Surviving a Black Swan Event: Is Your Bot Ready?

Nassim Taleb defined a "Black Swan" as an unpredictable, high-impact event. In crypto, we call this "Thursday." When Bitcoin drops 50% in a day, most bots get liquidated. Here is how to survivor-proof your algorithms.

1. Hard Stop Losses (Circuit Breakers)

Indicators lag. Moving averages react slowly. A Hard Stop (e.g., "If Portfolio drops 15%, Close All") is your emergency brake.

• Our Platform includes global "Kill Switches" for this exact scenario.

2. De-Correlated Assets

Don't just trade BTC and ETH. They move together.

• Hold Stablecoins (USDT/USDC).
• Hold Gold (PAXG).
• Hold Short positions (Hedge).

3. Avoid Over-Leverage

Leverage kills. If you are 10x long, a 10% move wipes you out.

• Rule: Keep leverage below 3x for algorithmic strategies. The volatility of crypto provides enough return without needing excessive leverage.

The Goal is Survival

Soros said it best: "First, you must survive." You can't capture the recovery rally if your account balance is zero.