Leverage that scales with market breadth

Key takeaways

1. 1Market breadth mode starts each trade at a base multiplier and ramps toward a cap only when the market leans with it.
2. 2The final leverage is always clamped to the venue maximum for that market.
3. 3Keep the cap modest: breadth also leans hardest at the end of big moves.

The idea

Market breadth measures how much of the market is moving the same way. When most tokens are rising together, a long signal has the wind behind it; when the market is split, a long signal is on its own. Market breadth leverage uses that: each trade starts at a base multiplier and ramps toward a cap only as breadth leans with the trade's direction. In a balanced market you trade at the base.

It is the default leverage mode in Batch Create, labeled "Market breadth (scaled live)", because it avoids the worst habit in leveraged trading: using the same high leverage in every condition.

What the alert carries

lev_mode

breadth

lev_base

The base multiplier: 1, 2, 3, 4, 5, 10 or 20x

lev_cap

The ceiling: the TensorTrader cap (10x) or the exchange maximum per token

lev

Not set in breadth mode; leverage is decided when the alert fires

The three leverage modes compared

Whatever the mode, the final number is always clamped to the lower of your policy and the venue's maximum for that market. IBKR and Alpaca always execute at 1x; on IBKR, leveraged exposure is routed to leveraged ETFs instead.

Market breadth

Base when balanced, ramps toward the cap as the market leans with the trade

Signal confidence / full max

With a CSV confidence column, 1x at 50% confidence up to the max at 100%; without one, the token maximum

Static fixed cap

The lower of your cap, the token maximum and the platform maximum

Choosing a base and cap

1. 1Start with a base of 1x or 2x and the TensorTrader cap of 10x.
2. 2Run it on paper and look at the leverage actually used per trade on the dashboard.
3. 3If most trades sit at the base, breadth rarely leaned your way; your strategy may be contrarian.
4. 4Raise the cap only after a long record at the current settings.
5. 5Use Poll max leverage to load each token’s exchange maximum before choosing "Exchange max".

A caution

Breadth leans hardest at the end of big moves too: the last leg of a rally is often when everything is up together. Breadth scaling sizes up in strong markets; it does not predict reversals. Keep the cap modest, keep stops in place, and remember that leverage magnifies fees as well as gains, because fees are charged on the full notional.

Worked example

Base 2x, cap 10x. In a balanced market, a long signal trades at 2x. If most of the market is rising together, the same signal ramps toward 10x, but never past the market's own maximum: on a token whose venue cap is 5x, it stops at 5x. A short signal in that rising market stays near the base, because breadth is leaning against it. On IBKR or Alpaca the order is always 1x regardless.

How to see what leverage was used

Each open position and closed trade on the dashboard records the leverage actually applied after the clamp. Compare it with your base and cap after a few weeks on paper. If breadth rarely leaned your way, consider a static cap instead.

Frequently asked questions

Can breadth mode exceed the exchange maximum?

No. Leverage is always clamped to the lower of your policy and the venue maximum.

What is the TensorTrader cap?

10x by default, used as the ceiling unless you choose the exchange maximum per token.

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