When launching a DCA robot, several settings directly affect the number of trades and investment amount. Here they are:
1 – the amount of the initial order. According to the exchange regulations, it cannot be less than the minimum trade amount (for Binance, it is on the contract specification page).
2 – the amount for additional safety orders. Based on the settings of the amount multiplier, the funds for each safety order are calculated.
3 – number of safety orders. The larger the number of orders, the more investment is required to run the robot. There’s an opportunity not to set safety orders at all.
You can choose a different investment amount for a strategy. The larger the amount, the more detailed and large-scale you will be able to customize your robot. Although now, 40 USD is enough to start a DCA robot, we recommend choosing the amount of investment according to your risk profile and market situation. In addition, a bigger balance will better compensate for price fluctuations and minimize losses in case of high volatility.
How to calculate the minimum investment amount?
You need to select the initial order amount considering the minimum permissible values, then set the amount of the first safety order and the number of safety orders. You can get the final investment amount by choosing the parameters of the amount multiplier.
Let’s see how the investment amount is calculated with an example.
Total investment amount = Initial order amount + Safety order (SO1) + SO2 (SO1*Amount multiplier)+SO3 (SO2*Amount multiplier), where:
Initial order = 20
SO1 = 20
Amount multiplier = 1.14
The total investment amount comes out to: 20 + 20 + 20*1.14 +(20*1.14)*1.14=40 + 22.8 + 25.99=88.79
If you have any issues or questions about the minimum investment to launch a robot, you can always contact our support team.