquidation: you only buy with your own money, so the exchange can't force-close your position.
- Never more lost than you put in: there is no debt.
- No selling at a loss: since late September 2026 the bot in this logbook only sells above its buy price; there is no stop-loss any more.
What can happen: your money sits still
When bitcoin drops hard, the ladder buys in and those buys wait for the price to come back. That can take a long time. On Bitvavo's daily prices since 8 Mar 2019, bitcoin was 25% or more below its top on 54% of days, and 40% or more below on 32% of days. The deepest drop was 73.6%; the longest unbroken stretch at 40% or more below the top lasted 553 days. See for yourself at how deep can bitcoin fall.
How the bot is designed for it
At the top the bot puts at most half the capital into bitcoin, and more only as the price drops, up to all of it at 25% below the highest open buy. That keeps money back for deeper dips and keeps it working down to about 40% below the top. If bitcoin falls further, it waits for a recovery.
Other risks to know
- The exchange: your money sits at an exchange. Pick a regulated one and never give your API key withdrawal rights.
- Bugs: a bot does exactly what you tell it, even when that's wrong. Check every order against the exchange.
- Fees: they take part of every profit; count them in.
So only use money you want to put to work and won't need soon. Not advice; past weeks say nothing about future weeks.