2. Trading Strategies - Core F...
Adding Capital Guide
10 min
understanding capital management in ai baskets effective capital management is essential for optimizing your investment strategy sagemaster's ai basket platform provides flexible options for adding funds to your existing baskets, allowing you to scale your investments strategically without disturbing your carefully designed asset allocations methods for adding capital to your baskets one time capital addition the "add capital" feature allows you to increase your investment in an existing basket without creating a new one or disrupting your current allocation strategy access your basket navigate to "ai basket" in the main menu select the basket you want to add capital to initiate capital addition click the "add capital" button in the basket management interface a modal window will appear specify amount enter the amount you wish to add in your quote currency (e g , usdt) review the amount and confirm it's correct confirm transaction click "add" to confirm the system will distribute the added funds according to your current basket allocation verification the platform will process the transaction and display a confirmation message your basket's total value will update to reflect the added capital automated regular investments (auto buy) the auto buy feature enables systematic capital addition on a recurring schedule, implementing a dollar cost averaging (dca) strategy access basket settings navigate to your basket's management page look for the "auto buy" section enable auto buy toggle the auto buy switch to "on" configure parameters amount per cycle specify how much to invest each time frequency choose from daily set a specific time weekly select day(s) of the week and time monthly choose a date (1 28) and time save changes confirm your settings the system will automatically invest the specified amount according to your schedule you can adjust your auto buy settings at any time change amount increase or decrease the investment amount based on your financial situation adjust frequency modify how often investments occur pause or resume temporarily pause auto buy without losing your settings resume when you're ready to continue strategic considerations for adding capital lump sum vs dollar cost averaging lump sum addition adding a large amount at once potentially beneficial in strongly trending markets greater timing risk dollar cost averaging (auto buy) regular smaller additions over time reduces timing risk potentially lower overall returns in consistently rising markets better psychological comfort during market volatility market condition adjustments consider adjusting your capital addition strategy based on market conditions during market downturns consider increasing auto buy amounts to acquire assets at lower prices opportunistic lump sum additions may be appropriate for significant dips during strong bull markets maintain regular auto buy schedule consider taking partial profits on significant gains during sideways markets regular auto buy combined with rebalancing can be particularly effective allocation impact when adding capital to your basket proportional distribution new capital is distributed according to your current target allocations helps maintain your desired portfolio structure potential rebalancing effect adding capital may reduce the need for selling assets during rebalancing can be more tax efficient in some jurisdictions opportunity for allocation adjustments consider reviewing and potentially updating your allocations before adding significant capital use the "edit allocation" feature if your investment thesis has changed need more? check this for more advanced information https //docs sagemaster io/marketplace/chapter 4 managing risks with ai baskets "the most important investment you can make is in yourself very few people get anything like their potential horsepower translated into the actual horsepower of their output in life " — warren buffett happy trading! the sagemaster team