Capital Allocation simply means the specific amount of funds on your exchange that you allow Stoic to trade with.
For instance, if you have $10,000 on your exchange account but only want the algorithm to trade with $3,000, that $3,000 is your Capital Allocation (learn more about how automated portfolios work at đ stoic.ai).
Inside the Stoic app, you can easily increase this managed sum, decrease it (securing funds into stablecoins), or pause trading completely at any time.
Figure 1: The SETTINGS menu in the Stoic app featuring capital management options
đ How to Add Funds (Increase Allocation)
If you deposited new funds into your exchange account and want Stoic to manage them:
Navigate to Settings: Open the Portfolio tab in the Stoic app and select Add funds under the SETTINGS section. (Note: Fetching the latest balance from your exchange may take a moment).
Select Assets: Tap Edit allocation, choose the specific assets, enter the exact amount you wish to add, and tap Continue.
Review Plan Limits: Check your current subscription limit at the bottom of the screen.
If your new allocation exceeds your pre-paid limit, any additional deposit fees will be displayed.
On a monthly plan, exceeding your limit automatically upgrades your subscription starting next month.
Confirm: Review your initial allocation, deposit amount, and fees, then tap Confirm. The new funds will be integrated during the next rebalancing cycle.
đ How to Reduce Allocation (Hedge Funds)
If you want to lock in profits or reduce your market risk:
Navigate to Settings: Go to the Portfolio tab and select Manage hedging under SETTINGS.
Adjust Amount: Use the slider or manually enter the exact amount of assets you want Stoic to continue managing.
Review Conversion: Tap Confirm. The app will calculate the amount that will be converted into stablecoins (USDT/USDC) and removed from active trading.
Final Approval: Tap Confirm again. The algorithm will convert the requested portion into stablecoins within a few hours.
đ How to Stop Trading Completely
If you want to step away from the market entirely:
Go to SETTINGS and select Pause trading (or reduce your allocation to 0%). Stoic will liquidate all active positions, convert your entire managed balance into stablecoins, and pause all trading activity.
â Frequently Asked Questions (FAQ)
Q: What happens when I decrease my capital via "Manage hedging"? A: The bot will safely sell a portion of your crypto holdings into stablecoins (USDT/USDC). These funds stay safely on your exchange account, but the bot will no longer use them to execute new trades.
Q: Does Stoic withdraw my funds to an outside wallet when I reduce allocation? A: No. Stoic never withdraws funds from your exchange. "Reducing allocation" simply means converting that portion into stablecoins on your exchange account so the bot leaves it untouched.
Q: How long does it take for allocation changes to apply? A: Changes take effect during the next portfolio rebalancing cycle, which typically happens within a few hours.