Asset Groups — Introduction & Instructions
Main problems in Assets Management through API
Assets under management or trust management through the API protocol provides a new level of security — the trader has the ability to manage investors’ assets without the requirement to physically possess the money.
Nevertheless, there are still inconveniences for both the trader and the investor:
- A trader needs to operate with the “profile” of each investor separately and set sell / buy orders. If a trader makes 3–5 trades a day, and he has 10 investors, then he needs to conduct 30–50 trades on each account, placing stop-loss, take-profit, and other orders. The management of each account individually is time-consuming.
- In order for an investor to work with 2 assets managers or more, it is necessary to create separate accounts on the exchange and transfer assets from each account via the API protocol — you must agree, it’s very uncomfortable.
We have developed a solution to these problems — Asset Groups which allows a manager to work with all contracts at once!
How do Asset Groups work?
Asset Groups is a function that is available on MBN platform, which allows a trader to combine several contracts on one exchange into one group and create orders for the entire group at once.
Let’s see how to create a group of contracts step by step:
- Open Dashboard, Contract Management section
2. Create a new group by clicking CREATE. You must specify the Name and select the Exchange (at this moment contracts from different exchanges cannot be combined into one group):
3. After the creation of the Group, it is necessary to add existing asset management contracts to it. To do this, select the group and press the ADD button. You can add an unlimited number of contracts to a group.
4. For more convenient management of several groups, we created a separate functionality — Groups Management. The screenshot shows that I created the Binance #1 group, which includes 4 contracts for $50 each. The current value of the assets in the group is 153 USDT in total.
5. To place orders, it is necessary to open the Terminal section and activate the “Asset Groups” mode by setting the checkbox in the upper left corner. The Group will be automatically activated.
6. How orders are executed?
This is a very important question since there can be several methods — with these thoughts we tried to choose the most convenient for the asset manager. We have implemented an option in which each order for a group will be divided into all contracts.
Each contract executes an order in accordance with the percentage in relation to the general group, i.e. the system calculates the percentage of each contract in relation to the entire group and executes the order in proportion to this percentage.
An order which is related to a group is set in proportion to the share of assets on each contract relative to the sum of all available assets in the group.
Contract 1 (C1) has 1 BTC
Contract 2 (C2) has 2 BTC
Contract 3 (C3) has 0 BTC
A trader who has C1, C2, C3 in the group is going to place an order to sell 1.5 BTC
(count from the smallest balance to the largest)
Share C3: 0/3 = 0, order size: 0 * 1.5 = 0
Share C1: 1/3, order size: 1/3 * 1.5 = 0.5
Share C2: 2/3, order size: 2/3 * 1.5 = 1
C1 — sell order 0.5 BTC
C2 — sell order 1 BTC
C3 — order to sell 0 BTC (will not be placed)
7. Why we use this technical solution??
Group assets is a serious tool to solve many problems in the field of asset management, so we decided to find a convenient balance between functionality for traders and investors.
The investor will not feel the difference in the management of his assets, while the trader will be able to manage the assets without any worries about the distribution of balances on each contract.
Who will benefit from Assets Groups?
Asset Groups is the necessary functionality for asset managers who work with a large number of investors. Groups can be formed by the date, by the size of the investor’s deposit, by different exchanges and by separate trading strategies for each group.