The number of simultaneous positions refers to the total number of positions open at the same time in the strategy you are using.The number of concurrent positions is the amount of budget you have set for your strategy divided by the amount per position.
For example, let's say the budget for your strategy is 1000 USDT. If you set the amount per position to be opened at 200 USDT, the number of simultaneous positions to be opened in the strategy will be 5.
The number of concurrent positions can have a significant impact on your strategy. In some cases, you may need to increase the number of simultaneous positions, while in other cases, it may be more profitable to decrease the number of concurrent positions.
To determine when the number of concurrent positions is decisive, you can consider the following factors:
Market volatility: When volatility is high, you may need to make decisions and execute trades quickly. In this case, a higher number of concurrent positions may be preferable.
Structure of the strategy: Algorithmic trading strategies that trade in short intervals may require a higher number of concurrent positions to be set. For example, some strategies designed with intervals of 5 to 15 minute candles may often require the use of more concurrent positions.
Risk tolerance: A higher number of concurrent positions usually means lower risk. Therefore, you should consider your risk tolerance and adjust the number of concurrent positions accordingly.
There is less risk if your available balance is spread across many different pairs than if it is traded in a single pair.