DCA Strategy

Dollar Cost Averaging (DCA) is a strategy that automatically adds to your position when the price moves against you, lowering your average entry price.

How DCA Works

1. The bot opens an initial position based on your signal/entry conditions.
2. If the price drops by a set percentage (price deviation), it places a safety order to add to the position.
3. Each safety order can be larger than the last (volume multiplier), so you buy more at lower prices.
4. When the price recovers to your take profit target (calculated from the average entry), the entire position is closed for profit.

Key Settings

• Safety Orders — Number of additional orders to place (e.g., 3-10).
• Price Deviation — Percentage drop between safety orders (e.g., 1-3%).
• Volume Multiplier — How much larger each subsequent order is (e.g., 1.5x means each order is 50% larger than the previous).
• Take Profit — Percentage above average entry to close the position.

Example

With 3 safety orders, 2% deviation, and 1.5x multiplier:

• Initial buy: $100 at $50,000
• Safety order 1: $150 at $49,000 (-2%)
• Safety order 2: $225 at $48,020 (-2%)
• Safety order 3: $337.50 at $47,060 (-2%)
• Total invested: $812.50, Average entry: ~$48,240
• Take profit at 1.5% above average → closes at ~$48,964