A DCA crypto trading bot is a highly efficient tool designed to manage and generate passive income through systematic market strategies. The core principle behind dollar cost averaging (DCA) bots is to buy a certain share of assets after a predetermined price variation has occurred, ensuring that investments are made incrementally over time rather than in a single lump sum. This method is particularly beneficial during periods of short-term market decline, as it allows investors to spread their risk over multiple purchases instead of risking a large sum of money all at once. Most individuals who are keen on minimizing risk and maximizing potential returns will attempt to apply the DCA trading strategy during such market conditions. By doing so, the DCA technique effectively mitigates the danger associated with investing a significant amount of capital in a volatile market environment, thereby providing a more balanced and strategic approach to investment.

The DCA bot tab has 3 core areas: The chart of the selected asset, the settings of the DCA bot and the created bots underneath the chart.

The chart will show you the asset that you have selected in the settings of the DCA bot from the exchange. You can add the indicators on the chart to improve your understanding of the current market situation.

In the bot settings, first, choose your exchange and the API. This decides where you want to run your DCA bot. After picking the exchange, choose the pair for your DCA bot.

The next step would be to select the direction of the bot. Long will open only buy trades while short will open only sell trades.

Afterwards, you need to determine the Amount per trade. This parameter will determine the size of your initial position when your first entry order will be placed. When you choose how much to trade, the bot will show you how much is needed and what assets you have available on the connected API. The needed amount includes the bot's DCA settings (Order size Multiplier and Maximum number of DCA orders).

You can also select the type for the Amount per trade. This can either be in the Quote or Base currency or in the % from the total available amount.

The next section in the bot settings will determine the starting conditions for your bot. Please refer to the table below:

After selecting the bot starting condition you can tune the settings of the bot. If you do not have any specific DCA strategy that you have in mind or you are not that experienced with the DCA strategy you can select our Automatic settings, which is a general preset that will be suitable for the most assets and any indicator.

However, if you would like to set the specific settings for the DCA bot then you can select the Custom settings. In the Custom settings, you have two main blocks. The first block is dedicated to the DCA settings, in which there are 4 core parameters: Max DCA Orders, Price Deviation, Order Size Multiplier and Price Deviation Multiplier.

This parameter will determine how many entries your overall strategy will have. For example: If you will put 3, that will mean that including your initial position, you will have 2 additional orders.

This is the value in % which determines the deviation of the additional entries from the entry price. Example: If you go long and the price of the asset is 100$ and you put an order price deviation of 1% that will mean that the first additional entry will occur when the price drops by 1%, the second entry will be triggered when the overall price will drop by 2% (as the interval between the first and the second additional entry will be 1%).

This parameter will determine the amount that you put into each additional position. If this parameter is equal to 1 that means that each additional entry will be equal to the initial amount. The extra volume will be added to your position from the second DCA entry. Example: Your initial position was 10$ and your Volume Multiplier is set to 2. When you reach your 1st DCA extra order target your additional order will have the same volume of 10$. When you reach your 2nd DCA target your extra order will be 20$ (previous position volume * multiplier). Your 3rd DCA target will place an order of 40$.

This value will increase the price deviation between each additional entry. It is calculated as the price deviation multiplied by the deviation multiplier. For example: if you enter long at the price 100$ and have a price deviation of 1% with the price deviation multiplier of 2 that will mean that the first additional entry will occur when the price drops to 99$, however the second will occur when the price will go to 97$ (deviation of 3% = 1% * 2). The third additional position will be entered at 94$ (deviation of 6% = 3% *2).

Once the bot enters the trade you have the number of settings for the exit of the strategy. You can select either one or multiple conditions for exit. These are: Take Profit, Stop Loss, Move Stop Loss to Breakeven, and Trailing Stop.

Once you have finished setting up your bot you can check your settings using the Backtest button. The Backtest will show you the results for the past 2 weeks. Once the Backtest is calculated you will see the graph with all the trades and the results on the right-hand side.

Once you selected and backtested your parameters, you can start your DCA bot. The newly created bots will appear underneath the price chart.

Next to each bot, you will be able to find the set of actions that you can apply to this bot.