From 8a9c6e27a537978f5a3ba8a10f56e3f52004b621 Mon Sep 17 00:00:00 2001 From: Sam Germain Date: Wed, 2 Mar 2022 12:53:24 -0600 Subject: [PATCH] docs/leverage.md: Added freqtrade_liquidation_price formula to docs --- docs/leverage.md | 9 +++++++-- 1 file changed, 7 insertions(+), 2 deletions(-) diff --git a/docs/leverage.md b/docs/leverage.md index de0b0a981..55f644462 100644 --- a/docs/leverage.md +++ b/docs/leverage.md @@ -70,9 +70,14 @@ One account is used to share collateral between markets (trading pairs). Margin ``` ## Understand `liquidation_buffer` -*Defaults to `0.05`.* +*Defaults to `0.05`* -A ratio specifying how large of a safety net to place between the liquidation price and the stoploss to prevent a position from reaching the liquidation price +A ratio specifying how large of a safety net to place between the liquidation price and the stoploss to prevent a position from reaching the liquidation price. +This artificial liquidation price is calculated as + +`freqtrade_liquidation_price = liquidation_price ± (abs(open_rate - liquidation_price) * liquidation_buffer)` +- `±` = `+` for long trades +- `±` = `-` for short trades Possible values are any floats between 0.0 and 0.99