đ This is a quick overview of what the DCA bot can do in particular:
- Finding the right moment to enter and exit a trade based on one or more technical indicators.
- Making DCA orders grids for every cycle to improve average entry prices.Reducing the trade size when necessary for safe recovery.
- Keeping your risks and drawdowns low while letting your profits flow.
Find out more about how to launch a DCA robot here.
Customizing Bot Parameters
In this article, we will guide you through the process of setting up a DCA bot using the additional options available in the âBot parametersâ menu.
What is Manual Adjustment?
When setting up your new DCA bot, the âManual Adjustmentâ section provides you with the flexibility to customize your botâs settings and personalize your trading strategy.
Customizing Bot Parameters
Step 1: Basic settings
In basic settings, you can choose:
- Trading pair
- Investment: the amount that is allocated to the trading robot. It can be changed in case of modifying the default parameters during manual adjustment.
- Long or short position
đ In a long position, the bot will buy a base currency to accumulate profit in a quote currency.
By buying the base currency, your bot will open a position. A DCA (buy) order will be placed below that trade, and a Take Profit (sell) order will be placed above. As the price rises, your bot sells all the base currency purchased at the Take Profit level, making a profit.
đ In a short position, the bot will sell the base currency to accumulate profit in the base currency after.
The bot begins by selling the base currency. Above this trade, it will place the DCA (sell) orders and the Take Profit (buy) order below it. If the price goes up, the bot sells even more and uses that to get quote currency. But when the price goes down, the bot buys back the base currency and makes a profit. Then it starts a new cycle with the initial base currency investment.
Press âCustomize bot parametersâ to go to manual robot adjustment.
Step 2: Initial order
At this stage, you should decide how much your first order will be, and enter the Initial order amount.
There are two types of the initial order:
- With a Limit order, your bot begins trading at a set price, but there might be a delay when it starts. This order will be placed at the best available price in the order book when the cycle begins.
- With a Market order, your bot starts right away, but it could lose out because of price slippage. This means it can buy or sell an asset at a not-so-great price compared to the current one.
After, you will have two options to determine how your DCA bot enters a trade.
đ Instantly
Selecting the âInstantlyâ option will create your DCA bot right after configuring all the settings. This means that your position will be opened right away, along with the necessary DCA orders.
â° By Indicator Signal
Alternatively, you can choose the âBy Indicator Signalâ option. In this case, your DCA bot will wait until the selected indicator(s) generate a signal on the chosen timeframe. Please note that this option requires some time for the indicators to generate a signal, while your bot remains in a waiting status.
You can choose single indicators or combinations:
Single:
- Bollinger bands
- Stochastic
- RSI
- MACD
- CCI
Combinations:
- Bollinger bands + CCI
- Bollinger bands + RSI
- Stochastic + CCI
You can also adjust a timeframe for a chosen indicator.
Step 3: Safety orders
Next, you need to enter the amount of a safety order, and their quantity.
Order Amount: This is the total investment in your DCA orders, denominated in the traded currency.
Quantity: This determines the number of safety orders.
To optimize the position averaging process, you can leverage two additional features: Amount Multiplier and Step Multiplier.
Use the amount multiplier to increase the size of each subsequent safety order. For example, each subsequent DCA order can have an amount increased by a factor of 1.14.
Use the step multiplier to expand the grid of safety orders, increasing the intervals between them. This helps reduce the number of trades as the price moves against the initial order. For instance, each subsequent DCA order can be further away from the previous one by a factor of 1.05.
You can limit the number of active safety orders with active orders limit. Using this feature, when the bot starts, only a part of the DCA orders will be placed and added to the order book.
For example, if you set a limit of 3 orders with 5 safety orders in total, only 3 DCA orders will be placed, and 2 more will be pending. The system will âactivateâ one pending safety order once the bot fills a DCA order.
All safety orders and parameters can be seen on the graph and in the table.
Step 4: Take Profit (TP)
With Take Profit, you determine the condition and percentage of price change at which the bot should close the position to secure profits.
Trailing Take Profit
You also have the option to enable Trailing for your Take Profit. When enabled, the Take Profit will automatically adjust following the price movements. For example, if you set a trailing percentage of 1%, the Take Profit will be moved up by 1% whenever the price changes.
The price deviation is the distance between the current market price and the trailing order. For instance, if it is 1% and the current price is 100, the trailing order will be set at 99. And as long as the market price moves up â it will move after it, but as soon as it falls by 1%, the trailing order will be triggered, and the deal will be closed.
Step 5: Stop Loss (optional)
In addition to Take Profit, you can set a Stop Loss order to prevent further losses. This order will close the position if the price moves in the opposite direction.
The Stop Loss level is calculated based on the maximum weighted average position price. When setting the Stop Loss Price Change Percentage, the system will estimate the approximate loss, considering all averaging orders.
Trailing Stop Loss
You can enable Trailing for Stop Loss. With trailing, the Stop Loss will automatically adjust following the price movements. For example, if you set a trailing percentage of 1%, the Stop Loss will decrease by 1% whenever the price changes.
Step 6: Risk management
This section includes settings that ensure the complete closure of your DCA bot and manage risk effectively.
You can enter the trade end date. When the robot reaches the trade end date, it stops opening new trades and closes the position and active trades after the cycle ends. In this case, you close the actual trade at the moment of your choice.
To refine your DCA bot even further, you can set maximum and minimum price levels. This helps you avoid buying outside the needed channel and minimize risks.
By default, the DCA bot has no specific limits on buying or selling prices, allowing it to follow the current market price and initiate new cycles as needed. However, by adjusting the maximum and minimum price levels, you can ensure that your bot operates within a predefined price range.
When reaching the max price, the robot stops opening new trades when it leaves the channel boundaries. If it has an open trade when exiting the channel, it will execute it. The robot becomes active after the price returns to the range between min and max price. The open position closes when take profit/stop loss is reached or in manual mode by the user.
After the price falls below the min price, the robot stops opening new trades but does not close the current position. If it has an open trade when exiting the channel, it will execute it. The robot becomes active after the price returns to the range between min and max price. Total target profit allows you to set the return you expect. When the target profit is reached, the robot will complete the last sale and stop.On the contrary, if the robot reaches allowable total loss, it will stop trading without completing the last trade.
Step 7: Check the result
When creating a robot, you can use the panel to see your strategy on the chart and table. To see the table or a chart, press on a bar chart icon and switch between the needed formats.
Congratulations! Your DCA bot is now fully customized and ready to be launched.