Wont the 50% increase in profit offset the loss causes by deleveraging?
Answer
Auto deleverage in spot arbitrage bot is a way to keep the bot from getting liquidated from and spike pump. when leverage of x2 autodeleveraging wont be that much on an asset since it will take a 50% pump to do that. so the frequency is usually minimal especially in a bullish market but in a ranging market and bear market autodeleverge is barely triggered
